There are some things, like salary surveys, that may stand out to you as obvious tools of the trade when it comes to compensation planning. But what other tools are out there that can make you more efficient at completing your responsibilities.

Whether you are new to the world of compensation or an experienced practitioner, run through this list and see what you might want to add to your toolbox.

Let’s start with salary surveys, just to make sure your library has what you need:

• General industry salary surveys: If you’re responsible for determining the competitive pay for the jobs in your organization, you need data. One of the most common, yet most critical, is a comprehensive general industry salary survey from a reputable vendor, which covers a majority of the jobs in your organization and includes participants from all industries. Typically, you need at least one of these. Many companies choose to purchase more than one general industry survey and blend data to smooth out the highs and lows.
• Industry-specific salary surveys: Some jobs in your organization can only be filled with employees who have specific industry experience. Therefore, you are competing with a narrower group of employers for those potential employees. Your market pricing methodology needs to reflect that by incorporating industry-specific salary data alongside general industry data.

Other data will be useful to you as well:

• Annual planning projection data: Each year, you will be asked to provide guidance or suggestions on how much the company should budget for salary increases, whether or not they should adjust their salary structure, and how increases should be distributed. It helps to have a couple of sources of annual compensation planning data on which to base your recommendations.
• Policies and practices reports: You’ll need a way to keep tabs on what your labor market competitors are doing in terms of total rewards administration and management. A policies and practices report will include such things as when and how to pay shift premiums, what reimbursement is available for continuing education, or how to manage paid time off, amongst many other things.

Beyond data, there is a whole host of things that will make your job easier:

• Total rewards or compensation philosophy statement: This will connect the business strategy and talent strategy to the work that you do. Having a documented total rewards philosophy that you know is supported by the organization’s leaders will guide you in making decisions in all sorts of compensation design and administration.
• Market pricing tools: First you’ll want a market pricing methodology, also known as a benchmark methodology. This is one of the ways you execute your total rewards philosophy. A market pricing methodology encourages consistency by documenting things such as the surveys used, scope cuts, aging factors, and ways to develop composites. To help you stay organized, you’ll also what some form of software or an HRMS system to connect your organizations job’s with the survey jobs.
• Job evaluation process and documentation: In addition to market pricing a job, many companies evaluate jobs based on consistent criteria that align them to internal infrastructure, such as levels and titles. Having a way to document the evaluations, establish connections between jobs and within departments, and keep track of changes over time will save you a lot of work in the long run.
• Annual compensation calendar — Get organized: After a full year in your role, it should be clear what activities need to take place annually, when you tend to be slower (or busier) and able to take on project work, and when you can take steps to prepare for the busy season. Put this all into a calendar and reference it often.
• A network of peers and colleagues: Questions are going to pop up from time to time, as new situations evolve (e.g., a pandemic). It helps to have access to a network of compensation/total rewards professionals as well as strong relationships with your key stakeholders and other members of the HR team. As in any other job, your network is a critical part of your toolbox. (World@Work is a great place to start.)
• Historical information for your company: Poke around in old files and archives. Figure out how the compensation system in place today came to be, what’s been tried in the past, and what ideas have been discussed. Talk to department managers who’ve been with the company for a longer period — ask them what’s working and what’s not.

An added benefit

Beyond having these tools to make your job easier, think of it as being kind to your successor. You likely won’t be at your current job forever. Having all these tools in place will make transitioning a new person into your role, or a new person onto your team, a breeze. Be kind and hope that someone will do the same for you down the road.

Looking for more tools and tricks to help you in your role as a Total Rewards professional? Give us a call at 1-855-286-5302.