Without a pay philosophy, every raise sets a precedent you did not choose.
Most organizations have a pay structure by accident: the sum of past offers, counteroffers and negotiations. We help you decide how pay decisions should be made, then build salary ranges and structures that apply that decision the same way every time.
A salary range is the last step. The philosophy behind it is the first.
Before we build a single range, we work through the choices that determine what the ranges should be, because the numbers only hold up if the reasoning does.
Where You Want to Pay
Leading, matching or trailing the market is a real choice with real consequences. Trailing on salary can work if benefits are strong, which is why we set the target with the whole package in view. Setting market position with benefits in view is the core of a pay philosophy.
Which Market You Compete In
A role hired locally and one recruited nationally may need different reference points. We define the comparison market by role family, so the data answers the right question. Defining the right market is essential to a sound pay structure. Roles can differ.
What Moves Pay
Tenure, performance, skills and market shifts can all move pay. Deciding which ones count, and how much, is what turns a range into a policy managers can explain. Clear pay drivers make a pay structure explainable. Managers can then explain pay decisions.
Who Decides
Pay drifts when every manager negotiates differently. We help you set approval rules and exceptions, so consistency is designed in rather than hoped for. Approval rules keep pay decisions consistent across managers and make the pay philosophy something you can defend.
Ranges are useful only if people land in them for a reason.
We build grades and ranges from market data, then place every current employee in the new structure so you can see exactly where the gaps and outliers are before anything is announced.
Grades and Ranges
Roles of similar market value are grouped into grades with a minimum, midpoint and maximum. The midpoint reflects your chosen market position, so the structure carries the philosophy. Grades and ranges carry a pay philosophy into daily decisions about hiring, raises and promotions.
Employees Below the Range
Some employees will fall below their new minimum. We cost the adjustment and help you decide whether to close it at once or over time, because the answer depends on budget and retention risk. Costed adjustments close below-range gaps responsibly.
Employees Above the Range
Pay above the maximum is not usually cut; it is managed. We show how to slow increases or use lump sums, so the outlier resolves without a morale problem. Managing above-range pay protects morale and cost. Lump sums help manage it.
A structure that is not maintained becomes the next problem.
Markets move and roles change. We set a review rhythm so ranges stay tied to the market and pay stays defensible.
Annual Range Review
We adjust ranges when the market moves, not only when a candidate turns down an offer, so the structure leads hiring rather than chasing it. Annual range reviews keep a pay structure competitive, so offers lead the market you chose instead of chasing it.
Pay Equity Checks
Comparing pay for similar roles across the organization shows gaps that no single decision created. Where a gap needs a legal read, counsel available through our firm reviews it. Regular pay equity checks keep compensation fair and give you a chance to correct gaps before they become claims.
Pay Transparency Readiness
A growing number of states require pay ranges in job postings or on request. A documented structure is what lets you publish a range with confidence. A documented pay structure prepares employers for pay transparency laws in the states where they hire.
What employers ask about pay structure.
Are we too small for salary ranges?
Rarely. Even a small organization makes pay decisions that set precedents, and a simple structure keeps them consistent. The structure scales with you. Simple salary ranges help small employers stay consistent as they add people and make their first pay precedents.
Will ranges box us in?
They give you a framework, not a cage. Exceptions are allowed; they are just made deliberately and documented, which is what makes them defensible. Documented exceptions keep a pay structure flexible and defensible when a hire or retention case needs one.
Do we have to share ranges with employees?
Depends on your states and your culture. Some states require it in certain situations; beyond that it is a choice we help you weigh. Pay transparency rules vary by state and situation, so the right approach depends on where your people work.
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents — two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
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