Compensation Analysis
68% of employees would switch employers for more pay transparency.
We evaluate your pay structure, drawing insights that support market competitiveness, internal equity, and compliance with government regulations, so you can make better decisions to attract, retain, and motivate employees.
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Real-time Market Data
We benchmark and validate compensation through the Economic Research Institute (ERI). We work directly with ERI to generate data based on unique job titles, locations, and industries, so everything is precisely tailored to your company.
Attract & Retain Employees
Use our market and pay equity analyses to make informed decisions about compensation. We make recommendations for resolving any concerns we find during analysis, and provide a compensation structure aligned with your compensation philosophy.
Full Legal Compliance
More and more states require companies to include salary ranges in their job postings or upon request. You can increase pay transparency using our recommended pay banding, tailored to each position within operable geographic zones.
Included in our Compensation Analysis Report...
Market Analysis
Pay Equity Review
Compliance Review
Pay Structure
Drive decisions that attract, retain, and motivate employees based on market pay data.
Prevent workplace discrimination claims and legal liability by ensuring equitable pay.
Avoid penalties and back pay by verifying compliance with FLSA classifications and other pay regulations.
Use career path benchmarks to guide employee raises and promotions.
Market Analysis
Learn how your compensation stacks up against market peers. Megastar HR has access to trillions of data points, including 9,000+ positions, 8,000+ locations, and 1,000+ industries.
We benchmark each position against comparable positions in the market to help you understand where you are lagging, matching, or leading the market. You can use this information to inform workforce planning, strategically increase pay to attract and retain the most in-demand talent, adjust your Total Rewards offerings, and reduce the impulse to search elsewhere for better compensation. We provide:
- Compensation Market Benchmark Data for the 10th, 25th, Median, 75th, and 90th percentiles, based on comparable positions and respective metropolitan (metro) locations of choice.
- Location-based Employment Report including demographic information and statistics for metropolitan area (e.g., population by age, gender, race; unemployment rate by age), and analysis with recommendations on how to maximize labor market and recruitment of specific positions in area.
- Market Analysis: We analyze employee compensation, qualifications (years of experience, education), and location against industry and other market benchmarks; and provide recommendations for strategically aligning with your company’s intended compensation philosophy.
Pay Equity Review
In 2020, there were over 65,000 charges of workplace discrimination, and the EEOC secured $440 million for these claimants. Despite their best intentions, companies may have pay gaps that are not only inequitable, but also discriminatory and illegal. Company seeks to minimize liability risk and improve pay equity with an internal equity analysis.
Megastar HR will conduct an analysis of all corporate employees by comparing base compensation and incentives with employees’ qualifications (years of experience, education, tenure), department/job family, performance level, and personal characteristics (EEO-1 categories, age, gender, race, disability status, veteran status), as provided.
With this information, Company will be positioned to make pay decisions more likely to attract, motivate, and retain good employees, and prevent workplace discrimination claims and legal liability.
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Compliance Review
10 – 20% of businesses have misclassified an employee as exempt from overtime, putting themselves at risk of lawsuits, penalties, and back wages. We'll alert you of any potential misclassifications or violations so you can feel confident in your company’s compliance. We provide:
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FLSA Exemption Classification Review: We conduct duties and salary tests for each position, identify potential misclassification, and provide recommendations for mitigating risk.
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Time & Attendance Policy Review: We review internal time and attendance policies and practices against federal, state, and local laws (sick and other paid leave, pay transparency, final paychecks), identify potential liability, and provide recommendations for mitigating risk.
Pay Structure
Every employee’s pay should be subject to the same criteria, within a structure designed to minimize bias and facilitate internal equity. Defined pay bands help accomplish this.
By intentionally designing a pay structure aligned with your compensation philosophy, you set your company up for success—to attract, motivate, and retain employees more likely to be aligned with your company’s mission, vision, and values.
With a structural foundation rooted in equity and administered upon merit, you will be more likely to retain top talent through clear promotional paths and performance expectations. Additionally, as more states require companies to include salary ranges in their job postings or upon request, your company will have the information needed to remain competitive and also fulfill current and future pay transparency laws.
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