This checklist is designed to guide HR professionals through the process of reviewing employee compensation to ensure fairness, competitiveness, and alignment with company policies and market standards.
Collect current compensation data for all employees including salaries, bonuses, and benefits to create a comprehensive overview.
Research and analyze market compensation trends in the industry to understand competitive pay rates and adjust accordingly.
Review compensation levels within the organization to ensure fairness and equity among employees in similar roles.
Engage with department heads to discuss compensation needs and performance indicators that may influence salary decisions.
Create a report summarizing findings and recommendations for adjustments in compensation based on data analysis and discussions.
Present the compensation review findings and recommendations to senior management for approval before implementation.
Inform employees about any changes to their compensation, providing context and rationale for the adjustments.
Ensure all steps taken during the review process are documented for future reference and compliance.