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Establish your compensation philosophy (why I am doing this)
Gather market data. Identify surveys with your desired comparators
Identify benchmark jobs. Benchmark jobs are those that are representative of roles found across many organizations – standard roles such as Manager
Measure your market position. There are several ways to do this. If you have a lot of benchmark jobs, tabulate the average of all of the roles in the same internal level or grade. Weighted averages incorporating number of incumbents associated with each survey data point is a common approach.
Calculate the compa-ratio. This is the ratio of your data to the market — 100 means fully comparable, while a ratio under 100 indicates a below market position, and over 100, above market.
Check your budget
Start allocating. You will need to repeat 5 and 6 adjust with budget
