Pay Compression and Dispersion Analysis
Identify compliance risks and ensure fair pay
Salary.com’s Consultants help you identify pay compression and pay dispersion. We partner with your team to strengthen compensation practices, correcting disparities that undermine transparency, fairness, and business performance.
Compression and Dispersion Analysis Protects Your Organization
Pay compression occurs when employees with different levels of experience or responsibility are paid similarly. Pay dispersion, on the other hand, refers to unusually large pay gaps between employees in comparable roles.
Both distort performance-based pay, strain budgets, and quietly erode employee morale. A structured, data-driven analysis helps you uncover misalignments—and fix them before they turn into costly problems.
Identify and correct compression and dispersion risks
We flag when high performers are earning the same—or less—than new hires, or when similar roles have unexplained pay gaps. Correcting these imbalances improves morale, signals fairness, and helps retain key talent before they start looking elsewhere.
Align pay practices with financial and strategic goals
We help you restructure pay so it's aligned with contribution—not just tenure or negotiation skill—while staying within budget. The result: pay that supports growth and performance without triggering cost overruns.
Eliminate inefficiencies and legacy misalignments
From overpaid roles based on outdated benchmarks to compression caused by rapid hiring, we identify where your structure is leaking money or failing to reward what matters. Our fixes stop the silent budget drain and restore balance.
Standardize structures across regions and teams
We help ensure employees are paid equitably for similar work, even in different geographies or departments. This reduces internal conflict, simplifies administration, and strengthens your reputation as a fair employer.
Establish long-term controls to manage pay structure health
We don’t just fix the symptoms—we help you build monitoring tools, governance practices, and dashboards to manage compression and dispersion proactively. Your compensation structure becomes a competitive asset—not a recurring fire drill.
Our Process: Designed for Analytical Rigor and Actionable Results
Our pay compression and dispersion analysis is designed to identify pay misalignments that impact fairness, compliance, and financial performance. Our engagement will be tailored to your organization’s specific goals and circumstances, but you can typically expect the following steps:
Data Gathering and Role-Based Segmentation
- Compensation data is collected and segmented by job function, level, geography, experience, and performance to establish appropriate comparison groups.
Identification of Compression and Dispersion
- Salary.com’s industry-leading solutions are used to detect compression (undue similarity in pay across differing roles or tenures) and dispersion (excessive pay differences among comparable employees).
Adjustment Modeling and Budget Forecasting
- Targeted remediation scenarios are developed to address identified misalignments, with associated cost estimates and timeline projections.
Delivery of Final Findings and Recommendations
- A report is provided outlining compression and dispersion observations, proposed wage adjustments, financial impact modeling, and a structured implementation plan.
Ongoing Monitoring and Support
- Optional governance frameworks and monitoring tools are recommended to maintain alignment over time, support compliance, and respond to future organizational changes.
Why Choose Salary.com’s Consultants
Diversified and Experienced Team
Our individual consultants have decades of experience in a variety of industries. We have the knowledge and skills to help you in your specific organization, industry, and circumstances.
High-Touch Communication
Clear communication is a cornerstone of our process, and we will be with you every step of the way. Our team of consultants are available to provide guidance and support.
Salary.com’s Powerful Solutions
We leverage Salary.com’s industry-leading total compensation management platform, making full use of its trusted data and award-winning compensation solutions.
An Extra Set of Hands
Serious analysis is a big undertaking that all too often gets pushed to the bottom of the to-do list. This is a mistake, and everyone knows it, but sometimes your internal team just can’t get the time. Our consultants provide the extra resources and expertise to implement your compensation initiatives.
Third-Party Neutrality
Bringing in outside help demonstrates your commitment to fairness, transparency, and impartiality. It also guarantees a level of discretion not always possible within an organization.
Organizations Getting It Right
Insights You Need to Get It Right
