Benefits of a Current Classification and Compensation Plan

We recently completed a classification and compensation study for a public organization where the last formal study was done over 20 years ago.  With this much time between formal classification and compensation studies, the normal outlook would be that the organization’s classifications and compensation plans would be dated and needing a complete overhaul.  We were pleased to find that the Human Resources Director and HR Administrator had worked diligently to keep the organization’s job classifications current with ongoing internal reviews and updates.  In addition, the organization’s compensation plans were evaluated and updated with semi-annual external market pay studies. 

We were able to affirm and align the organization’s classifications and compensation plans based on our internal and external assessments and address dated policies and slightly inconsistent grade and range structures.  This organization did not suffer a classification and compensation plans earthquake or sticker shock from the new study because of the ongoing internal and external work performed by the Human Resources Director and HR Administrator.  There are several benefits derived from maintaining a current classification and compensation plan. Some of those benefits are listed below.

  • Ongoing alignment of job classifications and compensation pay grade placements
  • Internal job and pay equity and external pay competitiveness
  • Consistency with compensation planning and budgeting per fiscal year
  • Earthquake and sticker shock prevention from new classification and compensation findings
  • Linear classification and compensation plans and less pocketed or over-utilized pay grades
  • Greater transparency and consistency with job assignment and pay expectations
  • Ability to hire and retain competent and skilled talent for the organization

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