Compensation Analysis - What We Offer

Providing a Multi-Tier Approach to Compensation Analysis

BCG offers three levels of compensation analyses.

• Level 1 is designed to identify any areas of potential liability using data that is readily available from your HRIS system. By using pay, gender, ethnicity, and any job factor that is readily available (such as tenure), this level of analysis reveals any areas (by job group, pay grade, job title, or similarly situated employee groups—SSEGs) of potential liability that exist before controlling for any additional job factors such as education or outside experience.
  
• Level 2 drills deeper into the data to find out why the pay differences exist between groups (for only the potential problem areas identified in Level 1). By including variables such as education, experience, and “interaction terms,” we expect to identify reasons behind pay disparities.
  
• Level 3 investigates differences that still exist (and cannot be explained by job factors) and identifies areas where compensatory pay might be recommended (i.e., the pay changes necessary to bring groups to parity or to eliminate statistical significance).
  

Our general process for completing any one of the levels is identified below:

1. Consultation – Begin with a Project Meeting to discuss the process and determine timelines for completion.
2. Determine Analysis Groupings – The analyses are conducted by Job Title and any one of the following: Grade, Job Group, or SSEG, depending on relevance of groups and availability of data.
3. Prepare Data – We will provide one detailed data check to identify issues for the client to fix. Analyses will be conducted upon return to us. Additional fees may apply if further cleanup is necessary.
4. Develop Reports – The BCG staff will conduct the analyses and prepare draft reports for delivery to the client.
5. Delivery of Final Results - Includes an executive summary, results and recommendations via conference call. Hard copy and electronic reports can be provided.
6. Report Interpretation - BCG will help interpret compensation analysis reports during the life of the corresponding AAP plan year.

Want to know more about conducting OFCCP style compensation analysis?

• Statistical Compensation Analyses - The Basics
• Multiple Regression Compensation Analysis - Step-by-Step
• Similarly Situated Employee Groups (SSEGs)
• Reactive & Proactive Approaches to Compensation Analyses - Risks & Benefits Chart [PDF]
• Compensation Analysis Methodology Flowchart [PDF]

Want to know more about conducting OFCCP style compensation analysis?

Compensation Analysis Software - COMPARE

For more information about our pay equity and multiple regression analysis services, please contact Biddle Consulting Group, Inc. at (800) 999-0438 or staff@biddle.com