Author: ERI

Understanding industry-specific compensation trends has always been a way for compensation professionals to remain forward-looking and proactive as it pertains to developing competitive compensation packages. Government contractors navigate a compensation environment that is highly regulated, auditable, and risk-sensitive, making staying knowledgeable of current pay practices and trends a priority for compensation planning. This particularly becomes critical for government contractors as informed pay decisions sit at the intersection of cost control, talent strategy, and risk management.  

From building competitive and defensible labor rates for government proposals to confidently passing Defense Contract Audit Agency (DCAA) and Defense Contract Management Agency (DCMA) audits, insight into industry dynamics and trends sets government contractors in a better position for success. In ERI’s recent webinar on 2026 Compensation Trends for Government Contractors, Jonas Johnson, Ph.D., took a closer look at these trends and the shifting market forces that ultimately influence compensation management for government contractors. Beginning September 2025, data that have been historically available have become unavailable. Thus, the findings in this webinar are based on the current economic environment, specifically looking at the trajectory of compensation growth.  

Current Workforce Growth 

Three sectors were the focus of this webinar: defense, information technology, and health care. All jobs in the United States experienced growth at the average of 2.12% in 2025. In 2025, jobs for defense contractors grew by 2.70%, while jobs for health care contractors grew by 2.27%, meaning both sectors experienced higher job growth than the national average. Alternatively, jobs for information technology contractors lagged behind the national average with job growth of 1.41%.   

However, all numbers are down from the historic job growth average of 3% on a year-to-year basis. For instance, in 2023, job growth for defense, health care, and information technology contractors were 4.50%, 4.11%, and 4.76%, respectively, with the U.S. national growth average at 4.12%. All three sectors experienced a drop in job growth from 2023 with numbers lower than what is to be expected on a long-term moving average. Despite some areas outperforming the national average, the trend among all contractors and organizations throughout the economy points towards a decrease in compensation growth.  

Labor Market – Job Postings 

According to an article from Indeed, all contractor jobs since January 2025 have been down by 15%, with all job postings in that same period down by 0.60%.¹ In terms of recruitment, government contractors are not currently recruiting at the same rate as other organizations in the economy. This leads to the inference that there is slower compensation growth, suggesting a weakening labor market that impacts certain sectors more than others (e.g., information technology). 

Openings, Hires, and Quits 

In terms of the open economy, the open jobs rate is currently 4.6%, up from 4.3% in the last quarter but below the 10-year average of 4.9%. Hires are at 3.2%, down from 3.3% in the last quarter. Despite the surges due to seasonal hiring, the overall trend points toward consistent drops in actual hires. Quits dropped to 1.8%, down from 2.2% in the last quarter.  

As of September 2025, the reported unemployment rate is at 4.4%, close to full employment. (Generally, full employment falls around 4%.) Despite significant movement in the labor market since September 2025, official data have yet to be released. According to ADP, October saw an addition of 47,000 jobs. However, November lost 32,000 jobs, resulting in a net gain of 15,000 jobs over October and November.² Now, the question comes down to how many people are entering the workforce on a monthly basis.  

Based on the Federal Reserve of St. Louis, 153,000 jobs per month must be added to the economy in order to maintain a consistent unemployment rate and break even with the current unemployment rate.³ This suggests that the reported numbers are not consistent with the current unemployment rate, with the actual unemployment rate being possibly higher than the reported 4.4%.  

Moreover, beginning October 2020, there has been a growing gap between open jobs and hires, demonstrating a structural change in patterns. This could be due to multiple factors, such as “ghost postings,” in which postings are intended to be unfulfilled, an inconsistent distribution of employees looking for work, or a limited number of skilled candidates in a given area for hire. 

Inflation 

As of September 2025, inflation is currently at 3%, and 10-year inflation is at 3.1%. With the Federal Reserve’s target of 2% for inflation, the current rate is higher than what is desirable within the federal target.  Since September 2025, some data sources have become unavailable. But, based on economic circumstances and patterns of inflation since September, the trajectory of inflation is generally increasing. In the long term, this points towards higher compensation growth as the demand for higher compensation increases amidst inflation. 

Contract Terminations 

Overall contract terminations in the U.S. in 2025 were 9,500, worth approximately $32 billion. The Armed Services Board of Contract Appeals (ASBCA) saw a 34% year-over-year increase in the number of appeals, with 67% that were sustained. The Civilian Board of Contract Appeals (CBCA) saw a 22% increase in appeals, with 61% of those appeals sustained. It is likely that, among the contracts that were terminated, the number may be smaller due to these appeals. Now, which government agencies were impacted by these terminations? 

Among a sample of 1,000 contracts, ERI analyzed the government contractors that terminated contracts in 2025 and compiled them into three distinct groups, which are shown in the charts below. Group 1 are government contractors with over $10 million in contracts, group 2 with $1-10 million in contracts, and group 3 under $1 million in contracts.  

Using ERI’s Salary Assessor to Build Market-Based Contracts  

Because government contractors tend to target specific percentiles based on the type of contracts that they are targeting, ERI is the preferred government salary data source for government contractors to set reasonable and competitive rates. Using ERI’s Salary Assessor, subscribers can look up market-based labor cost targets in specific percentiles from the 10th percentile to the 90th percentile. ERI’s compensation management platform provides access to the validated government contractor salary compensation survey data needed to set competitive and strategic rates for proposals.  

When deciding on rates for proposals, contractors often need to weigh contractual requirements with market realities, especially when positions span multiple labor categories, locations, and skills/certifications. ERI’s Salary Assessor supports that workflow by helping teams align a labor category (LCAT) to a defensible market benchmark, choose a target percentile that matches the competitiveness of the role, and reflect geographic differences so that the same job is not priced identically in different labor markets. It provides a consistent way to document assumptions and keep rates aligned across departments and bids, so that government contractors are not rebuilding logic from scratch with each proposal. 

Ready to make compensation management easier? Click here for a free demo to begin your journey with ERI!  

Sources

1. Stahle, Cory. “Job Applications From Federal Workers Cooled in May After DOGE-driven Spike.” Hiring Lab, Economic Research by Indeed, 26 June, 2025. www.hiringlab.org/2025/06/26/job-applications-from-federal-workers-cooled-in-may/. Accessed 16 Dec, 2025. 
2. Wallace, Alicia. “A first look at November hiring shows the private sector lost 32,000 jobs.” CNN, 3 Dec, 2025. www.cnn.com/2025/12/03/economy/us-adp-private-jobs-report-november. Accessed 16 Dec, 2025. 
3. Bick, Alexander and Victoria Gregory. “Breakeven Employment Growth: A Simple but Useful Benchmark.” Federal Reserve of St. Louis, 15 April, 2025. www.stlouisfed.org/on-the-economy/2025/apr/breakeven-employment-growth-simple-useful-benchmark. Accessed 16 Dec, 2025. 

Equality between men and women as it pertains to equal pay has been a fundamental principle of the European Union (EU) since the Treaty of Rome of 1957, which established the European Economic Community (EEC). Since 1957, a number of EU laws have sought to clarify and expand the principle of gender equality to include working conditions, social security, access to goods and services, work-life balance, maternity protection, parental leave, and equal treatment in work in a self-employed capacity.¹ However, according to a recent report by the European Commission, “A Union of Equality: Gender Equality Strategy 2020-2025,” the EU still has a 15.7% gender pay gap.²   

In an effort to close the gender pay gap, the European Union recently adopted a new law, Directive 2023/970, to specifically address pay equity and transparency. According to the Official Journal of the European Union, the purpose of Directive 2023/970 is “to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms.”³ Directive 2023/970 was adopted in 2023 with a three-year implementation period ending on June 7, 2026, with companies obligated to report for the entire period of 2026. This means that employers in EU member states need to have the required systems and processes in place by January 2026 to comply with the reporting requirements.⁴ This article will outline the main points of the EU Pay Equity and Pay Transparency Directive so that HR and compensation professionals can prepare and take the necessary steps toward compliance.

What Is the Objective?

The goal of Directive 2023/970 is to end gender-based pay inequity by mandating greater transparency in salary structures and improving employee access to pay information. 

What Is the Scope? 

The Directive applies to both public and private sector employers and covers all individuals in an employment relationship under national law in the EU, including part-time, fixed-term contract, temporary employment agency, and digital platform workers, often known as workers in the “gig economy.” In addition, the Directive seeks to improve the rights of job applicants during the recruitment process.⁵ 

Key Transparency Measures 

The Directive seeks to increase transparency in pay structures and improve employee rights to access compensation information, including candidates applying for jobs. While the specific legal requirements of the Directive should be reviewed carefully for compliance, here are the key transparency measures to consider: 

Pay Transparency before Employment 

Employers must disclose the initial pay or pay range for a position to candidates prior to the interview or job offer stage to encourage transparent negotiation. Also, employers cannot request current or prior salary amounts from candidates. Job titles and job advertisements must also be gender neutral.⁵ 

Transparency in Compensation Structures 

Employers must provide employees with the criteria used to establish pay levels and pay progressions. This does not entail disclosing individual pay information for specific employees; rather, companies are obliged to provide accessible statistical data on compensation structures based on gender-neutral and objective criteria for progression, such as skills, seniority, results, and impact.⁴ 

Employee Rights to Information 

Employees can request details on their individual pay levels and average pay levels for their category of work (i.e., those performing the same or equivalent work) broken down by gender. Employers have up to two months to supply this information after the request has been submitted.⁵  

In addition, employers can no longer impose confidentiality clauses regarding employee compensation. Employees cannot be discouraged from sharing their pay information, but disclosure must be specifically for the purpose of enforcing equal pay rights. Keep in mind that these requirements must also comply with EU data protection legislation.⁴ 

Reporting Obligations 

Companies with 100 or more employees are required to publish data on gender pay gaps, including (but not limited to) data on overall and median pay gaps, variable pay, the proportion of women and men in each pay quartile, and the gender pay gap within each category of work. If unjustified gender-based pay disparities exceed 5% within any worker category, then they must be rectified within six months. Otherwise, employers are obligated to conduct a joint pay assessment with employee representatives to pinpoint the causes and implement corrective action plans. 

The reporting requirement timelines vary by organization size: 

• Employers with 100 to 149 employees: reporting every three years from 2031 

• Employers with 150 to 249 employees: reporting every three years from 2027 

• Employers with 250 or more employees: annual reporting from 2027 ⁵ 

How Can ERI Help You Achieve Equal Pay? 

Organizations of all sizes can turn to ERI’s Assessor Platform to develop transparent, data-driven pay structures.  Our robust salary survey database provides the current market data that you need to benchmark jobs accurately, set consistent pay ranges, define pay grades and easily export customized reports that clearly communicate the criteria for your pay decisions, such as years of experience, level, organization size (revenue, assets, number of employees, or fiscal year budget), skills, certifications, shift differentials, and much more.  

In addition to providing the data and analytical tools needed for transparent benchmarking, ERI’s Compensation Management solution includes tools specifically designed to address internal pay equity, including gender-based pay gaps. Subscribers can use the Pay Equity tool to comb through a selected Employee List and compare pay for members of a protected group, such as gender, to identify differences in base salary, incentive, or total cash compensation based on job title or another control variable, such as department, location, seniority, grade, education, performance, or hire date. Users can easily export Pay Equity reports to share findings and follow up with action plans to resolve any unjustified pay disparities. After implementing any corrective actions, the platform makes it easy to update Employee Lists with new compensation information so that subscribers can rerun Pay Equity audits and check that all gender-based pay gaps have been resolved. 

Use ERI’s Pay Equity tool to identify gender-based pay disparities. 

References: 

1. “Equality between Women and Men.” EUR-Lex, Publications Office of the European Union, 3 Oct. 2021, eur-lex.europa.eu/EN/legal-content/glossary/equality-between-women-and-men.html. 
2. European Commission, Directorate-General for Justice and Consumers. “Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. A Union of Equality: Gender Equality Strategy 2020-2025.” Document 52020DC0152, EUR-Lex, Publications Office of the European Union, 3 May 2020, eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52020DC0152. 
3. European Parliament, Council of the European Union. “Directive (EU) 2023/970 of the European Parliament and of the Council of 10 May 2023 to Strengthen the Application of the Principle of Equal Pay for Equal Work or Work of Equal Value between Men and Women through Pay Transparency and Enforcement Mechanisms.” Document 32023L0970, EUR-Lex, Publications Office of the European Union, 10 May 2023, eur-lex.europa.eu/eli/dir/2023/970/oj/eng. 
4. Pop, Ancuța and Cătălina Șuhan. “Pay Transparency in Practice: What It Means for Companies and Their Executive.” Business Review, 10 Nov. 2025, business-review.eu/business/legal/pay-transparency-in-practice-what-it-means-for-companies-and-their-executives-290716. 
5. Thenmayr, Florina. “The EU Pay Transparency Directive: How Companies Can Prepare for New Rules on Equal Pay.” Legal 500, 14 Nov. 2025, www.legal500.com/developments/thought-leadership/the-eu-pay-transparency-directive-how-companies-can-prepare-for-new-rules-on-equal-pay/. 

Arising out of necessity in the COVID-19 pandemic, flexible work models have become commonplace worldwide. Many organizations across various industry sectors now recognize that flexible work arrangements yield both high performance and productivity as much as an in-office environment. Not only that, but many employers are adopting hybrid work models — in which employees are required to work a set number of days on-site but can work remotely other days — and remote work models — in which employees work exclusively from home or other off-site locations — as an effective tactic to appeal to job seekers and retain top talent.  

According to a recent study conducted by Robert Half, 88% of employers provide some type of hybrid work option, with hybrid job postings growing from 15% in Q2 2023 to nearly a quarter (24%) of new jobs in Q2 2025.¹  With trends such as these, flexible work arrangements are expected to remain a common option offered by many organizations.  

Ultimately, hybrid and remote work have redefined traditional methods of compensation management, requiring HR teams to shift from traditional (in-office) to distributed (multi-geographic) workforce models. Because of this, compensation structures that are market-backed and equitable are at the core of an organization’s compensation strategy for a flexible workforce. 

The Challenges of a Flexible Workforce 

Setting pay policies has never been a simple task. With the rise of flexible workforces, HR and compensation specialists must consider the complexity and sensitivity of remote and hybrid compensation methods. While there are benefits to flexible work arrangements, it does not come without potential challenges, such as these:

Equity and fairness: Managing fair pay for a hybrid workforce can be complex. Imagine two employees who perform similar roles and are paid the same rate but work in different locations. Employee A works in-office in a high-cost urban area near company headquarters, while Employee B works remotely from a lower-cost area. Despite earning the same salary, these employees may have significantly different purchasing powers, potentially impacting morale and satisfaction. Alternatively, basing compensation on where the employee is located or performing their job using cost–of–labor differentials or location-specific salary data can still lead to a perception of unfairness if the differences in compensation are not communicated well. Often, striking the right balance requires transparency in pay methodology and consistent justification for pay rates. 

Management and performance: Managers can find it difficult to communicate with remote workers, presenting a unique challenge in encouraging a collaborative work environment, in addition to providing feedback and training, especially to less experienced employees. Potential issues may also arise from misconceptions of reduced accountability and productivity as observing employee performance gets tricky.  

Data and administration: Remote and hybrid work models may introduce more administrative demands, such as managing pay structures between different locations, tracking and adhering to pay regulations between locations, and setting appropriate benchmarks for remote roles by incorporating a mix of geographic market values. 

HR and compensation professionals must tailor their approach to fit an individual organization’s unique compensation strategy and goals as there are various approaches to hybrid and remote salary planning.  

Common Approaches to Compensation for Hybrid and Remote Workforces

As organizations adapt to hybrid and remote work, compensation models must evolve to balance fairness, competitiveness, and flexibility. Here are some approaches that HR and compensation experts may use to structure pay for distributed workforces: 

Geographic Market-Based Pay: Many organizations consistently anchor pay to the geographic location of the employee or job-performed. For example, a software engineer in Austin might earn more than a counterpart in Lima due to higher regional pay norms in Austin. In this case, using geographic-specific salary survey benchmarks ensures that pay is equitable and defensible.  

Figure 1. Use ERI’s Salary Assessor to benchmark pay for job titles in specific geographic locations, customizing analyses by industry, organization size, and more.

National Pay with Adjustments: In other cases, organizations may use an approach that combines national base pay rates with geographic adjustments to manage compensation for branch offices. For example, an organization might set a standard salary structure based on the nation of their headquarters, such as a company located in Los Angeles benchmarking pay against U.S. national average rates, and adjust pay for remote employees in specific locations based on the differences between the local labor market and the national average, treating them like branch offices. Implementation often involves the use of geographic differentials to determine different pay rates for the same job or salary level.  

Figure 2. Use ERI’s Geographic Assessor to analyze geographic differentials for branch offices as compared to the U.S. national average. 

Geographic Bands: Geographic banding is a common method that groups locations with similar labor costs into pay bands or tiers. Grouping similar locations together into a single band allows for simpler administration, while still matching relatively closely to local labor market conditions. For example, in ERI’s “Remote Worker Compensation Strategies” white paper, a possible scenario places any location with a cost–of-labor differential between 94.1 and 104.0 into Band 1. This band has a width of 10 centered on 100%. Compensation planners could also structure bands in different ways, such as placing a band of 10 in the 100-109 range or using bands of 5 in the ranges of 100-104 and 105-109. Once the number and ranges of bands are determined, administrators can assign differential adjustments to the bands. In this example, Band 1 might carry a 0% adjustment, Band 2 a +10% adjustment, and Band 3 a +20% adjustment, thus creating a simple and consistent framework for adjusting compensation by location.

Targeted Remote Acquisitions: As organizations adopt remote hiring, they gain access to a wider pool of talent. This might offer a particularly useful approach for talent acquisition of executives and individuals in technically-skilled roles. For example, AI-savvy and LLM/ML experts may receive additional premium pay due to the current high demand and limited supply of talent in this area. This makes regular benchmarking with ERI’s survey data essential, helping organizations identify where skill premiums are warranted and adjust pay accordingly to attract and retain top talent. 

Figure 3. Use the Adjustments tool in ERI’s Salary Assessor to apply pay premiums for targeted Skills and Certifications.

Cost-of-Living Adjustments: Another less common approach entails viewing the remote worker as a relocated employee. This may require making a cost-of-living adjustment (COLA) to maintain the employee’s purchasing power in the remote location. Cost-of-living pay refers to an adjustment to help employees cover the rising costs of necessities, such as housing, food, and health care. Though compensation is generally determined by the cost of labor (based on the supply and demand of labor in a specific location and industry), a cost-of-living adjustment may be particularly helpful when managing relocations.  

Figure 4. Use ERI’s Relocation Assessor to compare the cost of living in two or more locations based on earnings level, home size, home ownership or rental, family size, number and value of automobile(s), and other user inputs.

These are just a few approaches that HR and compensation professionals can employ to develop effective talent and compensation strategies for their hybrid and remote workforces. For a more detailed discussion of remote pay practices and trends, download ERI’s “Remote Worker Compensation Strategies” white paper. 

Hybrid and Remote Workplace Trends 

Despite the popularity of flexible work arrangements, ERI’s “Remote Work, AI, and Compensation Best Practices – Spring 2024” survey results white paper highlights a possible shift away from remote work in a post-COVID-19 world. According to ERI’s ongoing survey of remote work practices, 36% of respondents reported that, while they are hiring remote workers, it is only under certain circumstances. Additionally, in comparing Q2 to Q4 2024, there was a notable 10% increase in participating organizations reporting that they are not hiring remote workers but are hiring on-site employees instead.  

ERI’s survey results demonstrate that, more than anything, compensation models are not a one-size-fits-all solution. As some organizations move away from an exclusively off-site remote work model towards flexible hybrid work options, ensuring that an organization’s compensation strategy is adaptable to ever-evolving work practices is crucial to maintaining equitable and competitive compensation.

Using Data to Drive Competitive Compensation

Effective hybrid and remote compensation design depends on leveraging accurate salary survey data and innovative compensation management technology, as provided in ERI’s Assessor Platform, the trusted solution for HR and compensation professionals.  

Reliable data are the key to ensuring that an organization’s compensation decisions are fair, competitive, and defensible. For over 35 years, ERI has been focused on gathering salary survey data and researching pay to inform our compensation solutions, offering HR and compensation specialists vetted and validated data for salary planning. ERI’s platform houses a comprehensive database, helping subscribers easily access the current data that they need to set pay and manage compensation in specific markets. 

Using ERI’s Assessor Platform, an essential resource for organizations of all shapes and sizes, subscribers can access accurate market data, optimize workflows, and manage complex compensation models to ensure that pay stays fair and competitive for hybrid and remote workplaces. From benchmarking pay in a specific market and analyzing geographic differentials to applying skill premiums and comparing the cost of living in multiple locations, ERI’s Assessor Platform has the data and resources that you need to successfully manage compensation for flexible workforces. See for yourself what makes ERI’s Assessor Platform a crucial resource in compensation management by trying a free demo today! 

Source: 

1. “Remote Work Statistics and Trends for 2025.” Robert Half, 3 Sep, 2025, https://www.roberthalf.com/us/en/insights/research/remote-work-statistics-and-trends. Accessed 16 Oct, 2025.

Strategic compensation planning is a fundamental component of good organizational management, providing a basis for monitoring progress and assessing results, as well as recommendations and guidance in managing total employee rewards. Planning contributes to organizational stability and growth, helping companies stay on track to reach their goals.  Since labor costs make up the majority of expenses for most organizations, it is critical to understand the various components that make up these costs.  Strategic compensation planning requires compensation analysis, which can be a complex process; however, it is a necessary tool to control costs and ensure fair practices and pay.   

Compensation analysis is vital to providing fair, equitable compensation, one of the key components necessary to attract and retain the best talent.  A regular and thorough compensation analysis provides the data and insights needed for critical decisions related to employee salaries.  This ensures that an optimal compensation budget is developed and allocated efficiently, which can have a considerable effect on the company’s bottom line.

The Compensation Planning Process

In the planning process, some companies rely on home grown spreadsheets and databases for calculating and analyzing compensation planning data.  Some months before the final budget is due, employee data is extracted from the payroll system.  The data are analyzed to project the costs of an overall annual salary increase, which may include merits, internal equity, and market adjustments.  Additionally, those spreadsheets are used to forecast commissions, bonuses, and incentives, and to perform cost analyses based on various what-if scenarios.  While spreadsheets can be a great tool, they lack critical functionality and scalability.  The analysis process using spreadsheets is cumbersome, requiring manual manipulation of large amounts of quickly outdated data.

This process is also rife with the possibilities of human error – overwriting formulas (even protected cells), entering the wrong information, adding or deleting columns/rows, etc.  Even with sophisticated queries, macros, and pivot tables, last minute changes and updates can compromise the integrity of the data.  This responsibility usually falls on a generalist with competing priorities that make it difficult to create and maintain the integrity of the spreadsheet and then take an analytical and objective review.  The spreadsheet process usually involves a Compensation or HR team member parsing data into individual spreadsheets, which are then emailed to managers for recommendations.  After the spreadsheets are returned, they are reviewed to identify and fix any errors, recalculated with changes tracked, and consolidated into one spreadsheet for overall review. 

Market analysis requires linking external data to make informed decisions about job offers, determine salary compression, and evaluate if salaries are keeping pace with competitors for labor. A company needs extensive data to determine how it is doing, which involves calculating position in range, compa-ratio, external competitiveness, internal equity, fair pay analyses, geographic differentials, and levels.  Any resulting compensation changes must then be communicated with the payroll department, most likely using another spreadsheet with all the same risks for error.  Communication of changes is accomplished by merging a Word document with the spreadsheet and distributing it to managers and ultimately employees.  Compensation continually changes based on both the internal and external environment, and this methodology is cumbersome at best.  It is pretty clear that spreadsheets fall short of what is needed to effectively manage compensation planning.  Given the business impacts at stake, organizations have a compelling case for investing in a compensation management solution. 

Why You Should Use Compensation Management Software

With the right automated compensation software in place, HR and compensation teams can shift from a tactical approach to more strategic efforts, including improving the quality of manager decisions regarding compensation.  It allows timely refinement of a compensation strategy.  Beyond the immediate value to HR and compensation teams, automated compensation management solutions can optimize productivity and provide real-time results for salary planning. Managers are able to review their direct reports, accessing comparators both internally and externally.  They can immediately see the impact of decisions to not only their team, but also the organization as a whole.  Transparency of decisions can often curb one-off decisions made in a silo. 

Compensation management software can link directly to the payroll system using automated tools like ERI’s HRIS integration, so real-time updates to the employee population allow for meaningful what-if analyses, as well as an understanding of the financial impact of salary adjustments, merit increases, fair pay analyses, projected bonuses, and incentives.  It allows agility, flexibility, and visibility – one can clearly see where there are equity and compression issues.  As with most data-driven approaches, better decisions are possible.  With the help of compensation planning tools, companies can get a clear picture, spot areas for improvement, and understand and evaluate the effectiveness of their compensation strategies.  It is important to develop an auditable compensation planning process that is transparent.  Extensive reporting capabilities also provide a more convenient way of analyzing information. For example, ERI’s Compensation Management platform includes an array of reporting options, such as the new Employee Pay Alignment report that helps users easily update employee compensation to align with market data, pay grade midpoint, or pay grade range. The Total Rewards Statement is another popular report that provides a complete breakdown of pay for an individual employee, including current base, incentive, and long-term compensation, plus benefits, with employee and employer contributions for each benefit option.

Compensation management software helps businesses streamline and automate their compensation planning process.  It accomplishes this by optimizing budget allocations and aligning compensation decisions with an organization’s guidelines.  Compensation has become much more complicated than it once was.  Strategic compensation planning must maximize the effectiveness of the budget for each employee and department, while providing compliance and governance to ensure that employees are not only compensated fairly, but also motivated and engaged. 

ERI’s Salary Assessor provides a Compensation Management solution that walks you through the planning and implementation of your organization’s compensation plan. From defining pay grades and planning employee benefits to incorporating your salary surveys and managing total rewards, ERI’s Compensation Management platform gives you a complete picture of employee compensation. Combined with ERI’s robust salary survey database, this application provides all of the necessary resources to develop comprehensive and competitive compensation strategies that help attract and retain top talent and allocate rewards responsibly and fairly.  The investment in a reliable compensation management solution is worth it and can have a considerable positive effect on organizational success.