A compensation study is most effective when your organization is prepared. Use this checklist before launching your next compensation study to ensure you collect the right data and set clear expectations.
Internal Data
Gather up-to-date job descriptions that accurately reflect actual duties and responsibilities.
Compile complete salary schedules including all steps, ranges, longevity pay, and any special pay provisions.
Document all employer-paid benefits including premiums, contribution rates, retirement formulas, and leave accruals.
Ensure your org chart reflects current reporting relationships and classification structures.
Compile data on recent hires, departures, and hard-to-fill positions over the past 2-3 years.
Comparable Agencies
Establish criteria based on population served, budget size, geographic proximity, and services provided.
Cast a wide initial net to ensure you have enough candidates after screening.
Narrow to 10-12 agencies and get approval from leadership before data collection begins.
Identify the right contact person at each comparable agency to facilitate timely data collection.
Stakeholders
Ensure your executive team understands why the study is being done and what to expect.
Brief your governing body on the study scope, timeline, and anticipated budget for implementation.
In unionized environments, notify the union about the study and any potential impacts on bargaining.
Ensure your HR team has capacity to assist with job description reviews, data compilation, and comparable outreach.
Plan how study results will be shared with employees, the board, and unions.
Goals and Parameters
Document what you want the study to accomplish — market competitiveness, internal equity, classification restructuring, or all three.
Determine whether the study covers all positions or a subset (e.g., only non-represented or only public safety).
Develop a preliminary budget estimate for implementing compensation adjustments.
Set realistic milestones for kickoff, data collection, analysis, presentation, and implementation.
Clarify who has authority to approve and fund compensation changes.
Pro Tips
Time your study to align with your budget cycle
Implementation funding is easier to secure when study results are ready before budget development begins.
Include total compensation in your analysis, not just base salary
Benefits often represent 30-40% of total compensation. A salary-only comparison can be misleading.
Get union buy-in on comparables before the study starts
Agreed-upon comparables eliminate the most common objection to study findings.
Plan for implementation before you start the study
Studies without implementation plans waste money. Know how you will fund and phase in changes before commissioning the work.
Frequently Asked Questions
Costs vary based on the number of positions and comparables, but most public-sector studies range from $15,000 to $75,000 depending on scope and complexity.