Comparable Group – Who to Include in the Compensation Comparison
A comparable group consists of positions for which the company can demonstrate that they involve the same work or work of equal value. When comparing compensation, this allows you to identify what the roles have in common, even if they have different titles or report to different managers.
How to Form a Group
Take the descriptions of the actual work performed and evaluate them based on common criteria. Identify the required knowledge, responsibilities, physical demands, and working conditions.
How to Explain a Group’s Boundaries
Select one borderline case. Can you use specific examples to show why it belongs to the group, or in what ways its characteristics differ significantly?
The Same Name at Two Branches
Both branches employ a “service coordinator.” At one branch, the coordinator schedules service calls; at the other, the coordinator is also responsible for ensuring the safe receipt of equipment. HR will request a detailed description of the scope of these responsibilities. Based on the results of this assessment, HR will decide whether both positions should be included in the same job comparison.
What if two comparable roles receive different compensation?
It makes sense to analyze exactly this kind of discrepancy. First, verify the work schedule, period, and components of compensation; then, review the rules according to which the amounts were determined.
The value of the work is essential for defining the group. Once you know who you’re comparing, you can calculate the pay gap between women and men within the group.
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Which positions can you compare?
Select two roles where you’re unsure about their classification. In this example, we’ll discuss how to link their job descriptions to a compensation comparison in SmartFP.
