5 Steps to Get Started with a Salary Analysis
Before you set next year’s raises, make sure your pay ranges are grounded in reality. The five steps below show how to align roles, compare to market data, evaluate equity, and model scenarios – with a template you can copy.
1. Gather your data.
Pull current salary information, job titles, start dates, and performance levels. Be sure to include bonuses, commissions, and benefits for a complete picture of total compensation.
➡️ Access our free template here.
2. Organize by role and responsibility.
Group positions by function and level (e.g., entry, mid, senior). This helps identify pay gaps or inconsistencies within similar roles.
3. Benchmark against the market.
Compare your internal data to credible salary benchmarks—think industry reports, regional data, or compensation tools like Payscale or Radford. Note where your pay ranges fall above or below market averages.
4. Evaluate pay equity and progression.
Look at compensation across gender, tenure, and performance. Identify where adjustments may be needed to maintain fairness and retention.
5. Model future scenarios.
Use your findings to forecast the cost of raises, bonuses, or new hires. Scenario planning now makes budget season smoother and ensures alignment with your 2026 goals.
