Making Pay Rates Equitable


The client had acquired several competitors over the years. Consequently, pay raises were determined using various subjective criteria and were based on a merit-based payment system.


Each acquired company was using a unique set of subjective criteria to determine merit pay increases. Current compensation criteria, personnel data,COLA and merit data were controlled at varying management levels throughout the company and were physically dispersed across several locations. The company's goal was to develop and implement an equitable, tenure-based compensation method thus eliminating subjective merit systems. A method that would be embraced by employees and management alike.


ADC consultants analyzed data from various sources throughout the company and identified a specific factors impacting current pay rates. The analysis presented pay scenarios and the impact each had on the bottom line. This analysis allowed management to select an equitable system, calculate tenure-based pay rates and incorporate the new rates into the payroll system.


The result was a level pay structure where like job responsibilities were compensated in a consistent fashion at all client sites. The new pay rate system was fully accepted by all parties within the company and deemed a complete success by management.