Mastering Market Studies: A Guide for Public Sector Success

Webinar Recording

If you missed the live session or want to revisit the insights shared, the full recording is available here:

Watch the Webinar Recording

Why Market Studies Matter More Than Ever

In today’s competitive labor market, public sector agencies face mounting pressure to attract and retain top talent. Accurate market studies are essential tools that help agencies align their compensation structures with current labor trends, ensuring they remain competitive and equitable.​

Beyond the Midpoint: Evaluating the Full Salary Range

A common pitfall in compensation planning is focusing solely on aligning pay range midpoints with market medians. However, this approach can overlook discrepancies at the minimum and maximum ends of the salary range. For instance, aligning only the midpoint may still leave starting salaries uncompetitive, hindering recruitment efforts. Conversely, misaligned maximums can limit growth opportunities, affecting retention. A comprehensive evaluation of the entire salary range ensures a more balanced and effective compensation strategy.​

Understanding Salary Range Bandwidth

Salary range bandwidth—the spread between the minimum and maximum salaries—plays a crucial role in compensation planning. Agencies with narrower bands may struggle to offer competitive salaries, especially at the higher end, potentially leading to retention issues. Conversely, wider bands can provide more flexibility but may also introduce challenges in maintaining internal equity. Assessing and adjusting bandwidth in line with market standards helps agencies strike the right balance between competitiveness and fairness.​

Strategic Alignment with the Labor Market

Effective compensation planning requires a clear understanding of the relevant labor market. Agencies must identify appropriate market comparators and ensure their salary structures reflect these benchmarks. This strategic alignment enables agencies to set competitive starting salaries, offer meaningful progression opportunities, and maintain fiscal responsibility.​

Data-Driven Decision Making for Equity and Recruitment

Utilizing comprehensive market data empowers agencies to make informed decisions that promote equity and enhance recruitment efforts. By analyzing the full salary range and understanding bandwidth implications, agencies can identify and address potential disparities. This data-driven approach supports the development of compensation strategies that are both competitive and equitable, fostering a more engaged and satisfied workforce.

Looking Ahead: Implementing Effective Compensation Strategies

Building on the insights from this webinar, TrueComp and CPS HR are planning a follow-up session focused on the timing of compensation studies and the implementation of changes. This upcoming session will delve into best practices for integrating market study findings into budget planning and labor negotiations, ensuring that compensation strategies are both timely and effective.​