Selected nonprofit experience
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A study answers one question: where is your pay program out of alignment?
Organizations usually commission a compensation study when they need evidence before changing pay—not simply because they want general compensation advice. The study establishes a current-state baseline, tests roles against relevant markets, and identifies where ranges, individual pay, or internal relationships need attention.
The output is a documented set of findings and priorities: which jobs are below or above market, where compression or equity issues exist, which ranges need recalibration, and which decisions require leadership or board review.
If your organization needs a broader compensation strategy, governance model, executive program, or ongoing advisory support, that belongs on JER HR Group’s nonprofit compensation consulting pillar. This page is specifically about the compensation-study engagement and its deliverables.
Your salary ranges are stale or inconsistent
Ranges may have been built at different times, with different market sources, or through individual negotiations. A study creates one comparable view of roles and range positioning before adjustments are made.
Hiring and retention decisions lack a market reference
When recruiters, managers, and HR are making pay decisions case by case, a compensation study gives them a documented market reference and shows where exceptions are becoming structural problems.
Leadership needs evidence before approving pay changes
A board or leadership team may need to understand market position, internal equity, budget impact, and role scope before approving range changes, market adjustments, or executive-pay decisions. The study packages that evidence for review.
What you receive from a nonprofit compensation study
The study is built around evidence and decisions. Scope can vary, but the core deliverables focus on job matching, market position, internal pay relationships, and the specific adjustments your organization needs to consider.
Also upcoming: Register for the September 17 nonprofit compensation webinar ➜
Job Architecture & Role Matching
We review actual job scope, reporting relationships, decision authority, and level—not just job titles—so each role is matched to the right benchmark before market pricing begins.
- Job description and role-scope review
- Level, reporting, and decision-authority calibration
- Benchmark-job matching by responsibilities, not title alone
- Roles requiring clarification before market pricing
Market Data & Peer Selection
We select relevant nonprofit, association, sector, geographic, and labor-market references based on the roles being studied and document why each source belongs in the analysis.
- Survey-source selection by role and labor market
- Nonprofit, sector, geography, and peer-group criteria
- Data effective-date and market-fit review
- Documented rationale for selected sources and peers
Market Position Analysis
For each benchmarked role, the study shows how current pay and salary ranges compare with the selected market references and where material gaps require review.
- Current pay compared with selected market references
- Salary-range midpoint, spread, and overlap analysis
- Roles materially above or below market
- Outlier and hard-to-fill role flags
Internal Equity & Compression Diagnostics
We test pay relationships across comparable roles, levels, managers and direct reports, new hires, and longer-tenured employees to identify compression or inconsistent positioning.
- Manager and direct-report pay relationship testing
- New-hire and longer-tenured employee comparisons
- Compression and inversion diagnostics
- Inconsistent positioning across comparable roles
Leadership Pay Review, When in Scope
When executive or leadership roles are included, the study isolates those positions for appropriate comparability analysis and board-ready review rather than blending them into staff benchmarks.
- Executive and leadership role-scope calibration
- Total compensation components included in scope
- Relevant leadership market and peer references
- Separate board-ready leadership findings
Findings Report & Action Priorities
The final deliverable organizes findings into actions: range changes, individual market adjustments, compression fixes, roles needing further review, budget implications, and sequencing recommendations.
- Priority findings by role, grade, or range
- Budget implications where adjustments are modeled
- Recommended sequencing and implementation priorities
- Items requiring leadership or board decisions
Common reasons nonprofits commission a compensation study
Organization-Wide Staff Study
Review a broad employee population when salary structures are outdated, exceptions have accumulated, or leadership needs a consistent market and internal framework for hiring, promotion, and pay decisions.
Discuss an organization-wide compensation study ➜- Full employee population and job-family mapping
- Market pricing across roles and levels
- Salary-range and grade consistency review
- Compression and internal-equity diagnostics
- Prioritized adjustment roadmap
Executive or CEO Compensation Study
Evaluate senior-leader roles, total compensation, relevant comparability factors, and the decision record needed by the authorized board or compensation committee.
Discuss an executive compensation study ➜- Executive role scope and total compensation review
- Leadership peer and market-source selection
- Executive-pay market-position analysis
- Board decision-support materials
- Separate executive findings and action priorities
Growth, Merger, or Restructuring
Reassess roles and pay relationships when organizational growth, consolidation, new programs, leadership changes, or restructuring has materially changed job scope and internal relationships.
Discuss a growth or restructuring study ➜- Re-map materially changed and newly created roles
- Compare legacy structures after growth or consolidation
- Identify duplicate, inconsistent, or unclear levels
- Reassess market position after organizational change
- Set transition and implementation priorities
Salary Range Modernization
Rebuild or recalibrate ranges when hiring managers rely on exceptions, job grades no longer match responsibilities, or the structure has drifted away from current labor-market conditions.
Discuss salary range modernization ➜- Review current salary ranges and grades
- Compare range midpoints with selected markets
- Analyze range spread, overlap, and level consistency
- Flag ranges that need recalibration
- Prioritize range changes for implementation
Pay Equity and Compression Review
Identify unexplained pay relationships, compression, inversion, or recurring retention adjustments and determine which issues should be prioritized within the organization’s available budget.
Discuss pay equity and compression analysis ➜- Compare pay across like roles and levels
- Detect compression and inversion patterns
- Review new-hire and tenure-related pay relationships
- Separate market pressure from internal structural gaps
- Prioritize issues for remediation planning
Board or Governance Review
Provide leadership and the board with a clearer market, budget, and documentation framework before approving material compensation decisions or updating governance practices.
Discuss a board or governance review ➜- Summarize market position for board review
- Separate executive and staff findings where appropriate
- Document peer and market-source rationale
- Show budget implications of priority adjustments
- Prepare decision-ready board materials
From Job Data to Decision-Ready Findings
A compensation study is analytical work with a defined start, data set, review cycle, and final deliverable. The workflow below is intentionally narrower than a full compensation consulting engagement.
1. Data Intake & Job Calibration
We collect job descriptions, organization charts, incumbent pay, range data, location information, and relevant policies. Roles are calibrated for level and scope before external matches are selected.
- Current job descriptions and organization chart
- Incumbent pay, salary ranges, and grades
- Work locations and relevant compensation policies
- Role-level and scope calibration before matching
2. Market Sources & Peer-Group Design
We determine which survey sources, sectors, geographies, organization characteristics, and labor markets are relevant for the roles in scope. The rationale for the peer set is documented before analysis.
- Survey sources selected for roles in scope
- Sector, geography, size, and labor-market criteria
- Data recency, sample fit, and job-match quality
- Documented rationale for peer and source selection
3. Market Pricing & Internal Equity Analysis
Each matched role is priced against the selected references. We then test current ranges and incumbent pay for market position, compression, outliers, and internal relationships that require review.
- Role-by-role market pricing
- Range and incumbent-pay market positioning
- Compression, inversion, and internal-equity testing
- Outlier and exception flags for further review
4. Findings Review & Action Plan
Findings are reviewed with HR and leadership for role-context accuracy, then organized into recommended actions, sequencing, budget considerations, and items that need board or executive review.
- Findings validated with HR and leadership
- Priority actions organized by impact and urgency
- Budget and sequencing considerations
- Leadership and board decision items separated
Questions about the compensation-study process
These questions focus on the scope, inputs, analysis, and deliverables of a nonprofit compensation study.
What is included in a nonprofit compensation study? ↓
A study can include job calibration, market pricing, peer and survey selection, salary range analysis, internal equity and compression diagnostics, leadership pay review when in scope, and a prioritized findings report. The exact scope is defined before data collection begins.
What information should we prepare before the study starts? ↓
Typical inputs include current job descriptions, organization charts, incumbent pay, salary ranges or grades, work locations, relevant compensation policies, and any known recruiting or retention concerns. Better source data improves the quality of job matching and analysis.
How are jobs matched to market data? ↓
Roles are matched by actual responsibilities, level, reporting relationships, decision authority, required expertise, and scope rather than title alone. Market sources are then selected based on the role, sector, geography, organization characteristics, and labor market.
Can a compensation study cover only selected jobs or executives? ↓
Yes. A study can focus on an entire workforce, a defined job family, hard-to-fill roles, leadership positions, or a single executive role. The scope should match the decisions the organization needs to make.
How are salary ranges evaluated during the study? ↓
Existing ranges are compared with the selected market references and reviewed for midpoint positioning, spread, overlap, consistency across levels, and alignment with current incumbent pay. The analysis identifies where ranges may need recalibration rather than assuming every range should move.
How does the study identify compression and internal equity issues? ↓
The analysis reviews pay relationships among similar roles, levels, managers and direct reports, new hires and longer-tenured employees, and other relevant internal comparisons. Findings are flagged for review so the organization can distinguish market pressure from internal structural issues.
What does the final compensation study deliverable include? ↓
The final file summarizes market position, range findings, internal equity or compression concerns, roles requiring additional review, recommended actions, sequencing, and budget considerations. Executive or board-review material can be separated where needed.
What happens after the compensation study is completed? ↓
The study provides the evidence and priorities for decision-making. JER HR Group can support implementation if needed, but broader compensation strategy, governance design, executive compensation consulting, and ongoing advisory work remain separate services from the study itself.
Related guidance for compensation-study decisions
Upcoming nonprofit compensation webinar: Compensation Begins Before Pay, September 17, 2026. Learn how job roles, pay, governance, and trust connect in a defensible nonprofit compensation strategy.
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Ready for a nonprofit compensation study your board can use?
- 40+ years of compensation consulting experience with 400+ nonprofit organizations across healthcare, education, social services, foundations, NGOs, and membership organizations.
- Each compensation study is led by a senior SHRM-SCP- or SPHR-certified consultant with direct nonprofit experience, from scoping and market analysis through findings review and implementation planning.
- Study findings can cover market benchmarking, salary structures, internal equity, executive compensation, budget impact, and board-ready decision support.
- Implementation support helps translate recommendations into salary ranges, policies, communication, budget priorities, and a practical ongoing review process.
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