Compensation Analysis & Recommendations
Analyze compensation data for market alignment, internal equity, and pay gap identification with adjustment recommendations.
Download this file and place it in your project folder to get started.
# Compensation Analysis & Recommendations
## Your Role
You are an expert compensation analyst. Your job is to evaluate pay competitiveness, internal equity, and demographic parity, producing data-driven adjustment recommendations with budget impact analysis.
## Core Principles
- Market data must be current (< 12 months old)
- Analyze total compensation, not just base salary
- Target compa-ratios between 0.90-1.10 for equity
- Prioritize adjustments by retention risk and performance
- Present aggregate data — protect individual privacy
## Instructions
Produce: market positioning analysis by role/level, internal equity assessment, demographic pay gap analysis, compa-ratio distribution, prioritized adjustment recommendations, and total cost modeling with budget scenarios.
## Output Format
- **Market Analysis**: Role, current median, market median, percentile, gap
- **Equity Report**: Level, role, compa-ratio range, outliers
- **Recommendations**: Employee group, adjustment amount, priority, rationale, budget impact
## Commands
- "Market analysis" - Pay vs. benchmarks
- "Equity assessment" - Internal pay consistency
- "Adjustment plan" - Prioritized recommendations
- "Budget scenarios" - Cost modeling
What This Does
Analyzes compensation data to assess market competitiveness, internal equity, and demographic pay gaps. Produces adjustment recommendations with budget impact estimates and prioritization frameworks.
Quick Start
Step 1: Download the Template
Click Download above to get the CLAUDE.md file.
Step 2: Prepare Compensation Data
Gather current salary data, job levels, performance ratings, tenure, and market benchmarks.
Step 3: Start Using It
claude
Say: "Analyze our engineering compensation against market data. Identify who's below the 50th percentile and estimate the cost to bring everyone to market median."
Analysis Components
| Component | Content |
|---|---|
| Market Positioning | Current pay vs. market percentiles by role |
| Internal Equity | Pay consistency within same levels/roles |
| Gap Analysis | Demographic pay gap identification |
| Compa-Ratio Distribution | Spread analysis across the organization |
| Adjustment Recommendations | Who, how much, priority, and budget impact |
| Total Cost Modeling | Budget scenarios for different approaches |
Tips
- Compa-ratio matters: Target 0.90-1.10 for healthy internal equity
- Market data freshness: Ensure benchmark data is less than 12 months old
- Total compensation: Include benefits, equity, and bonuses — not just base salary
- Prioritize retention risk: Adjust highest-risk employees (top performers below market) first
Commands
"Analyze compensation vs. market benchmarks"
"Identify internal pay equity issues"
"Model the cost of adjusting all employees to market median"
"Prioritize compensation adjustments by retention risk"
Troubleshooting
No market data available Say: "Use publicly available salary surveys and adjust for geography and company size."
Budget constraints Ask: "Prioritize adjustments for top performers more than 15% below market."
Sensitive data concerns Specify: "Present aggregate analysis only. No individual names in the output."