Consulting & Services Division, Large Defense Contractor

Our client, the consulting and services division of one of the United States largest Department of Defense contractors, had worked with consultants for a number of years on their compensation strategy and program design. So they turned to us again when it came time to cost-effectively update their base pay program for over 3,000 employees across the United States, ensuring its continued compliance with FAR and DCAA regulations.

We first worked with HR leadership, BU Heads and Program Directors to define specific labor markets for comparison and identify any particular competitiveness issues that should be further investigated. We developed a market benchmarking strategy from these discussions and selected those surveys and resources form our library of over 100 publications that fit the strategy. For those competitiveness issues articulated by our client but not clearly covered in published surveys – bay pay differences for cleared personnel for example – we enlisted the help of our network of colleagues and clients in the sector to fully understand current market practice.

Using our proprietary technology and time-tested processes, we quickly developed market rates on over 100 job family career levels that covered over 500 client- and contract-specific job titles in 17 different geographic markets. We used these data to update our client’s base pay ranges, annual increase budgets and annual incentive targets. We updated and further refined their compensation administration manual to fully document the job analysis approach, job evaluation system, market strategy, job grading system and pay administration policies.

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