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HR's Role in Compensation Planning

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Compensation planning is a strategic human resources (HR) process that continues to play a crucial role in ensuring pay remains relevant and competitive in attracting, retaining, and motivating quality employees.

This process should occur during the annual budget cycle when budgets for the upcoming year are set and resources are allocated, including those for employee raises.

HR’s Role

Human resources’ role in compensation planning may include the following:

  1. Monitoring market and industry trends 
    • Reviewing salary surveys and market data to identify any gaps or emerging patterns
    • Staying informed about compensation trends within the industry, location, and specific job roles
  2. Benchmarking against competitors
    • Comparing employee pay with industry peers
    • Identifying gaps and prioritizing opportunities for improvement
    • Ensuring pay aligns with the overall objectives of the organization
    • Implementing solid pay practices that incentivize behaviors and outcomes instrumental in meeting the organization’s goals and success
  3. Conducting regular internal reviews for pay fairness and equity
    • Reviewing for pay equity and addressing notable discrepancies to safeguard against potential legal issues
    • Ensuring compliance with federal and state labor laws
  4. Making improvements
    • Annually revisiting and refining the compensation plan to address evolving market conditions and to remain responsive to internal and external changes such as new goals or changing workforce

Moving Forward

The role of compensation planning has emerged beyond a routine administrative task into a key HR function. Regular reviews and adjustments help ensure the compensation strategy aligns with the organization’s goals and pay remains market competitive within budgeted resources.

Whether managed internally by human resources or outsourced to professionals such as TASB HR Services, the proactive measures consisting of reviewing and adjusting the compensation plan are critical to this strategic process.   

TASB HR Services is here to help. Our consulting team annually works with 150 to 200 school districts and other educational entities to support their pay planning processes and efforts in attracting, retaining, and motivating employees. Reach out to HR Services at or 800-580-7782 for more information.

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Luz Cadena
Luz Cadena
Senior Compensation Consultant

Luz Cadena has worked as a compensation consultant with HR Services since 2006. Prior to TASB, she worked for a Central Texas ISD for eight years in the positions of compensation analyst, compensation coordinator, and director of compensation.

Cadena earned an associate degree in business administration from New Mexico State University, holds a bachelor’s degree in business management from Concordia University in Austin, and is a certified compensation professional (CCP).

HR Services

TASB HR Services supports HR leadership in Texas schools through membership offerings in specialized training, consulting, and other services.
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