Michael Dressler, Director of Business Development, Payfederate
Getting compensation right is more than just keeping up with the market. It’s about ensuring fairness, clarity, and alignment — across every level of your organization.
For many growing businesses, that means working with a compensation consultant.
But not all consultants are created equal.
From project delivery models to technology enablement, the way your consultant operates will directly impact the results you get. Here’s what to look for before you make the hire.
1. Clarity in Scope and Outcomes
One of the most important early steps in a compensation consulting engagement is how the work is scoped and priced.
While time-and-materials models are still common — especially for open-ended or evolving projects — they can sometimes be harder to manage if there isn’t a clear definition of deliverables. In contrast, outcome-based or project-based pricing can offer more predictability when the goals are well defined, helping both sides stay aligned on delivery, timeline, and impact.
Ultimately, the right pricing model depends on how clearly the needs are understood upfront. Being transparent about scope, expectations, and internal decision-making cycles can help ensure the engagement runs smoothly — regardless of how it’s billed.
2. A platform-first delivery model
Today’s compensation strategy shouldn’t live in static spreadsheets. As your organization evolves, so will your pay structures, job levels, and market benchmarks. Look for consultants who don’t just deliver recommendations — but operationalize them in software.
A platform-first approach enables HR and compensation teams to:
- Maintain and evolve pay structures over time
- Easily onboard new roles and job families
- Integrate compensation benchmarking data
- Build in salary transparency as needed
This is especially important for mid-sized businesses that need to move quickly while keeping compensation fair, scalable, and compliant.
3. Clarifying Access to Market Data
Market benchmarking is a key component of most compensation strategies — but how that data is sourced can vary.
Before engaging with a consultant, it’s worth clarifying: Will benchmarking data be included as part of the engagement, or will you need to source it separately?
Some consultants provide built-in access to benchmarking datasets, while others work with the data you provide or help you select the right sources. Both approaches can work — the important thing is understanding what’s included and how data will be used to inform your pay strategy.
By setting expectations upfront, you can ensure your compensation decisions are grounded in data that aligns with your industry, workforce, and goals.
4. The Right Fit for Your Focus
Compensation management isn’t one-size-fits-all — and neither is the type of consultant you choose.
If your organisation is driving a broader HR transformation that includes areas like recruiting, compliance, or learning and development, a full-service HR firm can offer the advantage of keeping your compensation strategy aligned with other talent initiatives.
On the other hand, if your immediate focus is purely on compensation — such as building frameworks, updating pay structures, or improving internal equity — a specialized compensation consultant may bring deeper expertise and faster impact.
Either way, the key is choosing a partner whose strengths match your goals. The best consultants — whether niche or broad — understand how to balance compliance, culture, and strategic impact in a way that fits your organisation’s unique needs.
5. Support that goes beyond implementation
Compensation isn’t static. New roles emerge, market rates shift, and internal equity needs to be maintained over time. That’s why it’s important to work with a consultant who offers more than a one-time setup.
Ongoing support models typically include:
- Updates to job families and titles
- Refreshes of compensation benchmarking data
- Adjustments for new market conditions
- Periodic audits to ensure continued equity and competitiveness
This kind of ongoing partnership ensures your compensation strategy keeps pace with business growth — and doesn’t become outdated after six months.
6. The right questions to ask
Choosing the right compensation consultant isn’t just about their background. It’s also about how they approach the work. Some useful questions to ask before you begin:
- Do you charge hourly or by project?
- Will our strategy be delivered in a software tool or just documents?
- Is compensation benchmarking data included?
- What does post-implementation support look like?
- Do you specialize in compensation or offer it alongside other HR services?
- How do you handle job architecture and leveling?
The answers will help you evaluate both fit and long-term value.
Building a partnership that scales with you
Compensation strategy is foundational to how people are hired, promoted, and retained. Getting it right requires more than good advice — it requires the right delivery model, tools, and data.
Working with a skilled compensation consultant can help you translate principles into practice — without overwhelming your team. And with the right model in place, your strategy becomes something you can sustain, not just launch.
Looking for a place to start? Explore the most comprehensive directory of compensation consultants at consultingdirectory.payfederate.ai. You’ll find consultants across every industry and operating model — so you can choose what works best for your team.
