Guide To Compensation Consulting Services With Payfederate

Introduction

A compensation management platform designed for professionals to efficiently BUILD, MAINTAIN, and USE compensation projects, including job descriptions, job architecture, salary ranges, and benchmarking. For most organizations, partnering with a compensation consultant is more effective and cost-efficient than handling everything in-house. This guide demonstrates how Payfederate empowers consultants to elevate their practice and deliver greater value to clients.

Ways To Work With Payfederate

Engagement Options
Engagement OptionDetailsTypical UseModules
Reusable Instances Consultant-owned reusable access for project work across multiple clients, with optional read-only client access for collaboration and validation. Recurring project work across multiple clients Job Pricing, Job Descriptions, Job Architecture
Ongoing Client Subscriptions Dedicated client subscription managed by the consultant for ongoing compensation services, with full client access. Ongoing managed services for a specific client Job Pricing, Job Descriptions, Job Architecture, Offers & Statements
Project Module Access Purchase only the module(s) needed for each client project, with access dedicated to that project. Project-specific needs using selected modules Job Pricing, Job Descriptions, and/or Job Architecture – selected per client project
Referral Refer the client directly to Payfederate. Client or prospect interest beyond the current consulting engagement Based on the client’s chosen subscription

Ways To Work With Payfederate

ModulesWhat It DoesPlatform Capabilities
Job Pricing

Job Matching – AI-match jobs to multiple survey jobs, create composite market targets, and leverage managed survey, job posting, and adjacent internal job data.

Pay Structure Design – Build salary ranges and pay structures manually or with regression models; analyze employee placement, compression, and merit or market adjustments.

Job Catalog Management – Maintain job codes, titles, descriptions, and related job information in a centralized catalog.

Included with every module:

Reports – Generate one-click reports for survey submissions, survey comparisons, and user-defined reporting needs.

Analytics – Explore scenarios and analyze pay structures across gender equity, geographic differentials, compa-ratios, range penetration, and more.

Practical AI – Built-in AI that reduces manual work, improves consistency, and accelerates compensation workflows across the platform.

Connected Workflows – Job architecture, market pricing, job descriptions, and compensation workflows operate in one connected environment.

Enterprise Security – SOC 2 controls and security practices help protect organizational and employee data.

Role-Based Access Control – Control access by user role so employees see only the data and functionality appropriate to them.

Flexible Data Export – Export tables, data, and visual outputs for use in presentations, analysis, and downstream workflows.

Job Descriptions

AI-Assisted Creation – Create consistent job descriptions using generative AI, templates, architecture details, and user inputs.

Harmonization & Leveling – Harmonize similar roles and align jobs to career stages and levels.

Policies & Discrepancies – Apply organizational policies and identify inconsistencies across job descriptions.

Job Architecture

Creation & Mapping – Build and modify job architecture and map jobs within flexible function and hierarchy structures.

Approval Workflow – Manage architecture changes through structured review and approval.

Career Stages & Leveling – Define career stages and levels to support consistent progression and career paths.

Offers & Statements Included at no additional cost with full Payfederate subscriptions. Supports offer modeling, total rewards statements, employee letters, internal equity review, and visibility into base pay, STI, LTI, and benefits.
Job Pricing

Job Matching – AI-match jobs to multiple survey jobs, create composite market targets, and leverage managed survey, job posting, and adjacent internal job data.

Pay Structure Design – Build salary ranges and pay structures manually or with regression models; analyze employee placement, compression, and merit or market adjustments.

Job Catalog Management – Maintain job codes, titles, descriptions, and related job information in a centralized catalog.

Job Descriptions

AI-Assisted Creation – Create consistent job descriptions using generative AI, templates, architecture details, and user inputs.

Harmonization & Leveling – Harmonize similar roles and align jobs to career stages and levels.

Policies & Discrepancies – Apply organizational policies and identify inconsistencies across job descriptions.

Job Architecture

Creation & Mapping – Build and modify job architecture and map jobs within flexible function and hierarchy structures.

Approval Workflow – Manage architecture changes through structured review and approval.

Career Stages & Leveling – Define career stages and levels to support consistent progression and career paths.

Offers & Statements
Included at no additional cost with full Payfederate subscriptions. Supports offer modeling, total rewards statements, employee letters, internal equity review, and visibility into base pay, STI, LTI, and benefits.
Platform Capabilities

Included with every module:

Reports – Generate one-click reports for survey submissions, survey comparisons, and user-defined reporting needs.

Analytics – Explore scenarios and analyze pay structures across gender equity, geographic differentials, compa-ratios, range penetration, and more.

Practical AI – Built-in AI that reduces manual work, improves consistency, and accelerates compensation workflows across the platform.

Connected Workflows – Job architecture, market pricing, job descriptions, and compensation workflows operate in one connected environment.

Enterprise Security – SOC 2 controls and security practices help protect organizational and employee data.

Role-Based Access Control – Control access by user role so employees see only the data and functionality appropriate to them.

Flexible Data Export – Export tables, data, and visual outputs for use in presentations, analysis, and downstream workflows.

Payfederate Vs Spreadsheets

Most compensation consultants create broad-based pay structures and benchmark salaries using complex spreadsheets. However, spreadsheets pose several challenges:

Limited scenario comparison

Adjusting job architecture, salary ranges, or benchmark data requires recalculating or duplicating spreadsheets.

Steep learning curve

Spreadsheets demand extensive training, complicating team collaboration.

Client intimidation

Clients often struggle with spreadsheets, requiring consultants to reformat data for validation.

Payfederate For Core Compensation Services

Payfederate offers spreadsheet-like flexibility while addressing these issues. By leveraging Al, it streamlines tedious compensation tasks and enhances consulting practices in two key areas:

Efficiency

Enhanced Client Experience

Using Payfederate To Expand Ongoing Services

While many compensation consultants focus solely on building new or overhauling existing pay structures, Payfederate enables them to extend their services to maintaining and empowering clients to use these structures effectively. This section outlines how to deliver ongoing MAINTAIN and USE services.

Elements Of Ongoing Compensation Services

With Payfederate, consultants can offer recurring revenue services, providing

Elements Of Ongoing Compensation Services

With Payfederate, consultants can offer recurring revenue services, providing

Delivery Type
Key Capabilities
Consultant-Driven: MAINTAIN
Updating survey benchmarks: Assess market changes, update job matches, and identify new pay ranges.
Job architecture refresh: Adjust architecture due to strategy shifts or market conditions.
Consultant-driven or self-service: MAINTAIN/USE
Merit cycle scenarios: Provide optimal merit increases and market adjustments.
Creating a new job: Generate job descriptions and place jobs within the architecture.
Pricing a new job: Benchmark externally, evaluate internally, and set market targets.
Self-Service: USE
Employee communication: Employees access "My Pay" to view total rewards (base pay, STI, LTI, benefits).
Offer management: Recruiters and managers analyze new hire offers.
Job pricing reports: View market pricing and realtime job postings for insights.
Job architecture: Share career paths and levels to support talent development.
Reports and analytics: Track key metrics like gender equity, compa ratio, and range position with interactive analytics.

Marketing Example

The following is an example of how a Payfederate consulting customer could market a service offering based on the software. This is just an example – consultants can bundle many other services with Payfederate software, including executive comp, incentive plan design, and other services. Payfederate is just an ingredient in a more comprehensive solution for consulting clients.

Amplify Your Impact With Our Always On Compensation Support Plan

In today’s dynamic labor market, evaluating compensation just once every few years is no longer enough. After your initial project, you’ll have clear job descriptions, a flexible job architecture, and competitive, fair salary ranges. This foundation will empower you to recruit, retain, and develop talent with confidence. However, as your business evolves, so will your compensation needs. New roles may emerge, market conditions may shift, and your compensation strategy may need to adapt. These gradual changes can affect your ability to drive business results if left unchecked. That’s why [Consultant] offers the Always On Compensation Support Plan—an annual subscription to ensure your compensation strategy stays aligned with your business goals.

Plan Features