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Pay Compression Tester

Is your pay structure squeezing itself? Test manager premiums and new-hire compression in seconds, free.

Test 1: Manager vs highest-paid direct report

Test 2: Tenured incumbent vs new hire (same role)

Optional: market context

Rules of thumb used here reflect widely used HR practice: supervisors typically earn at least 10 to 15 percent more than their highest-paid direct report, and tenured incumbents typically hold roughly a 3 percent premium per year of role tenure over otherwise-equal new hires. Fill in whichever test you have numbers for.

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