For Chief Human Resources Officers (CHROs), Chief Financial Officers (CFOs), and Chief Executive Officers (CEOs)
Is your current compensation strategy protecting your talent, or costing you money? Take a 2-minute compensation risk assessment questions below to find out today.
2-Minute Compensation Risk Assessment Questions
In today’s market, misaligned pay structures lead to quiet quitting, costly turnover, and compliance penalties. Take this quick 6-question assessment to uncover your organization's hidden compensation risks and get an instant risk assessment via a free 15-minute consulting service today.
Question #1
What has your voluntary turnover rate looked like over the past 12 months?
Low (Under 10%): Our team is highly stable, and we rarely lose key players. (0 points)
Moderate (10% - 20%): We are losing a steady trickle of good employees to competitors. (2 points)
High (Over 20%): We have a revolving door in critical roles and struggle to keep people. (4 points)
Question #2
When candidates turn down your job offers, what is the primary reason they give?
They rarely turn us down; our closing rate is excellent. (0 points)
They cite better overall benefits or flexibility elsewhere. (2 points)
They explicitly state that our base salary or commission structure is too low. (4 points)
Question #3
When was the last time your organization conducted a formal, external market benchmarking refresh for all positions?
Within the last 12 months. (0 points)
1 to 2 years ago. (2 points)
More than 2 years ago / Never. (4 points)
Question #4
How clear and structured is your internal job architecture?
Highly Structured: We have defined job families, clear pay bands, and objective criteria for promotions. (0 points)
Informal: We have titles, but pay ranges are flexible and often decided case-by-case during hiring. (2 points)
No Structure: Pay is entirely negotiated individually; employees with the same title have massive pay gaps. (4 points)
Question #5
How prepared is your organization for expanding state and federal pay transparency laws?
Fully Prepared: We routinely audit for internal pay equity and clearly communicate pay ranges. (0 points)
Somewhat Prepared: We are aware of the laws but haven't run a statistical audit to find gaps. (2 points)
Unprepared: We do not share pay ranges and worry about internal friction or legal exposure. (4 points)
Question #6
If you use variable pay (sales commissions, performance bonuses, or incentives), how well do they drive results?
Highly Effective: Bonuses are tied to clear output metrics that actively drive company profitability. (0 points)
Neutral: We pay them out regularly, but it feels like a fixed entitlement rather than a performance motivator. (2 points)
Inefficient/Broken: We are either overpaying low performers or our top earners are capped and frustrated. (4 points)
Scoring & Results
0 – 6 Points: Low Risk (Strategy Check-Up)
Your structures are solid. You are keeping pace with the market, but don't get complacent. An annual market refresh ensures your top performers stay right where they are.
8 – 16 Points: Moderate Risk (The Leaky Bucket)
Your compensation plan has blind spots. You are likely losing top talent to competitors who refresh their data more frequently, or you are highly vulnerable to internal friction regarding pay transparency.
18 – 24 Points: High Risk (Immediate Red Zone)
Your compensation structure requires urgent attention. Misaligned pay ranges are actively driving up your turnover costs, eroding profit margins via inefficient bonuses, or exposing you to significant legal and regulatory compliance risks.