As pay transparency becomes the norm in some of the country’s largest job markets, many companies are revisiting their compensation policies. But as Payscale’s VP of people Lexi Clarke explains, redesigning compensation shouldn’t start with external job descriptions. “​​The first step that leaders must take as a company is making sure they feel really confident in their current salary structure,” she says.

How do you make sure your internal pay structures, like salary bands and job levels, are where they need to be?

Fundamentally, the process is about “​​understanding what your organizational framework looks like and how individual roles play together with other roles within the organization, and how they'll continue to scale as the organization continues to grow,” says Clarke. It requires top leadership to work together with middle managers to define career ladders, determine salaries based on market data and internal business needs, and communicate changes effectively to employees at every level of the organization.

Here’s where to start.

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