Outline the jobs in the organization. This should include job title, responsibilities, value of those responsibilities to the organization, position rankings and tiers within each job area (entry level, experienced, supervisor, manager, etc.). Research the industry compensation rate for each job as a benchmark. Calculate the minimum, maximum and median amount for each job. Create pay ranges for each job. Using the industry rate you just calculated, compare it to your current compensation budget. Pay ranges should take into account the skill level required, the level of responsibility involved, the amount of authority in the role and years of experience in the job. Implement pay ranges across the company and communicate to employees about them. Since the pay ranges are applied equally and are based on specified criteria, they will be more fair than pay decided by managers on their own.