Free Compensation Analysis Template & Examples for 2025

This guide introduces a structured compensation analysis template, and explains how organizations can use it effectively.

It includes a generic template and practical examples, showing how to evaluate salary, bonus, equity, and benefits data. 

The purpose is to make it easier for HR teams and managers to assess where compensation stands. When done well, compensation analysis promotes pay equity, supports talent retention, and reinforces a company’s commitment to transparency and fairness.

‍

‍

Generic Compensation Analysis Template

This template provides a comprehensive overview of a position’s compensation package, including all major components of pay.

‍

It ensures base salary, bonus, equity, and benefits are considered, since these are the key elements that make up total compensation​.

‍

It also includes fields for job title, job level, location, and a market data comparison to benchmark the compensation against industry standards (i.e., comparing the company’s pay to market averages).

‍

The template can be filled out for any role to facilitate fair, competitive, and equitable pay decisions.

‍

‍

In the above example, the “Market Data Comparison” field is used to note how the package compares to external market benchmarks. For example, noting if the total package is 5% above or below the market median for similar positions.

‍

Example Scenarios

Below are four example scenarios illustrating how to fill out the template in practice. Each scenario provides a filled-in table for a different context: a new hire offer, an internal equity check, a promotion adjustment, and a market adjustment.

‍

These examples demonstrate how the template can be applied to ensure compensation decisions are data-driven and fair.

‍

‍

Compensation Analysis Template for New Hires

Scenario: A new hire is being offered a Software Engineer II position. The company wants to ensure the offer is competitive to attract the candidate, using market data for San Francisco, CA.

‍

‍

In this new hire offer, the base salary is $120K with a 10% target bonus.

‍

The employee is also offered equity (RSUs) and a comprehensive benefits package.

‍

The Total Compensation comes to about $167K, which is roughly 5% higher than the market median for similar roles in San Francisco (approximately $160K).

‍

This competitive offer helps attract top talent while staying within a reasonable range of market rates.

‍

Compensation Analysis Template for Internal Equity Check

Scenario: An internal review for a Senior Data Analyst’s pay to ensure fairness. The employee is based in New York, NY. The company compares the analyst’s compensation to both internal peers and the external market to check for any discrepancies.

‍

‍

In this internal equity check, the Senior Data Analyst’s total compensation is about $99K.

‍

The base salary ($85K) plus a small bonus and benefits package is slightly below the external market median for similar roles in NYC (market base around $90K).

‍

Internally, this employee’s pay is in line with peers (no significant gaps with others at the same level).

‍

The review indicates a potential modest adjustment could be considered to bring the analyst closer to the market rate and ensure continued internal equity.

‍

‍

Compensation Analysis Template for a Promotion Adjustment

Scenario: An employee has been promoted from Marketing Manager to Senior Marketing Manager. We update their compensation to reflect increased responsibilities and to align with the market for the new role, while considering the typical promotional increase.

‍

‍

For this promotion, the employee’s base salary was increased by 10% (from $100K to $110K) to recognize their new Senior Marketing Manager role.

‍

The bonus target also increased to 15% of the base.

‍

An equity grant (stock options) valued at $10K per year was provided as part of the promotion. 

‍

The new Total Compensation is about $148.5K, which is in line with the market average for a Senior Marketing Manager in Austin ($150K). This adjustment ensures the promoted employee’s pay reflects their higher role and remains competitive externally and fair internally.

‍

Compensation Analysis Template for a Market Adjustment

Scenario: A mid-year market adjustment for a UX Designer II in Seattle, WA. A recent market study showed that the role’s pay was below the industry trend, so the company adjusts the salary to stay competitive and retain the employee.

‍

‍

In this market adjustment scenario, the UX Designer II’s base salary was increased from $88K to $95K (an increase of about 8%) outside the normal review cycle.

Previously, the employee’s pay was falling behind market rates. After the adjustment, the base salary is aligned with the market median for similar roles in Seattle (~$95K), bringing the total comp (about $105K including benefits) up to a competitive level.

This proactive pay adjustment helps correct any market lag and shows a commitment to fair compensation.

‍

How PerformYard Supports Compensation Analysis

PerformYard is a performance management and HR software platform that can streamline how you track and analyze compensation data.

‍

PerformYard allows HR to import or sync all pay information (salaries, bonuses, equity, etc.) from your HRIS into one system​. This provides a single, up-to-date view of each employee’s total compensation without juggling multiple spreadsheets.

‍

‍

The platform also links compensation with performance reviews, so you can easily track raises based on review scores and ensure high performers are rewarded fairly.​

‍

Meanwhile, managers can see an employee’s review feedback right alongside their pay info, making salary discussions much more informed and transparent.

‍

With built-in reports and dashboards, PerformYard makes it simple to spot compensation trends and gaps. You can quickly generate insights on pay equity, compare salaries across teams or against market benchmarks, and make data-driven decisions–all in one place.

‍

Schedule a demo to learn more and see how PerformYard can support your compensation strategy.