How Third Sector transformed employee compensation satisfaction by 26%
Business challenges
Third Sector’s compensation team faced several hurdles:
Outdated model: Legacy pay system rewarded tenure over collaboration, contribution, or initiative.
Limited data: Based entirely on Boston market data despite being a fully remote workforce across the U.S.
Complex and unclear: The structure was difficult to understand, leaving employees without transparency into how salaries were determined.
Misaligned with values: The system failed to reflect core priorities like results, relationships, racial equity, respect, and reflection.
Outcomes and impact with Payscale
Third Sector transformed its compensation program, delivering:
Efficiency gains: HR moved away from dozens of spreadsheets, freeing time for strategic initiatives.
Equity in decisions: Transparent market data and streamlined benchmarks improved fairness in hiring and promotions.
Cultural change: Training for people leaders and a clear pay structure reduced disparities and fostered a culture of transparency.
Employee confidence: Satisfaction with compensation rose from 57% to 83% in the latest engagement survey.
“We worked with Payscale on benchmarking our positions and updating our salary structure to align with this shift. Payscale also conducted a presentation for our people leaders on how and why the changes were taking place. Those were huge milestones for the organization.”
Proven results
Third Sector realized measurable improvements with Payscale:
26% increase in satisfaction: Employee confidence in compensation rose from 57% to 83% after the new pay structure was introduced.
Faster decisions: 24-hour turnaround on salary benchmarks for hiring and promotions using Payfactors.
Greater efficiency: HR freed from spreadsheets, allowing focus on high-impact strategic initiatives.
Stronger equity: Pay decisions grounded in skills and experience created a more structured, fair approach.
“I feel like Payscale is my compensation team so I can do this work sustainably. If I wasn’t partnering with Payscale, there is no way that I would have been able to accomplish this compensation program overhaul.”
From success story to live discussion
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