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Provide for Compensation Equity

Recognizing that the competitive market for employees in various job classifications is different depending on the member’s needs, our compensation model breaks down local labor forces by job and applies internal equity measures along with specific external market comparisons.

The system calls on multiple market databases to benchmark the correct competitive markets on the basis of where you actually hire and compete to retain your employees. The end result? Within the organization, jobs requiring the same levels of education, experience, knowledge, and responsibility are compensated consistently fashion.

Externally, the electric cooperative’s pay scales are competitive with appropriate job markets. The information provided by our compensation model is also a good fit for merit-based compensation and promotion schemes, since it helps managers and supervisors determine what a “fair” raise is for a given position within the co-op, taking performance into account.

Boost Employee Retention, Performance, Morale


It’s no surprise that employees who believe they are fairly and competitively compensated for the nature and quality of their work within the organization—and the industry at large—will be more committed to their current employer, experience higher levels of morale and fulfillment, and stay in their jobs longer. Because our model takes the geographical job market and overall co-op industry into account, salary ranges are guided by market trends. As a result, employees won’t be tempted to take their skills and their talents elsewhere. Co-ops using this compensation model will be better equipped to attract talented employees because they will be offering a competitive salary and benefits package.

Legal Protection

Co-ops using our model will have the information necessary to craft consistent hiring, compensation, and promotion practices across their organization. Employers that demonstrate a clear process and rationale in their compensation decisions will be less likely to face unnecessary legal consequences that can result from perceived unfairness.

Meet Your Needs Now and in the Future

Our model continues to grow in accuracy and functionality based on member recommendations and feedback to meet today’s challenges.

For more information, contact Delaine Orendorff, delaine.orendorff@nreca.coop, 571- 289-9023.