Compensation Planning: Navigating the Waters Without Attracting the Sharks
This year marks the 50th anniversary of Steven Spielberg’s summer hit, Jaws, based on Peter Benchley’s novel of the same name. I am not ashamed to say that this is one of my all-time favorite movies. It was also the first movie I saw in theatres, even though I was an infant at the time, so I don’t know if that says more about me or my mother. Regardless, when I was asked to prepare a blog on compensation management this month, it challenged me to think how quickly and quietly salary program mis-steps can come up when you least expect, with nary a bit of John Williams’ accompanying score.
So bear with me — When it comes to compensation planning, it’s easy to focus on the surface—salary ranges, benefits packages, and bonuses. But just beneath that calm exterior, unseen risks lurk, ready to cause chaos if not carefully managed. Much like the infamous shark in Jaws (unnamed in the movie but Bruce to his colleagues), compensation missteps can strike when you least expect them, turning an evening swim into a crisis.
The Opening Scene: Tranquil Waters (or So It Seems)
At the start of the movie, Amity Island enjoys a sense of normalcy. Businesses are thriving and preparing for summer season, people are content and enjoying bonfires, and everything seems peaceful—until a monster problem emerges. We can’t really blame the people of Amity for not preventing the shark from swimming into their waters. However, in organizations, failing to proactively review compensation structures can lead to inequities, employee dissatisfaction, and even legal troubles. Things may look fine, but management needs to be proactive to prevent major problems.
Spotting the Dorsal Fin: Early Warning Signs
Just like Chief Brody catches glimpses of the shark before disaster strikes, management needs to watch for red flags. Are employees expressing concerns about pay equity? Is turnover increasing? Are salary structures outdated compared to the industry? Does the company even have salary structures? The earlier you spot these warning signs, the better your chances of avoiding catastrophe.
Two Approaches: The Quint vs. Hooper Strategy
When trouble arises, two distinct problem-solving styles emerge—the Quint approach and the Hooper approach. Each has its place, and the best strategy often lies in blending them.
The Quint Approach: Experience and Instinct
Quint is a seasoned fisherman and shark hunter. He relies on his instincts, past experience, and hands-on tactics to deal with a crisis. In HR, the Quint Approach translates to using tried-and-true compensation strategies—benchmarking salaries based on industry standards, relying on historical pay trends, and trusting leadership’s wisdom in structuring pay scales. This approach values real-world expertise but may lack the agility needed in a fast-changing market.
The Hooper Approach: Data and Innovation
Hooper, on the other hand, is an oceanographer who brings science, technology, and fresh perspectives into the fight against the shark. The Hooper Approach in compensation planning focuses on leveraging analytics, conducting salary surveys, and using data driven insights to create dynamic and equitable pay structures. This strategy ensures competitiveness and fairness but may lack the intuitive human touch that comes from years of experience.
I often tell clients that compensation planning is a mix of art and science. The science is the data collection and metrics –collecting the salary surveys and market trends. The art is determining how they apply to your organization. Are you going to match the market or lead it? Do you want to build ranges within your organization and be transparent about career growth opportunities? What kind of incentive structure do you want to build – based on total revenue or personal key performance indicators, or both?
The Mayor Factor: Leadership Blind Spots in Compensation
One of the most frustrating figures in Jaws is Mayor Vaughn. Despite clear warnings from Chief Brody and expert advice from Quint and Hooper, he refuses to acknowledge the growing danger until it’s too late — leading to avoidable tragedy.
In many organizations, upper management can behave in a similar way when it comes to compensation planning. Managers and HR professionals raise concerns about pay equity, turnover rates, and outdated salary structures, yet leadership may hesitate to take action. They can focus on short-term optics rather than long-term sustainability, hoping to avoid discomfort or expenses—until the situation reaches a breaking point. Mayor Vaughn’s “no need to do anything until we have to” and “just 24 hours approach” can be seen when leadership waits too long to address salary inequities and/or distributes unpredictable bonuses in a pinch, then ends up losing great employees.
That’s Right – You’re Gonna Need A Bigger Boat: The Need for Adjustments
Actor Roy Scheider made movie history when he famously ad-libbed one of the most iconic lines in the film, “You’re gonna need a bigger boat.” In HR, this translates to revising compensation strategies to meet evolving workforce expectations. Whether it’s adjusting salary bands, improving benefits, or offering new incentives, organizations must be prepared to scale their efforts and adapt, and often that means an investment in a bigger boat.
The Final Showdown: Resolving the Issue Before It Bites Back
At the final climax of Jaws, the shark is defeated—but only after significant loss. Avoiding a compensation disaster means staying ahead of problems before they escalate. Regularly evaluating pay practices, ensuring transparency, and fostering open dialogue can keep your workforce engaged and prevent costly mistakes.
Conclusion: Keeping the Beach Open (Safely!)
Just as Amity Island eventually regains control and ensures safety for beachgoers (until the sequel – but remember, Mayor Vaughn was still leading the town, so another catastrophe was bound to happen…. Despite the previous disaster, he remains in power, continuing his pattern of denial and delay. In the corporate world, leadership that ignores compensation warnings can stay entrenched as well, perpetuating cycles of employee dissatisfaction, retention struggles, and reactive rather than proactive pay strategies. So, be sure to learn from your mistakes.)
Management teams that approach compensation planning strategically—combining the instinct-driven Quint Approach with the data-driven Hooper Approach under the Let’s Just Conquer the Thing Leadership of Brody—can maintain a thriving workforce. By staying proactive, addressing concerns head-on, and making informed adjustments, businesses can create fair, competitive compensation structures that retain talent and avoid unwelcome surprises.
However, no one should go it alone. Even Chief Brody, who had the right instincts, needed help from both Quint and Hooper to solve the town’s crisis. The same is true in HR—effective compensation planning requires collaboration between experts in market trends, legal compliance, and workforce strategy. Bringing in specialists, relying on data-driven tools, and fostering open dialogue across leadership ensures companies avoid costly mistakes and stay ahead of evolving employee expectations.
Because when it comes to compensation, you don’t want to be stuck in the water unprepared.
June 12, 2025
Paula Agee, SPHR, SHRM-CP, VP of Human Resources and Chief People Officer