In terms of total employee costs, base salary represents the largest component of the pay package and can consist of short and long-term incentives, qualified and non-qualified benefits and other non-cash items.

Base salaries represent a "fixed" rather than a "variable" cost and therefore it is very important that they reflect accurately the position the employer wishes to adopt in the market place. Base salaries that are not appropriate can also have an adverse effect on the incentive payouts that are often calculated as a percentage of base.

Monterey Benefits, LLC can assist organizations in evaluating base salaries from an internal and external perspective, through its partner, The Analytical Consulting Company.