How Kyocera SGS Precision Tools Reduced Costly One-Off Pay Decisions With A Compensation Analysis & Strategy
Kyocera SGS Precision Tools is a manufacturing organization with multiple U.S. locations operating in very different labor markets.
Snapshot
Kyocera SGS Precision Tools is a manufacturing organization with multiple U.S. locations operating in very different labor markets. As the organization grew, adding locations and retaining employees longer, the team needed confidence that pay was consistent and competitive across the board, not just evaluated one position and decision at a time.
They wanted to move from one-off benchmarking to a consistent, market-based approach they could use for hiring, workforce planning, and internal pay equity.
Kyocera partnered with ERC to complete a market pricing study, build a structured base pay framework with geographic differentials, and review incumbent pay to identify where current pay aligned with the market and where internal equity might be at risk.
This project allowed Kyocera SGS Precision Tools to:
- Use structured ranges to guide new-hire offers and placements;
- Support workforce planning for growth roles;
- Bring greater consistency with pay decisions across sites and labor markets.
“I felt like when we were working on the project we were in partnership, they were working alongside us. A project like this can be so much extra work sometimes, but it just didn’t feel that way with this project.”
Loretta McKinley, SPHR
Chief Human Resources Officer, KYOCERA SGS Precision Tools
“When I was doing comps internally, some of the wages were spot on, and others, not so much. I said, ‘I think we should just do a comprehensive analysis so we can get a big picture view.’”
Loretta McKinley, SPHR
Chief Human Resources Officer, KYOCERA SGS Precision Tools
Background
Kyocera needed to make consistent, defensible pay decisions across a growing, multi-location workforce. Key challenges and considerations included:
- A need for a repeatable system: Leadership wanted a structure that could guide new hire offers and planning without constant negotiation or exceptions.
- Multiple labor markets: Roles with similar titles were being hired and managed across locations with very different pay differentials.
- Post-COVID market volatility: Higher wages could support short-term hiring, but risked creating long-term internal wage disparity.
- Internal, ‘one-off’ compensation requests: Pay reviews and “can you pull comps for this?” requests were happening more frequently, highlighting the need for up-to-date, accurate, and consistent market data across the organization, not piecemeal data pulled without any established cadence.
- Tenure-driven pay equity pressure: With many long-tenured employees, the organization needed to understand market competitiveness while avoiding pay compression or unfair internal disparity.
Our Approach
ERC built a compensation foundation Kyocera could use immediately then maintain over time.
1) Market pricing study
We analyzed base pay market data for over 100 roles using multiple proven data sources, and priced jobs across multiple geographic markets to reflect Kyocera’s multi-location footprint.
2) Base pay structure design and geographic differentials
We translated market findings into a structured base pay framework with job grades and salary ranges, then incorporated geographic differentials for higher-cost labor markets. The goal was to build a system that stays competitive locally while still protecting internal equity and consistency across the organization.
3) Incumbent pay analysis and high-level recommendations
We reviewed incumbent pay to identify alignment to external market data and internal peer groups, identifying areas where Kyocera was already competitive, and where long-tenured roles could create compression or equity concerns if left unaddressed.
4) A project that’s easy, responsive, and clear
We understand that busy HR leaders don’t have time to hold a compensation consultant’s hand. Throughout the engagement, ERC did the heavy lifting and supported decision-making by providing guidance and clear explanations so the project didn’t become an additional full-time job for Kyocera’s HR team.
“She [Nicole Doria] had knowledge that we just did not have internally and was thorough in providing a clear, accurate compensation plan. She was super flexible and very responsive.”
Loretta McKinley, SPHR
Chief Human Resources Officer, KYOCERA SGS Precision Tools
“I was able to say… ‘no, we’re actually really spot on with the wages.’… It’s fact-based. It’s not opinion-based. Now, when we’re doing workforce planning, I can say ‘this is what the market range should be.”
Loretta McKinley, SPHR
Chief Human Resources Officer, KYOCERA SGS Precision Tools
The Results
Kyocera came away with a compensation foundation they can use to make faster, more confident decisions without creating internal inequities like pay compression, inconsistent new hire offers, or unsupported widening wage gaps between locations.
What changed for the organization
- More confident workforce planning: Kyocera can plan for growth while placing new hires within a market-aligned range, staying competitive without creating internal disparity.
- Fewer “opinion-based” pay conversations: When wage review requests arise, HR can reference clear market data and structured ranges to explain decisions factually.
- Internal equity protection across sites: Kyocera reduced the likelihood of unfounded location-by-location pay differentials turning into long-term disparity.
- A clearer view of competitiveness: The project validated where Kyocera was already strong in the market and clarified where pay strategy, approach, and data needed updates.
- A relationship-based consulting experience: Kyocera described ERC as transparent, patient, and focused on what was best for their organization, not selling them a standard package.
Kyocera now uses the market data and pay framework as a reference point for pay review conversations anytime a request comes up. With consistent ranges and market benchmarks in hand, the team can validate whether pay is already aligned, avoid creating pay compression or internal inequities, and keep decisions consistent across locations.
Beyond individual pay conversations, the project allowed Kyocera to:
- Use structured ranges to guide new-hire offers and placements;
- Support workforce planning for growth roles;
- Bring greater consistency with pay decisions across sites and labor markets.
