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Introduction 7 Guidebook Organization The Guidebook has the following sections: Section 2, Wage and Benefit Data, includes wages and salary levels from the project survey and selected national databases. Section 3, Guide to Compensation Decisions, includes procedures for setting and adjusting employee compensation levels, standardized job categories and selected wage data for each, and discussion of the interactive computer tool that can be used to conduct a peer analysis for your system. Section 4, Recruiting, Hiring, and Retaining Staff, includes a review of current and best prac- tices from the survey, industry interviews, literature search, and follow-up calls with selected operators. The Guidebook is organized to present compensation guidance in various ways. Any partic- ular strategy for improving compensation practices may be described in multiple places--this repetition is intentional. Sections 2 through Section 4 complement one another and are intended to reiterate the link between your compensation practices and your ability to hire and retain high-quality employees. Finally, an interactive computer tool supports this Guidebook. The tool, available on the TRB website at http://trb.org/news/blurb_detail.asp?id=9282, provides an easy way to explore salary and benefit characteristics of transit systems in rural and small urban areas, and is based on the survey data. By entering the basic characteristics of your transit system, service area, and oper- ating environment, you will be able to query the database to compute and report salary and ben- efit characteristics of comparable systems. Section 3 and the TRB website include details on how to use the tool.