m3 survey data Flashcards
Why salary surveys are used
- Price jobs and determine market positions
- Analyze pay trends
- Document budget and structure movement
- Make informed decisions
Why salary surveys are used
- Gather data on policies and procedures
- Diagnose compensation problems
- Defend current practices
Published Surveys
• There are thousands of published surveys available for purchase.
• Purchase price varies by survey scope, type of analysis and overall sophistication of the
final product.
• Most survey providers give a substantial discount to survey participants.
Custom 3rd party surveys
• A third party conducts the survey to meet your needs and specifications.
• The third party can be a consultant, professional association or graduate students from a
local university.
• In many cases, participants in a survey sponsored by an individual company pay nothing to
receive a copy of the survey results.
Free sources-Internet
Many consulting organizations have Websites containing sample survey data.
• Be sure the information is timely and includes adequate descriptions of the benchmark jobs.
• Data from sources where individuals are self-reporting information may be less reliable than
those that collect data directly from employers.
Free sources- periodicals and publications
These may be less likely to be used in formal market pricing efforts since they often do not
include adequate job descriptions.
Free sources- professional recruiters
Although often an underutilized source, recruiters provide insightful information.
Professional recruiters could be both internal and external recruiters.
Free sources- govt data
Local and national governments are another source of data. The reliability and currency of
such data should be considered in its utilization.
Decision Factors for surveys
■ Cost – Does the survey provide enough benefit to justify the expense?
■ Time – How much time will it take to gather survey data? How quickly must survey data be
obtained and analyzed?
■ Reliability – Is the survey sponsor reputable? Has data been verified?
■ Availability – Is current data available in time to meet the organization’s needs?
■ Data format – Is data formatted to provide specific information? Is data reported by industry, by
geographic area, number of employees?
How many sources- More sources..
– Larger database – More sources yield a larger database with more information.
– Avoiding bias – More sources aid in avoiding any particular bias.
– Clustering data – More sources tend to yield a pattern or clustering of data.
– “Muddying the water” – Too many sources may “muddy the water” – the “right” number
of sources may depend on the position level in question.
Survey data formats- Summary Statistics
A majority of surveys are reported in this format.
– Information is provided which gives a simple and accurate description of the data, and
can include mean, median, sample sizes as well as percentiles.
Survey data formats- Simple Linear Regression
Simple linear regression (Exhibit III) – only one independent variable
• Used for scope-sensitive jobs – (e.g., management)
– Example: an HR executive salary level based on the number of employees in the
organization
• May also be used to establish base pay line
Median
Central tendency – describes the central tendency of the data to minimize the effect of
extreme values
• Extreme value – These extreme values affect the mean; they do not affect the median.
– The median answers the question: “What is the middle salary in a set of ranked salaries?”
Weighted mean (average)
Reflects incumbents – reflects equally the number of incumbents in a survey
• Reflects market value – If companies participating are truly representative of the market,
the data should reflect the market value of the job.
– The weighted mean answers the question: “On average, what are incumbents in a
particular job paid?”
■ Unweighted mean (average)
Reflects companies – Each participating company is given the same weighting in the
calculation, irrespective of its participant count. The unweighted mean provides each
company with equal weight in the calculation. It counteracts situations where one or a few
employers have the majority of incumbents, thereby heavily influencing the results.
– The unweighted mean answers the question: “On average, what are companies paying a
particular job?”
