C17 Market Pricing - Conducting a Competitive Pay Analysis Questions and Answers

Data points that are too high compared to the average

Data points that are too low compared to the average

Data points that are within the expected range

Data points that are anomalies in comparison with other data points

Below the minimum wage

The median salary range

Above the median salary range

At the maximum salary range

Information related to individual employees

Information related to groups of employees

Spreadsheet applications useful for gathering and sorting information

Provides key competitive information on how the organization's compensation levels compare to the market.

Achieves the goal that no employee should leave the organization due to pay issues

Ensures that the organization will always lead the market regardless of financial resources.

Median

Mode

Mean

Trimmed mean

Range

Salary increase

Promotion

Flexible work arrangements

Performance bonus

Pay range

Market rate composite

Slotting

Pay policy

Traditional surveys focus on salary data, while market pricing surveys focus on pay structures

Traditional surveys are based on self-reported data, while market pricing surveys rely on compensation data from multiple sources

Traditional surveys are used by employers to determine internal pay structures, while market pricing surveys are used to determine external pay competitiveness

There is no difference between the two survey types

Different rates, market research, and salary increase movements

Market research and aging factor

Salary increase movements and aging over two calendar years

Lead or lag approach and market research

All of the above

Focus on broadly defined job roles

Focus on individual employees with specific skills

Focus on internal value to the organization

Provides key competitive information on how the organization's compensation levels compare to the market.

Provides a clear understanding of the organization's business strategy.

Provides key competitive information on the organization's products and services.

Provides information on the organization's employee demographics.

Employee engagement data, company revenue, market share

Job pricing worksheet, market index of competitiveness, graphic representation

Employee turnover rates, training hours, safety record

Customer satisfaction data, product quality metrics, innovation metrics

Conducting own survey

Custom third-party surveys

Published surveys

All of the above

Verify survey data

Analyze job content

Identify benchmark jobs and match to survey job descriptions

Identify relevant labor markets

Survey sources are identified.

A limited sample size.

Aggregate data is trimmed.

Internal pay equity

Employee job satisfaction

External market pricing or competitiveness

Employee engagement

A survey of employee job satisfaction

A survey of employee benefits

A survey of employee performance ratings

A survey of compensation data for jobs in the same or similar industries

At least 80%

At least 70%

At least 60%

At least 50%

Time-consuming to administer

Biased in determining job values

Expensive to implement

Complex to administer

Simple to administer

Conducting own survey only

Custom third-party surveys only

Published surveys only

Both conducting own survey and custom third-party surveys

The extent to which the survey has been audited

The number of jobs matches found in the survey

The availability of the results in both hard copy and electronic form