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

The company's mission and vision statement

Employee training and development

Employee hiring practices

The design, implementation, and administration of a compensation program

Data in aggregate values

Data in individual values

Data in summarized form only

Data in narrative format only

Wage rate or salary

Employee gender

Employee age

Surveys with higher response rates

Surveys with lower numbers of companies and/or incumbents reported

Surveys with older data

Surveys with lower quality benchmarks jobs

When market data are not available for a specific job

When an organization is undergoing a restructuring process

When an employee is promoted to a higher position

When an organization is experiencing financial difficulties

Easy to understand and explain, aligned with internal equity, accurate for all types of jobs, provides high degree of transparency

May be difficult to obtain data, may not be aligned with internal equity, not defensible on job content basis, may be overly time consuming

Simple to administer and update for currency, responsive to the market, not overly time consuming compared to other methods, high degree of transparency

Based on job content, provides flexibility for job evaluation, accurate for all types of jobs, requires less market data

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.

No. of months to age x annual aging factor

No. of months to age/12 months

No. of months to age/12 months x annual aging factor

Annual aging factor x 12 months

Increased survey participation

Improved data accuracy

Faster survey completion time

Lower survey costs

Only online survey

Only company's internal survey

Custom third-party survey

Government survey

Linear regression

Summary Statistics

Maturity Curves

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.

Customer information

Financial information

Information related to individual employees

Marketing materials

Restricted stock units and stock options

Stock appreciation rights and deferred stock units

Phantom stock and performance shares

All of the above

Any market inequities are built in

Simple to administer

Takes into consideration the company's perceived value of a job

Legally defensible based on job content

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

A letter to an employee announcing a promotion

A letter to an employee terminating their employment

A letter to a candidate offering them a job

A letter to an employee outlining their performance evaluation

Information related to individual employees

Information related to groups of employees

Spreadsheet applications useful for gathering and sorting information

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

Wage rate or salary.

Employee gender

Employee age

The minimum pay rate for a job

The maximum pay rate for a job

The range of pay rates for a job

The midpoint pay rate for a job