Post on 18-Dec-2014
description
D r. A l L e eD i r e c t o r o f Q u a n t i t a t i v e A n a l y s i s
E m i l y C h e r e c kS e n i o r P r o d u c t S p e c i a l i s t
P a y S c a l e , I n c .
Using PayScale to Get the Compensation Data You Need
Agenda
Overview – Goals of job market pricing
How PayScale collects compensation data
How to use Insight to price your jobs
How PayScale matches the right market data to your jobs
Questions
Overview
For most jobs, the “market” determines the wage Your job’s “market price” is simply
what similar employees doing similar jobs are paid
If your company pays below market, employees may leave
If your company pays above market, your company may not be profitable
Critical to know a job’s market price when setting pay
PayScale Insight is a market pricing tool
How PayScale Works
PayScale follows the World at Work process of Job analysis Job evaluation Market pricing
However, we collect and process data differently from traditional compensation surveys We collect data on all jobs, not just “benchmark”
jobs We collect detailed data on compensable factors We collect data from employees directly
Job Analysis
• An accurate job analysis requires surveying employees to understand their compensable factors: Unique skills, knowledge, or abilities that are
compensated by the market Unique responsibilities and scope of position
Organizational factors like location, industry, and company size are also factors that affect pay
Consumer Survey
PayScale has constructed a job analysis survey for employees that:
Puts employees in a neutral frame of mind Asks only questions employees can answer Asks only about concrete compensable factors Never asks employees to “level” themselves Is fully automated
Automated Data Collection
Profiles accurately reflect jobs and compensation Consistent with other compensation resources:
Watson Wyatt, Mercer, BLS
We collect data for locations, company types, and jobs that are too expensive for traditional surveys
Our data reflects all salaries in a market, not just those of companies who participate in surveys
PayScale Stats
• 3-4M site visitors monthly
• 300,000 new profiles/month
• Rigorous statistical analysis, including internal and external validation checks
• Updated every 24hrs
• No Cost of Living Adjustments, Blending or Artificial Aging
Pulling Back the Curtain
Challenge in determining market price is finding the pay of Employees like yours Doing jobs like yours For employers like yours In locations near your company
PayScale determines if a profile is “like” your job based on the compensable factors that affect pay the most for your job
The math is complex, but understanding the approach and results is straight forward
Employees Are VariedSk
ills
Experience
Your Employee is UniqueSk
ills
Experience
Web App. Developer, C#, 9 Y.E., CS Degree…
Traditional Surveys Put Employees in "Buckets”
Ski
lls
Experience
Web Developer I Web Developer II Web Developer III
App. Developer I App. Developer II App. Developer III
Which “Bucket” For Red?S
kills
Experience
Web Developer I Web Developer II Web Developer III
App. Developer I App. Developer II App. Developer III
PayScale’s Approach: Build a “Bucket” Around “Red”
Web Developer I Web Developer II Web Developer III
App. Developer I App. Developer II App. Developer IIISki
lls
Experience
C# Web App. Developer, 9 Y.E., CS Degree…
PayScale Matches Closer Than Fixed Bucket Matches
Web Developer I Web Developer II Web Developer III
App. Developer I App. Developer II App. Developer IIISki
lls
Experience
C# Web App. Developer, 9 Y.E., CS Degree…
Automatic Bucket Large “Enough”
Web Developer II
App. Developer I App. Developer II App. Developer III
Web Developer I Web Developer III
Too Few Not “Typical”
Two LevelsTwo Jobs
Ski
lls
Experience
Actual “Bucket” Has Complex Shape
Web Developer I Web Developer II Web Developer III
App. Developer I App. Developer II App. Developer IIISki
lls
Experience
C# Web App. Developer, 9 Y.E., CS Degree…
PayScale Report Details: Transparency
Compensation information : Importance ordered list of compensable factors
Compensation Influencers : How much we think each factor matters
Data Summary : Characteristics of “similar” profiles
Anonymous Profiles : Sample of profiles we match to within your search
7,000 Positions. 50 Major Industries. 11 Countries
PayScale is a market leader in global online compensation data. With the world's largest database of individual employee compensation profiles, PayScale provides an immediate and precise snapshot of the job market.
Our patent-pending, real-time profiling system indexes custom employee attributes (such as industry-specific certifications) and specific job titles for every industry.
Our secure, on-demand business solutions, PayScale MarketRate and PayScale Insight, provide employers with accurate, reliable compensation detail never before available.