Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson &...
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Transcript of Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson &...
![Page 1: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/1.jpg)
Mastering Market Data
Presented to NPELRA
April 15, 2002Bruce G. Lawson, CCP
Fox Lawson & Associates LLC(602) 840-1070
![Page 2: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/2.jpg)
Determining Market Position
• Considerations in obtaining data
• Alternative survey analysis methods
• Sources of data
• Conducting custom surveys
• Survey data analysis
![Page 3: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/3.jpg)
Reasons for Obtaining Data
• Pricing jobs
• Trend analysis
• Pay practices
• Special Purposes
![Page 4: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/4.jpg)
Alternatives
• Purchased surveys
• Participate in sponsored surveys
• Custom third party surveys
• Conduct your own custom survey
![Page 5: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/5.jpg)
Decision Factors
• Cost
• Time
• Reliability
• Confidentiality
• Availability
![Page 6: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/6.jpg)
Definition of the Labor Market
• Local
• Regional
• National
• Industry
• Function
• Size
• Varies by level/job type
![Page 7: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/7.jpg)
Conducting Surveys
• Select benchmark jobs
• Select organizations to be surveyed• Type• Size• Number
• Gather information
• Analyze data and build model structure(s)
• Report results to participants
![Page 8: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/8.jpg)
Selecting Benchmark Jobs
• Jobs should be matchable (Police Officer, Fire Fighter)
• Jobs should reflect large numbers of employees within the organization when possible
• Jobs should reflect a cross section of occupational groups or job families
• Jobs should cover all hierarchical levels within the the group of jobs under study
• Job should be clearly defined
![Page 9: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/9.jpg)
How Many Surveys
• Purpose of the survey• Determine structural pay practice• Price specific jobs/functions
• Organizational culture• Market competitiveness• Internal relationships
• Type of jobs• Benchmark or non-benchmark
• Reliability of data
![Page 10: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/10.jpg)
Survey Participants
• Organizations that compete with your organization for employees (recruit from and lose to)
• Employers that reflect the general labor market(s) in which you compete for personnel
![Page 11: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/11.jpg)
Survey Participant Guidelines
• No less than 50% of the size of your organization
• No more than 200% of the size of your organization
• Organizations that serve similar populations (both in terms of size and community character)
• Organizations that have similar economic bases
![Page 12: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/12.jpg)
Survey Participation
• Number of participants will depend on the number of labor markets and the number of jobs being surveyed
• Who are your competitors
• Consideration should be given to number of potential non-respondents
• 10 or more actual participants, although all jobs may not have 10 data points
![Page 13: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/13.jpg)
Analysis of Data
• Statistical measures• Average• Place in market• Percentile
• Updating or trending data
• Your position versus the market• Job to job• Jobs by grade (Internal Equity) • Overall trend comparison
![Page 14: Mastering Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070.](https://reader036.fdocuments.in/reader036/viewer/2022082709/56649d9e5503460f94a887fa/html5/thumbnails/14.jpg)
Analysis of Data
• Regression Analysis• Line of best fit by job family or whole
structure• Predicts market pay rate corresponding
to job evaluation level• Produces two values which are utilized
in equation to calculate predicted pay rate, given a job evaluation rating
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Analysis of Data
• Regression Analysis • By plugging-in any job evaluation
rating into the equation, the predicted pay for that level can be determined
• Pay rate = (job evaluation rating times the x-coefficient value) + constant value
• This predicted pay rate then becomes the anchor-point for new salary structure (i.e., midpoint of structure)