Using PayScale To Get The Compensation Data You Need

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



PayScale’s Approach: Build a “Bucket” Around “Red”


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



lls

Experience


Automatic Bucket Large “Enough”

Web Developer II


Web Developer I Web Developer III

Too Few Not “Typical”

Two LevelsTwo Jobs

Ski

lls

Experience

Actual “Bucket” Has Complex Shape



lls

Experience


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.

Using PayScale To Get The Compensation Data You Need

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