This document will help HR practitioners and company owners update their pay structure based on: 1. The company's compensation strategy 2. Market data gained from a Wage Survey

1. Updating Survey Data to Reflect Your Pay Policy
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Example taken from Compensation (9 ed) by Milkovich & Newman
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July 1 : Current Year LAG MATCH LEAD
Surveys are completed. Average Base (LEAD/LAG)
Participants report actual Job XYZ = $45,000 as reported
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Rates effective last Jan. 1
Today you are analyzing the You determine there is a 5% increase
Survey and making by the end of the current year
Recommendations
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July 1 Next Year:
Your Plan or Updated Salary Data begins Update here
Pay $47,250 for job XYZ
Forecasted rate of $47,750 during this plan year
For a 5% increase by YOU WILL BE MATCH THE
The END of your plan year MARKET ONLY FOR DAY 1
AND LAG THE REST OF THE
YEAR- SETTING THE WAGES
TO MATCH LAST YEARS’
Update to Here
Pay $48,431 during
plan year- YOU ARE
AHEAD OF THE MARKET
RATE FOR ½ THE YEAR AND
BEHIND FOR THE OTHER HALF
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December 31 : Your Plan Ends Update to here
Forecasted rated of $49,612 Pay $49,612 for
Job XYZ. YOU
LEAD THE MARKET ALL YEAR.