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Using PayScale To Get The  Compensation Data You Need
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Using PayScale To Get The Compensation Data You Need

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  • 1. Using PayScale to Get the Compensation Data You Need
    Dr. Al Lee
    Director of Quantitative Analysis
    Emily Chereck
    Senior Product Specialist
    PayScale, Inc.
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. PayScale Stats
    • 3-4M site visitors monthly
    • 9. 300,000 new profiles/month
    • 10. Rigorous statistical analysis, including internal and external validation checks
    • 11. Updated every 24hrs
    • 12. No Cost of Living Adjustments, Blending or Artificial Aging
  • Pulling Back the Curtain
    Challenge in determining market price is finding the pay of
    Employees likeyours
    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
  • 13. Skills
    Experience
    Employees Are Varied
  • 14. Your Employee is Unique
    Skills
    Web App. Developer, C#, 9 Y.E., CS Degree…
    Experience
  • 15. Traditional Surveys Put Employees in "Buckets”
    Skills
    App. Developer I
    App. Developer II
    App. Developer III
    Web Developer I
    Web Developer II
    Web Developer III
    Experience
  • 16. Which “Bucket” For Red?
    Skills
    App. Developer I
    App. Developer II
    App. Developer III
    Web Developer I
    Web Developer II
    Web Developer III
    Experience
  • 17. PayScale’s Approach: Build a “Bucket”
    Around “Red”
    App. Developer I
    App. Developer II
    App. Developer III
    Web Developer I
    Web Developer II
    Web Developer III
    Skills
    C# Web App. Developer, 9 Y.E., CS Degree…
    Experience
  • 18. PayScale Matches Closer Than Fixed Bucket Matches
    App. Developer I
    App. Developer II
    App. Developer III
    Web Developer I
    Web Developer II
    Web Developer III
    Skills
    C# Web App. Developer, 9 Y.E., CS Degree…
    Experience
  • 19. Automatic Bucket Large “Enough”
    Too Few
    Not “Typical”
    App. Developer I
    App. Developer II
    App. Developer III
    Two Jobs
    Two Levels
    Web Developer II
    Web Developer I
    Web Developer III
    Skills
    Experience
  • 20. Actual “Bucket” Has Complex Shape
    App. Developer I
    App. Developer II
    App. Developer III
    Web Developer I
    Web Developer II
    Web Developer III
    Skills
    C# Web App. Developer, 9 Y.E., CS Degree…
    Experience
  • 21. 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
  • 22. 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.
    7,000 Positions. 50 Major Industries. 11 Countries