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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

  1. 1. Using PayScale to Get the Compensation Data You Need<br />Dr. Al Lee<br />Director of Quantitative Analysis<br />Emily Chereck<br />Senior Product Specialist<br />PayScale, Inc.<br />
  2. 2. Agenda<br />Overview – Goals of job market pricing<br />How PayScale collects compensation data<br />How to use Insight to price your jobs<br />How PayScale matches the right market data to your jobs<br />Questions<br />
  3. 3. Overview<br />For most jobs, the “market” determines the wage<br />Your job’s “market price” is simply what similar employees doing similar jobs are paid<br />If your company pays below market, employees may leave<br />If your company pays above market, your company may not be profitable<br />Critical to know a job’s market price when setting pay<br />PayScale Insight is a market pricing tool<br />
  4. 4. How PayScale Works<br />PayScale follows the World at Work process of <br />Job analysis<br />Job evaluation<br />Market pricing<br />However, we collect and process data differently from traditional compensation surveys<br />We collect data on all jobs, not just “benchmark” jobs<br />We collect detailed data on compensable factors<br />We collect data from employees directly<br />
  5. 5. Job Analysis<br /><ul><li>An accurate job analysis requires surveying employees to understand their compensable factors:</li></ul>Unique skills, knowledge, or abilities that are compensated by the market<br />Unique responsibilities and scope of position<br />Organizational factors like location, industry, and company size are also factors that affect pay<br />
  6. 6. Consumer Survey<br />PayScale has constructed a job <br /> analysis survey for employees <br /> that:<br />Puts employees in a neutral <br /> frame of mind<br />Asks only questions employees <br /> can answer<br />Asks only about concrete <br /> compensable factors<br />Never asks employees to <br /> “level” themselves<br />Is fully automated<br />
  7. 7. Automated Data Collection<br />Profiles accurately reflect jobs and compensation<br />Consistent with other compensation resources: Watson Wyatt, Mercer, BLS<br />We collect data for locations, company types, and jobs that are too expensive for traditional surveys<br />Our data reflects all salaries in a market, not just those of companies who participate in surveys<br />
  8. 8. PayScale Stats<br /><ul><li>3-4M site visitors monthly
  9. 9. 300,000 new profiles/month
  10. 10. Rigorous statistical analysis, including internal and external validation checks
  11. 11. Updated every 24hrs
  12. 12. No Cost of Living Adjustments, Blending or Artificial Aging</li></li></ul><li>Pulling Back the Curtain<br />Challenge in determining market price is finding the pay of <br />Employees likeyours<br />Doing jobs like yours<br />For employers like yours<br />In locations near your company<br />PayScale determines if a profile is “like” your job based on the compensable factors that affect pay the most for your job<br />The math is complex, but understanding the approach and results is straight forward<br />
  13. 13. Skills<br />Experience<br />Employees Are Varied<br />
  14. 14. Your Employee is Unique<br />Skills<br />Web App. Developer, C#, 9 Y.E., CS Degree… <br />Experience<br />
  15. 15. Traditional Surveys Put Employees in "Buckets”<br />Skills<br />App. Developer I<br />App. Developer II<br />App. Developer III<br />Web Developer I<br />Web Developer II<br />Web Developer III<br />Experience<br />
  16. 16. Which “Bucket” For Red?<br />Skills<br />App. Developer I<br />App. Developer II<br />App. Developer III<br />Web Developer I<br />Web Developer II<br />Web Developer III<br />Experience<br />
  17. 17. PayScale’s Approach: Build a “Bucket” <br />Around “Red”<br />App. Developer I<br />App. Developer II<br />App. Developer III<br />Web Developer I<br />Web Developer II<br />Web Developer III<br />Skills<br />C# Web App. Developer, 9 Y.E., CS Degree… <br />Experience<br />
  18. 18. PayScale Matches Closer Than Fixed Bucket Matches<br />App. Developer I<br />App. Developer II<br />App. Developer III<br />Web Developer I<br />Web Developer II<br />Web Developer III<br />Skills<br />C# Web App. Developer, 9 Y.E., CS Degree… <br />Experience<br />
  19. 19. Automatic Bucket Large “Enough”<br />Too Few<br />Not “Typical”<br />App. Developer I<br />App. Developer II<br />App. Developer III<br />Two Jobs<br />Two Levels<br />Web Developer II<br />Web Developer I<br />Web Developer III<br />Skills<br />Experience<br />
  20. 20. Actual “Bucket” Has Complex Shape<br />App. Developer I<br />App. Developer II<br />App. Developer III<br />Web Developer I<br />Web Developer II<br />Web Developer III<br />Skills<br />C# Web App. Developer, 9 Y.E., CS Degree… <br />Experience<br />
  21. 21. PayScale Report Details: Transparency<br />Compensation information : Importance ordered list of compensable factors<br />Compensation Influencers : How much we think each factor matters<br />Data Summary : Characteristics of “similar” profiles<br />Anonymous Profiles : Sample of profiles we match to within your search<br />
  22. 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. <br />Our patent-pending, real-time profiling system indexes custom employee attributes (such as industry-specific certifications) and specific job titles for every industry. <br />Our secure, on-demand business solutions, PayScale MarketRate and PayScale Insight, provide employers with accurate, reliable compensation detail never before available.<br />7,000 Positions. 50 Major Industries. 11 Countries<br />

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