Have you ever reviewed market data to determine if your company is under or overpaying employees? Ever wonder what your job is worth?
Over the coming weeks, HRG will be doing a new series on compensation market data; here’s the first installment:
Compensation Market Data: Part I
Ever wonder what your job is worth? Are you losing talent to your competition due to their compensation? Have you ever reviewed market data to determine if your company is under or overpaying employees? Over the next few weeks, HRG will provide compensation data for five common positions within several major industries to provide a firsthand look at market rates within your industry, as well as give you some ideas about how this information can be utilized.
To begin, you’ll need to understand a few important definitions and the layout of the data.
So what is market data, exactly? Well, market data gives you a salary comparison point by providing statistical data on the pay of employees performing similar tasks in similar organizations. Market data can often be specialized, though, to show you only the data for the market within a certain geographic area, size of organization, or a specific industry – for instance, in the example below we have used two factors to focus the market data: the size of the company (as defined by number of full time employees), and the geographic area.
Below is the basic format that we’ll be using to present the data from week to week, along with a general explanation of the labels.
*Base 50th Percentile: This refers to the 50th percentile, or median, salary for people in the position listed under ‘Job Title.’ This number is the Base 50th because it contains information about the Base Salary only – it does not take into account some factors that may affect total compensation such as commission, bonuses, long-term incentives, etc.
*Greeting Card Writer for Dogs: Please note this is not a real position; the job and accompanying data was created for illustrative purposes only. : )
So What’s Next?
With the next installment, HRG will provide the market data for five positions within an industry in the foreground of everyone’s thoughts during cold and flu season – Healthcare. During this series there will also be tips and information about how this type of data can be helpful to your organization, so check back in, and let us know if you have any questions!
As always, you can reach us at 859.514.7724, or send an e-mail to firstname.lastname@example.org.