salarysurvey - INTRODUCTION The most common activity in...

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INTRODUCTION The most common activity in compensation administration is the collection and analysis of pay data from other organizations. Labor markets differ from other markets; employers must search for useful data to establish competitive pay levels. The ultimate goal is to identify the market rate, or what other organizations pay for similar work in the external marketplace. This is the goal because most employees expect to be paid at a level that is consistent with that paid in the market for comparable work. The Market Rate The "market rate" may apply to all organizations in the: same physical area same industry within the area same industry, regardless of area By discovering "competitive market rates" in an area and/or industry, an organization should be able to accomplish two objectives: 1. determine appropriate compensation levels for comparable work and 2. diagnose existing or potential salary issues Once an organization determines competitive market rates of pay for benchmark positions, the organization can identify if positions within the organization are underpaid or overpaid, and internal inequity situations may be identified and corrected. Major Expense Compensation can account for up to 60% of an organization's expenditures, so obtaining accurate market pay data can be crucial to an organization's bottom line. This labor market information is usually obtained from some form of compensation survey. Course Overview This course begins by examining eight different sources of survey data. You will be given guidance on how to conduct your own compensation survey, and then we will look at how survey data is actually used by professionals. Finally, you will get the chance to integrate survey data into a sample compensation decision.
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RANGE OF SURVEYS An unlimited number of compensation surveys are available. Over 10,000 compensation surveys are conducted every year in the United States alone. In addition, the Internet has spawned thousands of one-time surveys. So where do you begin? First, you must decide how much you want to spend. Conducting surveys is expensive, requiring staff time to design, collect, analyze and distribute results. This helps to explain why customized surveys are done infrequently. If you don't want to go to the time and expense of conducting your own survey, you may always purchase data from others. But you must make sure the data collected for the survey is reliable and usable to accomplish your goals. Otherwise, the survey data may be useless to you. Here are Your Options Organizations that require wage-survey data have eight options (listed from LEAST expensive to MOST expensive). 1. U.S. government surveys (if one is applicable to your organization) 2. Internet data (taken from free salary sites) 3. online survey sites 4. computer data banks 5. research outsources (providing a census based on a variety of wage-survey sources) 6. surveys conducted by a professional or trade association, a large consulting firm,
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salarysurvey - INTRODUCTION The most common activity in...

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