Know the trends in pay rates and the changes in surrounding industry norms, and your business can be poised to make the most effective choices. In order to determine how to strategically price positions within your own company, you must know the decisions that other companies are making, including how they pay their employees.

Most organizations use one of the following sources of information, or build their data based on a combination of multiple sources.

1. Third-Party Surveys

Of course, the most common source of data on compensation and employee trends is acquired through compensation surveys that are conducted by third parties. These surveys often reveal job-specific, employer-provided data that can be categorized and organized according to various criteria.

 2. Compensation Consultants

A popular alternative to surveys, consultants share information as relevant to your company and apply criteria to your compensation strategy based on their expertise. Since many consultants rely themselves on compensation surveys for market data, surveys are directly or indirectly the source of information for the majority of companies.

 3. Government Labor Databases

The U.S. Bureau of Labor and Statistics and Statistics Canada are two reliable, comprehensive sources that are often used to gather compensation market data propecia pills online.

4. Recruiters

Typically, recruiters ask potential candidates to reveal their salary history, building in information about the proposed position in relation to past compensation. Across the course of their encounters, recruiters often have collected quite an array of salary statistics based on a wide variety of jobs and companies.

This method, however, depends on the honesty of employee feedback, and may not be the most reliable metric.

5. Job Postings

Browsing job boards, you can see that postings for positions will often indicate an intended salary range for the job. Compare positions that are similar to ones in your own company for a general idea of nearby pay levels.

Keep in mind that this range may be the company’s ideal rather than realistic, and does not reflect the negotiation or specific details of the employee who is ultimately chosen.

6. Proxy Filings

In public companies, executives and directors submit statements that provide information, primarily to shareholders, on the financial details of the company. This generally includes compensation information.

This can be time-consuming and leave you combing through data that is irrelevant to your needs.

Choosing Your Tool

According to a 2011 Culpepper Compensation Market Pricing Practices Survey based off of 226 participating organizations, 87% of companies chose compensation surveys conducted by third-party organizations. Information from employees is considered less credible, while data that is collected and verified directly from the executives or HR professionals of a company is considered about as trustworthy as you can get.

With the many reputable survey providers offering valuable market data, third-party surveys are the most efficient and reliable way to obtain essential information. Comprehensive and detailed, no other source will give the same reach and depth of data.

The bigger the company, the more likely you will need an intuitive software applications to best gather and disseminate information. When making choices based off of large amounts of qualified data, the best way to use it effectively is to entrust it to a program that can handle huge quantities of information while also balancing the impact of each detail according to your proposed plans.

 

Source: https://www.shrm.org/hrdisciplines/compensation/articles/pages/marketpricing.aspx

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