1 / 9

Collecting Market Data

Collecting Market Data. Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070. 6 Steps. Define Compensation Philosophy and Market Pricing Strategies Select and Review Survey Sources Match Jobs to Survey Sources Interpret Published Data

judyv
Download Presentation

Collecting Market Data

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Collecting Market Data Presented to NPELRA April 15, 2002 Bruce G. Lawson, CCP Fox Lawson & Associates LLC (602) 840-1070

  2. 6 Steps • Define Compensation Philosophy and Market Pricing Strategies • Select and Review Survey Sources • Match Jobs to Survey Sources • Interpret Published Data • Determine Market Rates • Make Policy and Program Decisions

  3. Compensation Philosophy • Base Compensation or Total Compensation? • How do you define your competition? • Industry type, size, location • What is your target market position? • Average, 50th percentile, 75th percentile • How will the pay structure be tied to the market? • Structure policy • What is the targeted comparison of actual pay versus market pay? • Actual pay versus midpoint pay relative to the market

  4. Selecting Survey Sources • Published data versus custom survey • Is the survey sponsor reputable? • Are the survey job descriptions adequate for good matching? • How large is the survey sample? • How current is the data? • Is the survey cost effective?

  5. Job Matching • Benchmark jobs should exist in similar form in the marketplace • Match should be based on description - not title • Make sure numbers used are consistent (mean, median, etc.) • Focus on essential duties and qualifications • Determine if all data sources are equal

  6. Interpreting Data • Be consistent in using statistics (mean, percentile, etc.) • Trend analysis and regression analysis • Weighted or un-weighted data • Internal equity versus market parity • Correlation co-efficient (R square)

  7. Determining Market Rates • Trend or age all survey data to a common date • Apply adjustments to jobs based on Philosophy/strategies • Across the board, • job by job• Occupational group• Level of job • Lead, Lead-Lag, or Lag

  8. Policy Decisions • How competitive is your current system or plan? • How are you using your compensation dollars? • What do you want you pay plan to do for you? • What can you afford to do? • What is the business climate in which you must operate?

  9. Key Steps • Gather and analyze pay data and practices at the total compensation level if possible • Integrate market data with a job evaluation plan to design pay structures that blend market parity and internal equity • Perform more advanced statistical analyses to develop pay structures with increasing, rather than constant, midpoint differentials • Perform detailed cost analyses in relation to issues such as the implementation of new pay structures or the development of merit increase matrices and salary increase budgets

More Related