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Surveying Market Pay

Surveying Market Pay. Just as skill, effort, responsibility, and working conditions have been used to differentiate rates of pay among major job groupings, surveys have been used to determine a specific rate of pay for a particular incumbent / jobholder . Job Duties 1. 2. 3.

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Surveying Market Pay

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  1. Surveying Market Pay Just as skill, effort, responsibility, and working conditions have been used to differentiate rates of pay among major job groupings, surveys have been used to determine a specific rate of pay for a particular incumbent / jobholder. Job Duties 1. 2. 3.

  2. Critical Pay Survey Problems Obtaining A Proper Job Match In moving from a manufacturing economy where jobs have been fairly well defined to a service economy where jobs have historically been poorly defined, and where jobs with similar titles have significantly different duties, accurate job matching becomes both more difficult and more important.

  3. Critical Pay Survey Problems Collecting Useful Pay Data The kinds of pay data collected in a a a pay survey range from incorrect and harmful, to worthless, to extremely useful. For participants in a survey, providing pay data is often a consuming, futile TIME-assignment with discernible benefits.

  4. Critical Pay Survey Problems Often, those who actually complete the pay survey questionnaires are some of the least experienced, lowest-paid members of the human resources / compensation or payroll departments and may not even understand the kinds of data being requested.

  5. Critical Pay Survey Problems Because a survey may clearly state the kinds of pay data desired, that does not mean that those responding to the survey will understand the instructions and provide the specific requested data.

  6. Critical Pay Survey Problems RELATING DATA TO ORGANIZATIONAL PAY POLICIES Pay surveys should be additional valuable inputs And to to the pay policies of an organization. To be truly useful and to be used properly, the pay policy should be well defined, embedded within a pay policy should be an understanding of what pay surveys can do and what they cannot do.

  7. Critical Pay Survey Problems Also, if significant demands are to be placed on pay survey data, the costs involved in acquiring valid and reliable data must be understood and accepted.

  8. Critical Pay Survey Problems • Integrating market pay data with internally generated job worth and pay structure design data. • Recognizing the goals of survey designers and implementers. Just as the data requested may not be the data received, the designers and operators of a pay survey may have their own "hidden agenda".

  9. Critical Pay Survey Problems Analyzing And Making Inferences Form Collected Pay Data A major goal of most pay surveys is to predict accurately the so-called market rate of pay. Typically, this market rate of pay is the median or average rate of pay for the jobs for which pay data have been collected.

  10. Critical Pay Survey Problems Recognizing Pay As One Component Of The Total Compensation Or Total Reward System Of The Organization Although this text focuses on pay systems and recognizes the importance of pay in the physical, emotional, and intellectual well-being of employees, it is only one component of the reward system.

  11. Critical Pay Survey Problems Using Third-Party Data vs Performing A Survey Major considerations other than cost when selecting third-party surveys are the determination of: • The jobs or groups of jobs for which pay data is needed.

  12. Critical Pay Survey Problems • The organizations by geographic location, product, revenue, and number of employees, from which the most useful and comparable data is obtainable. • The use of the survey to identify trends in order to make pay structure adjustments.

  13. Determining The Need For A Survey Employers must be aware of how their reward system compares with others competing for workers in the same geographic areas and in the same industry or for those workers with specific knowledge and skills... But they may be making the comparison on only one part of the total rewards being provided.

  14. Determining The Need For A Survey If the goal is to provide a sound basis for developing a pay structure that is competitive with external markets and in alignment with established pay policy criteria then an organization must to ensure that compensation data and information are as correct and valid as possible... The most effective response is a formalized market survey process.

  15. Why Conduct A Survey • Hiring and retaining competent employees. • Promoting worker productivity. • Developing an adequate and acceptable pay structure. • Recognizing pay trends In the marketplace. • Defending pay practices In a court of law.

  16. Scope Of A Survey • Once a decision has been made to go forward with a survey the next step is to determine its scope • Having determined internal requirements, the survey designer's next step is to decide where to look for the needed data.

  17. Scope Of A Survey • The next step is to identify organizations that hire from the specified labor markets. • As a variety of organizations responding to a survey broadens, the need for different kinds of compensation data and for different statistical methods for analyzing these data increases.

  18. Scope Of A Survey • Those responsible for managing and conducting the survey should be experienced professionals who are familiar with and understand the process......Individuals capable of using the available tools and techniques to identify its fine differences.

  19. Preparing For The Survey • Development, Implementation, and Analysis Are skills, talent, and equipment available? • Classification of Job or Occupation Where is (are) the problem jobs and are they unique? • Pay Structure Multiple of single pay structures and are other organizations compatible?

  20. Identification of labor market What labor market(s) and how complex ? Influence of competing organizations Selection of respondents Who are the competing organizations, what do they look like, and does anyone dominate the labor market ? Which organizations are the best to look to for information ? Preparing For The Survey

  21. Cooperation of respondent Identify likely contacts and establish communication links. Kinds of data to be collected What do you want to know ? Maintenance of confidentiality How will you ensure the confidence of the participants ? Preparing For The Survey

  22. Telephone Useful for collecting data on a relatively small number of easily identified and quickly recognized jobs. Mailed Questionnaire The most common technique for collecting formal survey data. Face-to-Face Interview The best technique for collecting data is the completion of a questionnaire during a face-to-face interview. Conference Data Collection Techniques

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