Millions of dollars each year are spent collecting, analyzing and producing salary survey data. Employees use this data to take the temperature of industries, negotiate salary contracts and learn more about compensation in general, but what companies and HR departments use this data for is quite different. Deciding how much to pay employees, both salaried and contingent, has consequential impact on the health of your organization.
Relying on the salary data of today can impact the bottom line, retention and engagement if the data is not as scientific and controlled as believed to be. The standard salary survey of today is not objective and doesn’t include the entire percentage of the workforce.
The Subjectivity of the Survey
Over 90% of salary engine tools use outdated salary survey methods. Employees choose from a predetermined set of job titles that may not be applicable across all workplaces. Some companies use three experience levels, (Junior, Mid, Senior) for their org structures, while others have four or five. What mid-level management means at two different-sized companies can be vastly different.
Surveys try to match the same job at multiple companies to increase the strength of their results, but, if they are matching widely different job roles and responsibilities, are they accomplishing this goal? This lazy approach to data-gathering skews results. The result is more time and effort from HR teams to try to interpret and make use of the data.
Contingent Workers Unrepresented
40.4% of the workforce is now made up of contingent workers. The data needs to be accurate when determining how to pay these employees, yet salary surveys don’t include this group of workers. The administration of salary surveys is a time-consuming process that has been used exclusively for full-time employees. Today’s businesses need compensation information across all of their workforce. This data needs to be current, easy to use, and represent actual market conditions at any given point in time.
Leaving out a huge number of workers leaves many HR departments with a big question mark in the contingent compensation box. Salary data is hard enough to track for full-time employees, how can we get reliable information across all of our workforce?
What is Effective?
Salary data is failing HR planners in facilitating compensation practices. So, what can work? We need to realize that:
Effective rates and salary data cannot be generated from universal job titles
Rates and salary data vary widely based on specific skill sets, often unique to each company
Indexing live job market data is vastly more accurate than historical data
Paying employees too much can suffocate a company’s long-term growth, while paying employees too little leads to high turnover and disengagement. To attract, retain and motivate your global workforce, offering the best compensation packages is the key to your success. Using real-time salary data eliminates dependence on antiquated survey data and helps you achieve a competitive advantage.
A Better Way
PeopleTicker is the global standard for accurate, current, employee and contingent worker compensation data. PeopleTicker is based on granular job descriptions and pay rates, not just job titles. Using PeopleTicker’s library of 250,000 jobs, your organization's specific jobs and skillsets are analyzed and matched with our market data to create your custom job library that is always up-to-date with new labor market information. Imagine never having to worry about comparing your compensation data to market again. With PeopleTicker you have “live” labor data that is customized to your company’s specific needs.
If your survey data is leaving you lagging behind the competition, its time to make a change. Try PeopleTicker and see what real-time data can do for your company.