When you are looking for a match in a salary survey, sometimes you cannot find one that is an exact match to the employer’s job description.
Scenario #1: The employer’s job description has responsibilities that are “MORE than” the salary survey job’s description.
· Step 1: You look in the salary survey for a higher-level job to use as a match. That higher level job doesn’t exist in the survey or market data isn’t reported because the sample size was too small.
· Step 2: You decide to add a premium percentage to the survey job’s market data. 5%, 10%, or 15%? (I do not use 20% or higher because I think that is too much of an adjustment to the market data.)
What is an alternative to adding a premium percentage?
· You can slot the employer’s job into the appropriate pay grade based on factors like working conditions, problem solving, accountability, and know how.
Scenario #2: The employer’s job description has responsibilities that are “LESS than” the salary survey job’s description.
· You follow the same steps described above but you apply a discount percentage of 5%, 10% or 15% to the market data.
Here are my questions for the Compensation/HR professionals reading this:
· Do you agree with using 5%, 10%, or 15% premiums or discounts?
· Do you agree with not using 20% or more for premiums/discounts?
· Do you have another way of solving these scenarios and using adjustments to market data?
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