Pay Survey Practices - Part II

1 / 3

# Pay Survey Practices - Part II - PowerPoint PPT Presentation

Pay Survey Practices - Part II. Measuring Pay Data Distributions: Normal - Bell shaped curve - rarely appropriate Non-Normal - pay data is unevenly distributed; more typical of pay data collected from surveys Measures of Central Tendency used to report Pay

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.

## PowerPoint Slideshow about 'Pay Survey Practices - Part II' - gabby

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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Pay Survey Practices - Part II

Measuring Pay Data

• Distributions:
• Normal - Bell shaped curve - rarely appropriate
• Non-Normal - pay data is unevenly distributed; more typical of pay data collected from surveys
• Measures of Central Tendency used to report Pay
• Median - the middle value of an ordered sequence of data
• Mean - sum of data divided by numberof observations
• Unweighted - each company is an observation
• Weighted - each employee is an observation

MGMT 4030 - Managing Employee Reward Systems

Pay Survey Practices - Part II
• Measures of Variation used to Report Pay
• Range of Pay Data
• Minumum, Maximum, Midpoint
• Quartertile - 1st , 2nd (above midpoint); 3rd, 4th (below )
• Standard Deviation - distance of data from mean in a normal distribution.
• Typical Market positions
• Lead the market
• Lag the Market
• Match the Market

MGMT 4030 - Managing Employee Reward Systems

Pay Practices - Part II(Gomez-Mejia & Balkin, 1992)

Recommended Pay Survey Practices

• Relevance
• Match on Job Descriptions (not Titles)
• Consistent Use of Same Statistical Measures
• Keep Pay Data Current
• Monitor Effectiveness Using HR Benchmarks

MGMT 4030 - Managing Employee Reward Systems