C17 Questions and Answers

Easy to understand and explain, aligned with internal equity, accurate for all types of jobs, provides high degree of transparency

May be difficult to obtain data, may not be aligned with internal equity, not defensible on job content basis, may be overly time consuming

Simple to administer and update for currency, responsive to the market, not overly time consuming compared to other methods, high degree of transparency

Based on job content, provides flexibility for job evaluation, accurate for all types of jobs, requires less market data

Combine into one factor, then age

Age both years first, then subtract the second year

Age one year first, then age the second year

Customer information

Financial information

Information related to individual employees

Marketing materials

Median

Mode

Mean

Trimmed mean

Range

Averaging

Blending

Extrapolation

Regression

Surveys that have a higher purchase price

Surveys that exclude data from your relevant labor market

Surveys with higher numbers of companies and/or incumbents reported

A letter to an employee announcing a promotion

A letter to an employee terminating their employment

A letter to a candidate offering them a job

A letter to an employee outlining their performance evaluation

markets which exclude geographic location and organizational size

Labor market(s) against which the organization must equal its pay levels

Market(s) from which an organization draws and loses its employees

Labor market information that is generally applicable only to the manufacturing sector

The extent to which the survey has been audited

The number of survey questions

The type of survey methodology used

The length of the survey

A ranking of jobs based on the number of years of experience required

A ranking of jobs based on the level of education required

A ranking of jobs based on their worth to the organization

The process of grouping or categorizing jobs relative to other jobs, based on factors such as skills, responsibilities, and pay level

Market pricing

Wage and salary surveys

Pay compression

Cost-of-living adjustments

By setting compensation rates based on employee tenure

By setting compensation rates based on employee performance

By setting compensation rates based on employee qualifications

By setting compensation rates based on the prevailing rates for jobs in the current market place

By setting compensation rates based on the company's financial performance

A system for distributing bonuses to employees

A set of policies and procedures for administering employee pay

The organization's approach to paying employees

The specific salary levels and ranges for each job in the organization

Attracting new employees

Retaining employees

Motivating employees

All of the above

Offering higher compensation than competitors

Providing only monetary compensation

Determine the right mix of reward components that meet the goals of attracting the right talent while staying within the budget

Offering only non-monetary rewards

The price of the survey source and whether it has increased over time

The average time needed to match a job to the survey source

How many times per year the survey source is updated

The method of aging the data from multiple surveys to a common point in time.

Wage rate or salary

Employee gender

Employee age

Awarded pertains to profit sharing plans while target pertains to performance.

Target represents what was actually paid, awarded represents what would be paid if the plan pays out at expected levels.

Awarded represents what was actually paid, target represent what would be paid if the plan pays out at expected levels.

The combination of base pay, benefits, and bonuses that an employee receives

The total value of all compensation and benefits paid to employees in a given year

The rewards and recognition programs offered by an organization to motivate employees

The sum of all compensation and benefits paid to an employee over the course of their career