C17 Market Pricing - Conducting a Competitive Pay Analysis Questions and Answers

Restricted stock units and stock options

Stock appreciation rights and deferred stock units

Phantom stock and performance shares

All of the above

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

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

You may receive a substantial discount if you participate in the survey

Data is more reliable because it is self-reported

It can be tailored to meet your needs and specifications

Compensation structure

Job description

Performance evaluation

Employee benefits

Compensation philosophy

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

Short and vague questions

Biased questions

Survey sources are identified

Low response rate

All of the above

Published survey

Custom third-party survey

complimentary survey

Survey you conduct on your own.

A survey of employee job satisfaction

A survey of employee benefits

A survey of employee performance ratings

A survey of compensation data for jobs in the same or similar industries

Conducting own survey only

Custom third-party surveys only

Published surveys only

Both conducting own survey and custom third-party surveys

Market from which an organization draws and loses its employees.

Market from which an organization sources its materials.

Market from which an organization sells its products and services.

Market from which an organization sources its funding.

Any market inequities are built in

Simple to administer

Takes into consideration the company's perceived value of a job

Legally defensible based on job content

Job duties and responsibilities

Work location

Industry type

Wage rate or salary

All of the above

Estimating the change in market rates for jobs based on scope data

Determining the market rate composite from several survey sources

Determining the premium for a hybrid job

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

Long-term incentives

Direct benefits expenses

Event tickets

Performance sharing

Spot bonus

Referral bonus

Sales commission

Traditional surveys focus on salary data, while market pricing surveys focus on pay structures

Traditional surveys are based on self-reported data, while market pricing surveys rely on compensation data from multiple sources

Traditional surveys are used by employers to determine internal pay structures, while market pricing surveys are used to determine external pay competitiveness

There is no difference between the two survey types

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

Job title, geographic location, industry sector

Age, gender, race

Employee performance ratings, job satisfaction surveys, attendance records

Sample size, participant base, statistical analyses, survey methodology, job matching procedures

The process of allocating emphasis to a particular job and combining two or more salary surveys.

The process of using market rates for two or more jobs to establish a market rate for a single hybrid job.

The process of analyzing a blend of data (scope, industry, location, etc.) to determine worth of a position.