Many companies have found our CompAnalyst Market Data (which offers a robust library of more than 15,000 jobs, industry’s largest) to be an invaluable tool to map market data to their internal positions. If so, you can then take steps to reconcile those against your company’s unique business priorities.Īs the backbone of your company’s compensation strategy, market pricing can help you ensure that your pay remains competitive and firmly rooted in the realities of your market.
Take a look at your market pricing and determine whether there is a big variance between your company’s jobs and what the market is paying for those positions. You can compare these non benchmark roles to benchmark jobs that require similar levels of skill, knowledge or responsibility or “slot” the job between two survey jobs your position may fall between. It is just as important to make sure you have an accurate rate of pay for non benchmark jobs within your organization. Step 7- Slot Non Benchmark Jobs Based on Comparable Worth There is a particular art to market pricing, so be sure that after you have determined the market value, you make adjustments to the data or age data to make sure it accurately represents your pricing philosophy. For example, will you look at the mean or median of the market? Step 6 – Adjust Data as Needed Also, determine the pay points that align with your compensation strategy. This will help you determine the proper market value of this specific job. Be sure to take into account the industry, company size and geographic location that you want the data to reflect. Select the appropriate scope of data from the survey to create the value of the job. Step 5 – Chose Appropriate Market Scopes and Determine the Job Value Each one of the jobs in ’s database is priced using 3-5 sources and you get access to the composite result. With ’s CompAnalyst MarketData we do this work for you.
Industry best practice is to use three to five market data sources to accurately establish a market price. Match your company’s jobs to the jobs in the surveys – but make sure to do this by job description, not job title. There are many survey vendors available, so be sure to select vendors that have proper job coverage, and make sure these vendors have relevant and accurate data across the industries, company size and geographic locations you need. Step 3 – Choose Market Dataĭetermine which surveys and market data you want to use to price your benchmark jobs. The number of benchmark jobs your company decides on will depend on the size of your company and the number of overall jobs. While every company has niche roles or part-time positions, it is important to understand the core roles you have that are also common in the recruiting market. Step 2 – Select Benchmark Jobsĭetermine which of these jobs are considered benchmark jobs that would be common in other similar organizations as well, such as an accountant.
Ensure the job descriptions describe the key functions and responsibilities of this job at your organization. Analyze these jobs and create brief job descriptions. Organize and understand the jobs you have in your company.
If you believe that market pricing could be the right approach for your company, where do you begin? Here are the essential steps to follow that can help you successfully market price the jobs in your company: Step 1 – Analyze Your Company’s Jobs and Create Job Summaries To Help You Get Started, Here are the Basic Steps to Market Pricing: Plus, market pricing also creates internal equity, engendering a sense of fairness among employees that colleagues in similar roles are being paid similar salaries. Having a deeper understanding of a job’s worth within a particular industry, company size and geographic location can provide a strategic position from which to value a job within your company. When companies grow and expand into new markets, the process becomes even more critical as it provides a method for analyzing and evaluating internal pay practices against existing market rates.īy taking the time to examine market data that is reliable and relevant, you just may find that you’re overpaying for that customer service rep in Cleveland after all. At a high level, market pricing enables companies to attract and retain top talent. Market pricing a job is the process used to determine the external value of a position, and it is fast becoming the norm for organizations as they establish competitive compensation practices.
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You are in the process of pricing a job, can you tell me the value of an entry-level accounting role in your organization? What about how much a software engineer or an administrative assistant is worth to your company? If you answered “no” to either of these questions, then it might be time to consider implementing market pricing into your compensation strategy.
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