Survey: Common Compensation Practices
April 9, 2019, 2:03 p.m.
The Compensation Tool provides both Compa-Ratios and Position in Range, so organizations that use one or the other, don’t have to make a choice or change their practices.
Compa-Ratio is the method to review an employee’s placement within the salary range.
• The majority of organizations (61%) utilize compa-ratio, as compared to position in range
• A quarter of companies responding (24%) utilize Position in Range.
• 15% of organizations utilize both Position in Range and Comp-Ratio equally.
The Compensation Tool allows users to review both Total Cash Compensation and Total Target Cash Compensation so Practitioners can make instant comparisons and better decisions concerning the market data.
When aligning to Total Cash in the Market, more organizations align to Total Target Cash than Total Cash.
• The slight majority of organizations (53%) review Total Target Cash
• Slightly more than a third of companies responding (34%) use Total Cash Compensation.
• The remaining 13% of organizations utilize both Total Compensation and Total Target Compensation equally
Whether your organization uses salary grades or market reference points, the Compensation Tool can be used to review all of your jobs and salary structures.
Salary Grade structures are more prevalent than market reference points.
• More than three-quarters of (76%) of organizations use salary grades.
• Only 24% of responding organizations use the market reference points.
The Compensation Tool allows for robust reporting and analytics that allows significant flexibility. Users have the ability to enable or disable charts and tables, employee or job dashboards can be created on the fly to answer various questions or provide different types of dashboards.
Pay Transparency with regards to salary ranges is still in the minority.
• Approximately 3/4 of organizations do not allow their employees to see the salary range for their specific role.
• Only 24% of organizations allow organizations to see their specific salary range.
The Compensation Tool allows users to review, search and filter both incumbent weighted and company weighted market data side-by-side. The ability to compare various survey scopes is one of the key ways the Compensation Tool makes market pricing easier, and allows you to make more informed decisions.
Incumbent weighted data is more commonly used when reviewing the market data.
• The majority of organizations (58%) utilize Incumbent Weighted Data
• Slightly less than a quarter of companies responding (24%) use Company Weighted Data.
• Only 18% of organizations utilize both Total Compensation and Total Target Compensation equally
The Compensation Tool facilitates the review and decision making process by allowing users to market price multiple versions of the same job using various survey data scopes. With the Compensation Tool, it’s easy to price the same job with local data or national data and compare the market differences.
National market data is used slightly more frequently than national data with a geographic differential.
• Approximately 53% of responding organizations use National Market data with (or without) a geographic differential applied.
• Less than half, 47%, of organizations use local market data.