Real-time market compensation data is relatively new in the world of compensation management, but it offers a compelling value-add to compensation planning. PayScale’s compensation management software products provide salary information for 15,000 job titles, all specific to industry, employee experience level, company size, market location and numerous other variables.
But how?
Using 55 million crowd-sourced salary surveys — the largest database of individual salary profiles in the world — we’re able to identify salary ranges and pinpoint a median salary for each of these jobs. Our collected salary survey data powers our software tools, which provide employers with real-time market compensation data, helping them to make fair offers to prospective employees and preventing them from overpaying or underpaying employees currently on their payroll.
More than 150,000 new salary survey records are added to our database every month, and our market compensation database is updated daily to ensure the most detailed, up-to-date compensation information available. We classify titles, industries, locations and other compensable factors into consistent groups, using our proprietary internal taxonomies as well as proprietary mappings to third-party data sources to ensure accuracy; the breadth and depth of the data assets we use to standardize and match data is unparalleled.
As for the authenticity and validity of submitted salary surveys, PayScale applies a set of propriety algorithms to assure the accuracy of every data point used in our compensation models and reports. Our data team continuously compares PayScale data with external sources, and our research has shown that our real-time market compensation data is strongly correlated with other sources, including data submitted by employers.
This research has also shown the breadth and depth of our data is wider than other sources due to our collection methods and software tools; we allow users to precisely describe and price positions, including both the type and size of the organization, and the skills and years of experience in the position.
Does your organization need accurate market compensation data in order to attract and retain top talent? Learn more about PayScale’s modern compensation software here.
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