Employee Loyalty Methodology
Many factors can influence an employee's tenure with a company (e.g. age, contract/temporary status, etc.), making it difficult to quantify "employee loyalty." For this report, we do our best to account for as many of those factors as possible, based on the data and sample size available via the PayScale employee survey.
Overview:
1. Included in this data sheet is the following for all Fortune 500 companies for which we have data:
(a) Median Age of Employees
(b) Median Tenure with Employer
(c) Median Pay of Employees
(d) Percentage of Employees with Low Stress
(d) Percentage of Employees with High Satisfaction
(e) Industry
2. In addition, we also provide the median tenure at the Fortune 500 companies where we have enough data.
We utilized data collected from employees who informed us they worked at a Fortune 500 company over the last year (July 1st, 2012 to July 1st, 2013), which resulted in a sample size of 250,000 profiles.
Definitions:
Fortune 500 Companies: Utilizing the list produced by Fortune (see: http://money.cnn.com/magazines/fortune/fortune500/), we defined Fortune 500 companies as the companies on this list, as well as their subsidiaries. Since there are millions of employers in the U.S., we wanted to narrow the scope of employers we focus on to a recognizable list.
Median Age: This is the 50th percentile of the age data we collect from our users. Half the people working at this company will be older, while half will be younger.
Median Years with Employer: This is the 50th percentile of the tenure data we collect form our users. Half the people working at this company will have worked there longer, while half will have worked there for a shorter period.
Total Cash Compensation (TCC): TCC combines base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, and other forms of cash earnings, as applicable. For example, when overtime is typical for a given job, TCC also includes overtime pay. It does not include equity (stock) compensation, cash value of retirement benefits, or value of other non-cash benefits (e.g., healthcare).
National Median Pay: The median pay is the national median (50th Percentile) annual total cash compensation. Half the people doing the job earn more than the median, while half earn less.
Range in pay at a company can be very wide depending upon job title, years of experience, scope of responsibility, educational background, etc. For example, pay can be higher than the stated median pay if the worker has higher levels of experience and responsibility.
Percentage of Workers with Low Stress: This is the percentage of workers within a company that answer the question, "How stressful is your job/work environment?" with "My job is relaxing," "Not stressful," or "A little stressful."
Percentage of Satisfied Workers: This is the percentage of workers within a company that answer the question, "How satisfied are you in your job?" with "Extremely satisfied" or "Fairly satisfied."
Industry: This is the broadest industry category defined by the North American Industrial Classification Systems (NAICS). See here for definitions: Census.gov
