What are the various statistical tools used while arriving at the compensation of any organisation?
From India, Ahmadabad
From India, Ahmadabad
Hi!
The Compensation Structure in an organization is being designed and developed thru the Job Evaluation (JE) program. This program teaches you how to create job hierarchy within your organization. The hierarchy is called Job Grades (JG). The number of JG that you can create depends on the type of JE System that you are using. If you use the classical method, then you can create more JGs than when you use Broad Banding.
Each Job Grade carry a minimum, midpoint, and maximum rate. The rates are determined by using market data, called Compensation Survey. This survey shows you the prevailing market rate per position in the industry where your company belongs. You use the data to benchmark your company's position and decide which figure to use, i.e. the low percentile, the median rate, the high percentile, or the mean.
Each JG has a spread. The size of the spread is dependent on the amount that you would like to put in each JG.
Statistical tool? Yes. The computation of the spread, the range, the midpoint, the median, the mean, the low and high percentiles, etc. all need statistical tools.
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
From Philippines, Parañaque
89The Compensation Structure in an organization is being designed and developed thru the Job Evaluation (JE) program. This program teaches you how to create job hierarchy within your organization. The hierarchy is called Job Grades (JG). The number of JG that you can create depends on the type of JE System that you are using. If you use the classical method, then you can create more JGs than when you use Broad Banding.
Each Job Grade carry a minimum, midpoint, and maximum rate. The rates are determined by using market data, called Compensation Survey. This survey shows you the prevailing market rate per position in the industry where your company belongs. You use the data to benchmark your company's position and decide which figure to use, i.e. the low percentile, the median rate, the high percentile, or the mean.
Each JG has a spread. The size of the spread is dependent on the amount that you would like to put in each JG.
Statistical tool? Yes. The computation of the spread, the range, the midpoint, the median, the mean, the low and high percentiles, etc. all need statistical tools.
Best wishes.
Ed Llarena, Jr.
Managing Partner
Emilla Consulting
From Philippines, Parañaque
HI Ed,
That was quite interesting. I would like to learn more about this topic, more about compensation benchmarking plus statistical tools used to arrive at a particular no. (salary) for a particular position in relation with HR ofcourse to be precise. Shall be grateful is you could possibly suggest any information (books/journals) or so where I could learn more on this topic. I know a bit about percentiles in stats but I would like to learn how to basically link them with the compensation part in the HR domain to arrive at a particular value for a specific position. Would appreciate your response. Thank you.
Arvind
From Italy, Rome
That was quite interesting. I would like to learn more about this topic, more about compensation benchmarking plus statistical tools used to arrive at a particular no. (salary) for a particular position in relation with HR ofcourse to be precise. Shall be grateful is you could possibly suggest any information (books/journals) or so where I could learn more on this topic. I know a bit about percentiles in stats but I would like to learn how to basically link them with the compensation part in the HR domain to arrive at a particular value for a specific position. Would appreciate your response. Thank you.
Arvind
From Italy, Rome
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