Is there a problem with todays pay data?
We have noted that the reported ranges of actual salaries are becoming wider, an indication that (1) organizations are setting salaries without the benefit of explicit labor market indicators, and/or (2) job matching in connection with survey participation has become significantly less disciplined than it was in the past. In addition, your organization is now faced with increasing challenges from your employees due to their use of Internet sources for pay data. Those of us involved in compensation management understand the shortcomings associated with the use of Web-based “information,” but others seem to be fascinated with the availability of these free data. Unfortunately, you will be increasingly unable to respond in the best interests of your organization without statistically valid information on job-specific wages, salaries and other cash compensation elements.
