1. Pay Survey Practices - Part II
Measuring Pay Data
Distributions:
Normal - Bell shaped curve - rarely appropriate
Non-Normal - pay data is unevenly distributed; more typical of pay data collected from surveys
Measures of Central Tendency used to report Pay
Median - the middle value of an ordered sequence of data
Mean - sum of data divided by number of observations
Unweighted - each company is an observation
Weighted - each employee is an observation
MGMT Managing Employee Reward Systems

2. Pay Survey Practices - Part II
Measures of Variation used to Report Pay
Range of Pay Data
Minumum, Maximum, Midpoint
Quartertile - 1st , 2nd (above midpoint); 3rd, 4th (below )
Standard Deviation - distance of data from mean in a normal distribution.
Typical Market positions
Lead the market
Lag the Market
Match the Market
MGMT Managing Employee Reward Systems

3. Pay Practices - Part II (Gomez-Mejia & Balkin, 1992)
Recommended Pay Survey Practices
Relevance
Match on Job Descriptions (not Titles)
Consistent Use of Same Statistical Measures
Keep Pay Data Current
Monitor Effectiveness Using HR Benchmarks
MGMT Managing Employee Reward Systems