Laleh Hassibi, PayScale
Price the same job in any market, not just major metros
Market Differential Analytics, a new application developed by PayScale, can help your company more accurately determine compensation for your employees located in various cities and geographies. PayScale's innovative approach goes beyond the common methods of consulting firms which are often limited by geographic differential data in only large metropolitan markets. By applying sophisticated analytics to its massive database of 36 million compensation profiles, PayScale allows users to quickly determine competitive salary matches in any employment market: small, medium, or large. In addition, Market Differential Analytics allows companies to compare salaries by many other criteria — not just geography — to provide the most accurate results for a specific industry or size of company, for example.
"In today's competitive business environment, companies need more A New Approach
accurate compensation information to help them determine salaries across
geographies and in vastly different markets. By using new analytics technologies,
we can provide our customers with better insights in minutes, not days or weeks,
to help them make the most informed compensation decisions
and compete effectively in their markets."
-Mike Metzger, CEO of PayScale.
PayScale's Market Differential Analytics takes a new approach, determining compensation based on the actual position, in the exact location, and in the same industry. This contrasts to the approximation methods used by conventional salary consulting firms that rely on generalized cost of living data. Market Differential Analytics provides highly customizable reports that can be easily tailored for the specific employee positions and locations of each organization. By analyzing the data in its compensation database, PayScale offers this information in a fraction of the time it would take consultants using spreadsheets, saving organizations time and money.
PayScale customer Jamie Naughton, Director of Compensation for CovenantDove, a leading provider of assisted living, long-term care, and rehabilitation services with facilities in 12 states has this to say about PayScale's newest application:
"We hire registered nurses and healthcare aides in more than 30 locations,
many of them outside major metropolitan areas. In the past, we relied on
geo differential calculations from a consulting firm that could only give us
information on the big cities, and then estimate the impact of being outside
of a major metro. With PayScale, we can pinpoint salaries in Vicksburg,
Mississippi and Wadesboro, North Carolina — exactly where we are hiring."
Examples of How Market Differential Analytics Helps You Make Better Business Decisions
Say your office has 500 employees, and the company you most often compete with for talent has 5,000 employees. You could decide what you need to pay by running a market analysis that defines your market by company size. Market Differential Analytics would show you would need to pay 4.61% higher than you do now to win the competition for talent against the larger companies in your market.
Or, maybe you are a large company considering several different cities in which to open your next office location. You could use Market Differential Analytics, defining your market by geographic location, to see that opening that next office in Portland could save your company 10.92% in compensation costs compared to Houston.
Want to see how PayScale's newest application, Market Differential Analytics, can help your company be more competitive? Click the button below to get a customized demonstration.