Industry
- Labor intensive (e.g., education, health) (lower pay levels)
- Technology-intensive (e.g., energy, pharma) (higher pay levels)
Employer size
- Bigger employers tend to pay higher (they can afford)
Employee preferences
- What do employees value most in their work?
- Challenging assignments vs. pay (Rynes, 2004)
Organizational strategy
- What is the strategic focus?
- Lead the market for jobs that matter to your organizations
Managers need to define the labor markets that are relevant