Pay Surveys are techniques and instruments used to collect data about compensation paid to employees by all employers in a geographic area, an industry, or an occupational group. They must be carefully designed because their results are quoted and used in making compensation decisions. Surveys help managers gauge the exact market rates for various positions. Obtaining valid, reliable information about pay is critical to creating a compensation system that supports corporate goals.
Who conducts pay surveys?
Pay surveys are conducted by professional and consulting enterprise, trade associations, the government, unions and competitors, some examples of where to find surveys are listed in Exhibit 10-5. Many large organizations design and administer their own pay surveys.
There are a number of ways an organization can acquire competitive salary information: (1) purchasing an existing survey, (2) joining an existing survey, (3) conducting a survey, (4) doing a telephone survey of competitors, and (5) collecting information from proxy statements.