Salary Surveys and Market Pricing

A major goal of a competitive compensation program is to provide compensation that is consistent with the organization's external labor market. This would be to maintain external equity by paying employees salaries and benefits at pre-established levels in relationship to salaries paid to similar employees in competitor organizations.

Organizations use wage and salary surveys to provide them with the primary data for use in pricing jobs. Therefore, it is necessary to identify reasonable surveys, which will provide data to accurately price the jobs, and ensure that jobs being priced are a valid comparison to the survey position.

K. Gordon & Associates can conduct market studies, which will provide competitive data for identified benchmark positions. To establish the competitive market levels, we use data from a variety of resources including information on positions among comparable organizations, information available to the organization, published surveys and K. Gordon & Associates' network of contacts and confidential data sources. We conduct a detailed analysis of the compensation currently paid to your employees. This compares the market information we obtain, and identifies the relationship of your jobs to compensation levels paid by competitors. This ensures the compensation program is competitive both internally and externally and is a positive retention and motivational tool.