p.26
Participating in Salary Surveys
What types of information are typically requested in a salary survey?
Job or incumbent information and organization information.
p.23
Data Integrity and Accuracy
What factor increases the representativeness of survey data?
The number of participants involved.
p.28
Participating in Salary Surveys
What should you do before submitting data in a salary survey?
Review the data prior to submission.
p.26
Participating in Salary Surveys
What organization information is typically requested in salary surveys?
Annual revenues, information reported by geographic region, and total number of employees.
p.2
Purpose of Salary Surveys
How can salary surveys help organizations?
By diagnosing compensation problems.
p.27
Participating in Salary Surveys
What is a key feature of HRIS systems in relation to salary surveys?
They contain individual employee information that may require data manipulation for surveys.
What should be documented regarding specific surveys used?
The specific surveys used and the reasons for their selection.
What is the primary responsibility of the Director of Manufacturing Operations?
Oversee management of all direct manufacturing activities for all product lines at all plants.
p.18
Decision Factors for Survey Selection
What survey is suitable for the Plant Human Resources Manager?
Local HR Group Survey, as it offers insights into HR practices within the local context.
What practice is important for calculating the prevailing market rate?
Selecting the most appropriate number of surveys, which may vary by job.
p.16
Decision Factors for Survey Selection
What does the chart in the sample labor market represent?
Types of labor markets identified for three job groups in a pharmaceutical firm.
p.2
Purpose of Salary Surveys
What is one reason salary surveys are used?
To gather data on policies and procedures.
p.23
Data Integrity and Accuracy
How does the job description match affect survey data accuracy?
The closer the job match to the survey description, the more accurate the data will be in reflecting the market.
p.7
Decision Factors for Survey Selection
What is one advantage of using more sources in salary surveys?
It yields a larger database with more information.
p.18
Decision Factors for Survey Selection
Which survey would you choose for the Director of Manufacturing Operations?
Industry Specific Survey, because it provides relevant data specific to the manufacturing sector.
p.4
Sources of Salary Survey Data
Why might periodicals and publications be less useful in formal market pricing efforts?
They often do not include adequate job descriptions.
p.3
Sources of Salary Survey Data
What is the importance of acquiring adequate survey data?
It provides foundational information for assessing an organization’s compensation competitiveness.
p.25
Participating in Salary Surveys
How does participation in salary surveys enhance their value?
Your participation enhances the value of the survey and encourages others to participate.
p.26
Participating in Salary Surveys
What incentive information is included in salary survey requests?
Target award, actual award, and equity-based compensation.
p.20
Data Integrity and Accuracy
How does sample size affect the confidence in survey data estimates?
Larger sample sizes provide greater confidence in these estimates.
p.2
Purpose of Salary Surveys
What is another purpose of salary surveys?
To defend current practices.
p.21
Data Integrity and Accuracy
What are the three components that impact survey quality?
Submissions, Data, and Survey Vendor Auditing.
p.7
Decision Factors for Survey Selection
What can clustering data from multiple sources indicate?
It can reveal patterns or clustering of data.
p.24
Data Integrity and Accuracy
What types of issues do analysts look for when scrubbing survey data?
Outliers, incomplete submissions, odd data points, trends, and correlations.
p.27
Participating in Salary Surveys
What is the benefit of setting up an internal process for collecting data in HRIS?
Ongoing participation in salary surveys becomes a simple task of refreshing and submitting data.
What measures are important to document in job pricing?
Measures of central tendency used.
What is the final step in the job matching exercise?
Determine if you would use each survey.
p.20
Data Integrity and Accuracy
What factors impact the accuracy of survey data?
Sample size, participant base, statistical analyses, survey methodology, and job matching procedures.
p.27
Participating in Salary Surveys
What does HRIS stand for?
Human Resources Information System.
p.8
Types of Survey Data Formats
What is the norm for displaying survey data?
Presenting all of the data about one position in the same document.
p.27
Participating in Salary Surveys
What types of information are typically contained in an HRIS regarding compensation?
Pay grade, wage rate or salary, pay range information, salaried/hourly or exempt/nonexempt status.
p.7
Decision Factors for Survey Selection
How do multiple sources help in salary surveys?
They aid in avoiding any particular bias.
p.7
Decision Factors for Survey Selection
What might determine the 'right' number of sources to use?
The position level in question.
What should you determine after reviewing the job descriptions?
The strength of the match.
p.25
Participating in Salary Surveys
What advantage does participating in salary surveys provide regarding job matching?
It simplifies the process of matching your jobs to the survey jobs for data analysis.
p.12
Statistical Data Points in Surveys
What is the purpose of measuring central tendency in survey data?
To find the most representative or expected value in a set of survey data.
p.12
Statistical Data Points in Surveys
How does the median differ from the mean in terms of extreme values?
Extreme values affect the mean but do not affect the median.
p.2
Purpose of Salary Surveys
Why is it important to align compensation strategy?
To align with human resources strategy, business strategy, and the organization’s mission and vision.
p.26
Participating in Salary Surveys
What specific job or incumbent information is requested in salary surveys?
Internal job code, job title, wage rate or salary, pay range information, number of employees, incentive information, and number of direct reports.
p.20
Data Integrity and Accuracy
What is the general rule regarding survey data?
Survey data provides a best estimate of the 'true' rates in the market based on samples.
p.24
Data Integrity and Accuracy
What is the purpose of the survey vendor's auditing process?
To review the survey results for accuracy and integrity.
p.4
Free and Complimentary Data Sources
Why should one ensure that information from the Internet is timely?
To ensure it includes adequate descriptions of the benchmark jobs.
p.12
Statistical Data Points in Surveys
What does the weighted mean reflect?
It reflects the number of incumbents in a survey and the market value of the job.
p.4
Data Integrity and Accuracy
What is a potential issue with self-reported data?
It may be less reliable than data collected directly from employers.
p.15
Decision Factors for Survey Selection
Why should survey data not be the sole source for determining pay ranges?
Because other factors like government labor statistics, executive data, and company compensation philosophy should also be considered.
p.14
Statistical Data Points in Surveys
What does the 60th percentile represent in salary surveys?
It represents the value that 60% of companies' salaries are equal to or less than.
p.28
Participating in Salary Surveys
What is important to ensure regarding the data reported in a survey?
Make sure the data is what the survey is requesting.
p.25
Participating in Salary Surveys
What is a key benefit of participating in salary surveys?
May provide a substantial discount on the purchase price or subscription of survey data.
p.6
Decision Factors for Survey Selection
What is the nature of survey data when properly researched?
It is an objective tool to guide compensation decisions.
p.23
Data Integrity and Accuracy
What impact does the age of the data have on its accuracy?
Older data is less likely to reflect current market levels.
Why is it important to document sources and processes in job pricing?
To ensure transparency and accuracy in pricing jobs.
p.1
Purpose of Salary Surveys
What can salary surveys document?
Budget and pay structure movement.
p.21
Data Integrity and Accuracy
What does the 'Submissions' component refer to in survey quality?
The accuracy of the submissions to the survey.
p.5
Decision Factors for Survey Selection
Why is reliability important when selecting survey data?
To ensure the survey sponsor is reputable and that the data has been verified.
p.12
Statistical Data Points in Surveys
What is the characteristic of the unweighted mean?
Each participating company is given the same weighting, regardless of its participant count.
p.21
Data Integrity and Accuracy
What role does 'Survey Vendor Auditing' play in survey quality?
It assesses how extensively the survey vendor has audited the results of the survey.
p.17
Decision Factors for Survey Selection
What challenge do high-demand jobs present in terms of survey data?
Market rates may increase rapidly, which may not be reflected in current survey data.
What is the primary responsibility of a Marketing Manager according to the position description?
Works with marketing staff to ensure internal customer issues and marketing requests are met.
What additional responsibilities does the Human Resources Manager in Survey 4 have?
Responsible for all government contracts reporting and compliance issues with federal and state agencies.
p.31
Compensation Budget Components
What does the Plant Human Resources Manager manage related to employee benefits?
Administer benefit activities including annual open enrollment and changes to coverage.
p.20
Data Integrity and Accuracy
Is it possible to determine the exact market rate for any job?
No, it is impossible to determine the exact market rate.
p.23
Data Integrity and Accuracy
Why is it important to consider survey scope factors?
To ensure the survey accounts for the positions of interest, as geographic area, company size, or industry can lead to varied rates.
p.1
Purpose of Salary Surveys
What is one primary reason for using salary surveys?
To price jobs and determine market positions.
p.4
Free and Complimentary Data Sources
What are some free sources of salary survey data?
Trade and industry associations, the Internet, periodicals, professional recruiters, and government data.
p.22
Data Integrity and Accuracy
What should be considered regarding the survey vendor?
The vendor's reputation for having a well-organized data submission process.
p.12
Statistical Data Points in Surveys
What question does the weighted mean answer?
On average, what are incumbents in a particular job paid?
What is the primary responsibility of a Plant Human Resources Manager in Survey 1?
Responsible specifically for labor relations in a specific production business unit.
p.24
Data Integrity and Accuracy
How do analysts identify anomalies in survey data?
By comparing historical data to current year data.
p.22
Data Integrity and Accuracy
What role do clear instructions play in data submission?
Clear and concise instructions can help alleviate potential data submission errors.
p.22
Data Integrity and Accuracy
Why is the time allowed for data gathering important?
Quality surveys provide adequate time from request to submission deadline, impacting data accuracy.
p.31
Compensation Budget Components
What is the primary role of a Plant Human Resources Manager?
To administer and manage human resource programs within a manufacturing plant.
p.31
Compensation Budget Components
What areas do the human resource programs cover?
Employee relations, recruiting, salary administration, training and development, safety, health benefits, and employee services.
What compliance issues must the Plant Human Resources Manager address?
EEO, OFCCP, DOL claims, and audits.
What role does the Director play in communication within the organization?
Acts as a liaison between department management and subordinate levels to inform personnel of communications and decisions.
p.31
Data Integrity and Accuracy
What is a responsibility of the Plant Human Resources Manager concerning safety?
Manage plant safety and workers' compensation prevention programs.
p.31
Compensation Budget Components
What educational background is required for the Plant Human Resources Manager position?
A Bachelor’s degree in human resources or a related field.
What is the first step in the job matching exercise?
Read the two job descriptions and review position descriptions from various salary surveys.
p.16
Decision Factors for Survey Selection
What is the purpose of identifying labor markets in a pharmaceutical firm?
To analyze compensation and job market trends.
p.8
Types of Survey Data Formats
What are summary statistics in survey data?
A format that provides a simple and accurate description of the data, including mean, median, sample sizes, and percentiles.
p.22
Data Integrity and Accuracy
Why is the accuracy of data vital in a survey?
It is essential for a valid survey.
p.28
Participating in Salary Surveys
What is a common issue when transferring data between applications?
Data might not transfer correctly, leading to inaccuracies.
p.8
Types of Survey Data Formats
What does simple linear regression involve?
Only one independent variable.
p.7
Decision Factors for Survey Selection
What is a potential downside of using too many sources?
It may 'muddy the water' and complicate the analysis.
p.22
Data Integrity and Accuracy
How does the participation of organizations affect data accuracy?
Well-known organizations with consistent participation are likely to have better submission processes.
p.15
Participating in Salary Surveys
What is essential to obtain before selecting surveys?
Management's support on utilizing survey data.
p.4
Sources of Salary Survey Data
How can professional recruiters serve as a source of salary survey data?
They provide insightful information and can be both internal and external.
What does the Plant Human Resources Manager in Survey 3 primarily focus on?
Administering and communicating various human resources programs and screening applications for potential employment opportunities.
p.18
Decision Factors for Survey Selection
Why would you choose an Industry Specific Survey for the Director of Manufacturing Operations?
It provides targeted data that reflects industry standards and practices.
p.5
Decision Factors for Survey Selection
What trade-off might be considered when choosing between custom third-party surveys and free services?
Custom surveys may incur higher costs, but free services may lack robust data.
p.15
Decision Factors for Survey Selection
What factors are key to understanding labor markets for survey selection?
Industry, organization size, geographic location, and high-demand jobs.
What is a common task performed by all Plant Human Resources Managers across the surveys?
Conducting new hire orientations and participating in local salary and benefits surveys.
p.15
Sources of Salary Survey Data
What type of companies specialize in salary survey sources?
Companies that catalog and maintain information about salary survey sources.
p.31
Participating in Salary Surveys
What is one of the key responsibilities of the Plant Human Resources Manager regarding recruitment?
Actively recruit, screen, and hire plant employees for job openings.
What is the focus of the Director of Manufacturing Operations in Survey C?
Responsibility for the entire manufacturing process of a specific product line.
p.11
Statistical Data Points in Surveys
How can the regression formula be used in pay analysis?
To predict pay levels for jobs at various points along the line of best fit.
p.31
Compensation Budget Components
How many years of experience are typically required for this role?
Five to eight years of experience.
p.8
Types of Survey Data Formats
What is a common use for simple linear regression in surveys?
To analyze scope-sensitive jobs, such as determining HR executive salary levels based on the number of employees.
p.28
Participating in Salary Surveys
What should you check for when reviewing data for inadvertent symbols?
Ensure there are no unnecessary commas, monetary unit signs, etc.
p.1
Compensation Budget Components
What are some components of an organization's compensation budget?
Merit pay 3%, market adjustment 5%, promotions 5%, annual structure movement 1.75%.
p.28
Participating in Salary Surveys
How should you report data for accountants in a salary survey?
Report aggregate data for all accountants, not individual amounts.
p.3
Sources of Salary Survey Data
What are published surveys?
Surveys available for purchase, with prices varying by scope, analysis type, and sophistication.
What is the primary responsibility of the Director of Operations in Survey A?
Overall accountability for the entire manufacturing process for all company product lines.
p.22
Data Integrity and Accuracy
What can help assess the likelihood of accurate submissions?
Considering the reputation of the vendor, participating organizations, clarity of instructions, and time allowed for data gathering.
What is the generally accepted rule for a strong job match?
If your job matches 80% or higher.
How many years of experience in manufacturing management is required?
Ten or more years, preferably in a process-oriented operation.
Who might find record keeping valuable within an organization?
Internal stakeholders such as management and HR.
What types of projects does the Director initiate and coordinate?
Major projects such as plant layout changes and installation of capital equipment.
What does the Director of Manufacturing Operations in Survey C monitor?
Overall inventory levels and provides input to senior management on marketing and sales issues.
p.11
Statistical Data Points in Surveys
What is an example of a predicted pay level using simple linear regression?
Approximately 240,000 for an HR management executive in a company with 20,000 employees.
p.13
Statistical Data Points in Surveys
Why might market pay for a position not cluster closely around a middle point?
Due to factors like pay philosophy, job tenure, and variations in responsibility.
p.27
Participating in Salary Surveys
How do many survey vendors facilitate data submission?
By providing automated processes for submitting data.
p.1
Purpose of Salary Surveys
What type of decisions can be informed by salary surveys?
Compensation-related decisions.
p.21
Data Integrity and Accuracy
What does the 'Data' component assess in survey quality?
The accuracy of the data being reported by the survey.
What is a key goal for the Director of Manufacturing Operations?
To implement and monitor consistent manufacturing processes and standards to maximize productivity.
p.24
Data Integrity and Accuracy
What are outliers in the context of survey data?
Data points that significantly differ from other observations.
What should the manufacturing plans ensure?
That products conform to established customer and company quality standards.
p.28
Participating in Salary Surveys
What should you consider when reporting pay amounts in a salary survey?
Account for full-time versus part-time pay amounts.
What is a market rate composite?
A developed rate for each job based on multiple surveys.
p.14
Statistical Data Points in Surveys
What does the 75th percentile signify?
It signifies that 75% of the data points are equal to or less than this value.
How can compensation professionals rate job matches?
By including a job description or rating the match as strong (80%+), equal (75%), weak (70%), or no match (<70%).
What should you do if your job matches parts of multiple jobs in a survey?
Call the survey vendor for further clarification.
What additional responsibility does the Director of Operations in Survey B have?
Overall management responsibility for several cross-functional work teams.
How does the Plant Human Resources Manager support plant managers?
By providing guidance in all employee relations matters.
p.13
Statistical Data Points in Surveys
What should be reported when using a trimmed mean?
The amount of trimming applied to the data.
p.5
Decision Factors for Survey Selection
What should be considered regarding the time factor in survey data selection?
How much time it will take to gather data and how quickly it must be obtained and analyzed.
p.8
Types of Survey Data Formats
How can simple linear regression be used in salary surveys?
To establish a base pay line.
p.5
Decision Factors for Survey Selection
What does availability refer to in the context of survey data?
Whether current data is available in time to meet the organization’s needs.
p.12
Statistical Data Points in Surveys
What question does the unweighted mean answer?
On average, what are companies paying a particular job?
What method is used to standardize data from multiple surveys?
Aging the data to a common point in time.
p.3
Sources of Salary Survey Data
What benefit do survey participants often receive from survey providers?
A substantial discount on the purchase price of the survey.
p.3
Sources of Salary Survey Data
What are custom third-party surveys?
Surveys conducted by a third party to meet specific needs and specifications.
p.17
Decision Factors for Survey Selection
What should organizations create to better assess high-demand jobs?
New skill and skill-level definitions.
What is the main difference between the Director of Operations in Survey A and Survey B?
Survey A oversees all company product lines, while Survey B focuses on a single product line at one manufacturing plant.
Why is it preferable to match your internal job with only one job per survey?
It simplifies data submission and analysis of results.
p.11
Statistical Data Points in Surveys
In the context of simple linear regression, what does 'x' represent?
The independent variable.
p.13
Statistical Data Points in Surveys
What is a trimmed mean?
The mean of the middle part of the data, excluding extreme values.
p.13
Statistical Data Points in Surveys
What ethical issue can arise from trimmed means?
Analysis can be biased if trimmed means are not calculated correctly.
What are some key responsibilities of a Plant Human Resources Manager in Survey 2?
Overseeing employee relations, labor relations, selection and employment, performance management, and training and development.
p.18
Decision Factors for Survey Selection
Which survey would be appropriate for the Executive Assistant position?
Geographic Specific Survey, to understand compensation trends in the specific location.
p.14
Statistical Data Points in Surveys
What are the common percentiles provided within survey data?
10th, 25th, 50th (median), 75th, and 90th percentiles.
p.15
Sources of Salary Survey Data
What should be considered when selecting survey sources?
The reputation and quality of the sources.
What is one of the duties of the Director regarding employee production levels?
Achieve optimum employee production levels with minimal overhead and raw material costs.
What key aspect does the Director of Operations in Survey A focus on?
Overall quality, productivity, and cost improvement.
What tools are used for documenting results in job pricing?
Job pricing worksheets and market index of competitiveness.
What role does the Director of Operations in Survey A play in strategic direction?
Has a pivotal role in the strategic direction of the manufacturing process, including feasibility studies on product enhancements.
p.17
Decision Factors for Survey Selection
Why is acquiring data more frequently important for hot-skills jobs?
Because market conditions for these jobs can change rapidly.
What is a key responsibility of the Director of Manufacturing Operations in Survey C regarding staff?
Ensures that all staff follow standard work methods and comply with standard operating procedures.
p.5
Decision Factors for Survey Selection
What should be assessed regarding data format when selecting survey data?
If the data is formatted to provide specific information, such as by industry or geographic area.
p.24
Data Integrity and Accuracy
What does 'scrubbing' the data involve?
Reviewing survey results for accuracy and identifying issues.
p.14
Statistical Data Points in Surveys
What does the 25th percentile indicate?
It indicates that 25% of the data points are equal to or less than this value.
p.28
Participating in Salary Surveys
What must be ensured when dealing with employees in multiple countries?
Different currencies must be properly reflected.
What type of degree is preferred for the Director of Manufacturing Operations position?
B.A./B.S. in industrial, mechanical or business administration, or a four-year technical degree in a related discipline.
p.17
Compensation Budget Components
What drives skill-based pay?
Supply and demand economics.
p.13
Statistical Data Points in Surveys
What is an example of calculating a trimmed mean?
Excluding the highest and lowest data points and taking the mean of the remaining points.
p.15
Participating in Salary Surveys
What should management participate in for difficult jobs?
Job matching and descriptions.
What criteria should be used to match jobs in surveys?
Job content, job accountabilities, and a leveling chart provided by some surveys.
p.11
Statistical Data Points in Surveys
What does simple linear regression analyze in pay analysis?
The relationship between an independent variable (e.g., number of employees) and a dependent variable (e.g., base salary or total compensation).
How can results be graphically represented?
Using scatterplots or simple linear regression of internal pay versus market pay.
p.17
Decision Factors for Survey Selection
How can organizations determine the premium for hot skills?
By defining base skills and capturing compensation data on them.
p.31
Participating in Salary Surveys
What type of training does the Plant Human Resources Manager provide?
Train employees in corporate directed programs.
p.13
Statistical Data Points in Surveys
What should not be done when trimming data?
One cannot trim just high values or just low values to sway the data.
What is job matching?
The process of matching your organization’s jobs to those within the surveys to which you provide data and/or choose to use.
p.4
Data Integrity and Accuracy
What should be considered when utilizing government data?
The reliability and currency of such data.
p.17
Decision Factors for Survey Selection
Why might market data undervalue certain jobs?
Because some jobs may be critical to your organization but not to other employers.
p.18
Decision Factors for Survey Selection
What is the benefit of using a Local HR Group Survey for the Plant Human Resources Manager?
It helps in understanding local HR trends and practices that are directly applicable.
p.17
Decision Factors for Survey Selection
What is a suggested approach for measuring the market for high-demand jobs?
Shift focus from broadly defined job roles to specific job-related skills.
p.18
Decision Factors for Survey Selection
Why is a Geographic Specific Survey suitable for the Executive Assistant?
It allows for comparison of compensation and benefits specific to the geographic area.
p.3
Sources of Salary Survey Data
Who can conduct custom third-party surveys?
Consultants, professional associations, or graduate students from local universities.
p.3
Sources of Salary Survey Data
What is a potential cost benefit for participants in a company-sponsored survey?
They may pay nothing to receive a copy of the survey results.
p.17
Compensation Budget Components
How does skill-based pay fluctuate compared to market rates?
It tends to fluctuate more dramatically from quarter to quarter in reaction to the market.
p.13
Statistical Data Points in Surveys
Why are extreme values excluded in surveys?
To minimize their impact on final data recommendations.
p.31
Data Integrity and Accuracy
What is a key compliance responsibility of the Plant Human Resources Manager?
Ensure legal compliance with various governmental laws and regulations.
p.11
Statistical Data Points in Surveys
What correlation is typically observed in scope-sensitive jobs like management?
A strong correlation between company size and pay levels.
