Fundamental Compensation Metrics: Get the Basics on Gathering and Calculating Data to Pay Employees Appropriately

John A. Rubino
From: Dec 01, 2023 - To: Dec 31, 2023
Recorded Webinar


Compensation metrics are intrinsic to the smooth operation of your company. If you're looking to improve your compensation program, it's important to look at the base pay metrics for your organization. Your base pay metrics should align with your current business issues. If you don't analyze your metrics, you run the risk of missing an opportunity to optimize your strategy to ensure that it fits in with your overall compensation philosophy.

There are many types of both internal and external compensation metrics that can be used to achieve the goal of improving an organization's overall compensation strategy,  including compensation and salary penetration ranges. It's also important to take a close look at a number of factors, including annual payroll, average hourly rate, number of employees, and more.

Comp metrics consist of more than just comparing how your salaries stack up against the competition. The more you can base your numbers on solid industry metrics — and then successfully communicate that to employees — the better off your company s bottom line will be overall.

Learning Objectives:-

  • The most useful compensation metrics for managing your organization's compensation plan
  •  What is the lingo, and how to use it with compensation analytics
  •  Most commonly used metrics, and how to understand them
  •  How to accurately calculate salary range penetration
  •  The relationship between salary range penetration and compa-ratio
  •  Linear regression: what is it, and how to use it effectively
  •  How reviewing employee compensation within a given salary range can help you zero in on whether your salary ranges are too wide or too narrow
  •  Best practices for using compensation metrics to determine if you're paying at, above, or below the market target
  •  Key questions you should be asking about your pay practices and overall compensation philosophy once you've gathered your data

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