payscale comp foundation series: labor markets
TRANSCRIPT
Labor Markets
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IntroductionRita PattersonOnboarding Team Lead
Paige Hanley, CCPSr. Comp Professional
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Setting up labor markets for compensation planning
and strategy
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Agenda1. Basics2. Science3. Art4. Execution5. Q&A
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The Basics
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What is a labor market?
A set of parameters that define where you compete for talent.
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Your labor market probably doesn’t look just like your organization.
And you may be looking in different Labor Markets for different roles.
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40 Million Salary Profiles250 Compensable Factors
10 Org types 350 Industries 14,000 Positions
The World’s Largest Salary Database
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Compensation: Both Art & Science
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The Science
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Who do you compete with for talent?
Think about: Where do your employees come from?
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Different Locations
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DifferentOrganization Types
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Different Industries
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DifferentOrganization Sizes
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Other Factors
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The Art
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Your overall philosophy on compensation
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How competitive do you want to be? Which roles are crucial
to your organization’s success?
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The outlook for growth over the next year and beyond
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Your company's ability to attract and retain talent
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The Execution
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Tips & Best Practices• Set no more than 2-3 labor markets per location
(otherwise, there can be analysis paralysis)
• Paying well doesn’t mean paying more everywhere. Pay more where you need to, budget where you can
• Different roles are differently valuable to your org. Don’t set the value of the incumbent, think about the value of the role
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Tips & Best Practices•Who are the market movers in your area? Who is
setting the trends?
• It’s okay if you can’t pay what the market mover is paying, but realize what that means to your organization
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Q & A(we’ll email this out)