WageAccess®Compensation and Benefits Survey
The WageAccess® Compensation and Benefits Survey is designed to be easy to use and provide
the most accurate and valid results possible. The survey methodology details
the special attention given to how survey data are collected and audited, and
how the survey results are calculated, analyzed and presented.
Collection of Data
Survey data are collected from participants annually and may be submitted
to the survey via the Internet website at any time during the calendar year.
Participants are required to report accurate and actual rates of pay to the
survey. A key factor for ensuring the collection of valid survey data is the
requirement that participants calculate and submit the actual average
rates of pay for employees in a position as well as the highest and lowest
rate of pay. Estimates are not acceptable.
At the end of each calendar quarter (March 31, June 30, September 30 and
December 31), survey data that has been collected during that quarter is compiled
for reporting purposes. It takes approximately three months to audit, validate
and calculate the survey data. The results for that collection period are
available on the website in the first month of the calendar quarter (January, April, July and October)
following the audit process. However, once a participant has signed up
for membership and submitted their survey data, they will have immediate access
to survey results collected in the previous quarterly collection period.
Quality Match Rating
A rating scale is used to identify job matching errors and reveal discrepancies
in position responsibilities and functions. Participants are asked to rate
by percentage of accuracy how their position matches the survey job description
(75%, 85%, 95% and 100% accuracy). Participants should only report data to
a particular position in the survey if they feel their position matches the
survey job description with an accuracy of least 75%.
Auditing
Since data are submitted to the survey directly, it is assumed that the participants
have completed the survey in an accurate and thorough manner. However, occasionally
errors in input may occur. Once survey data has been collected, it is reviewed
by the Synergy staff and a thorough statistical analysis and auditing process
is performed to identify any discrepancies in the data. Individual participants
may also be contacted to verify the accuracy of this data.
Aging the Data
New survey data are compiled quarterly and combined with previously collected
data to calculate the results for each quarter of the year. An aging factor
is applied to all previously collected data for the year to adjust for the
movement of salaries through the year.
The aging factor is proprietary to Synergy. It is derived from a combination
of statistical metrics, including the Consumer Price Index (CPI) as reported
by the Bureau of Labor Statistics (BLS), BLS-reported annual changes in national
salary data, actual reported survey salary data trends and other economic
parameters. For example, assume that the aging factor is calculated at 4%
for the current year. All data previously collected during the first quarter
of the year would be increased by 1% before it is combined with the data collected
in the second quarter of the year.
This aging process provides participants with a much more accurate picture
of the market's current level of pay, thus resolving the 'stale' data problem
that occurs with most surveys.
Calculating the Results
WageAccess' state-of-the-art Internet-based reporting feature allows participants
to create custom reports from current and historical survey data. Users may
select and filter data by using any combination for the following factors:
- Geographic Location (Region, State and Metropolitan Area)
- Industry
- Annual Revenue
- Number of Employees
After executing the query, the names and locations of the corresponding companies
are displayed to allow users to validate their selection. If the selection
yields fewer than
companies, for confidentiality and statistical accuracy,
the data will not be made available and the user must broaden the selection.
Based on the user's selections, the following statistical calculations are
available:
Survey Results
The survey results allow participants to view the survey data based on the
selected criteria through a number of commonly used descriptive statistics.
Mean
The mean is the calculated average of pay for a position as reported by the
selected group of companies. This calculation is obtained by dividing the
sum of the average rates of pay for the selected position from each company
by the number of companies. The mean is generally the preferred measure of
central tendency in that each company is treated with equal weight and it
reflects the value of each average rate of pay in the sample.
Median
The median is the midpoint or center rate in a series of average of rates
of pay as reported by the selected group of companies that have been organized
from lowest to highest rate. The median is also a good representative of central
tendency, however, it is not affected by extremely high and low rates of pay
for a position.
Weighted Average
The weighted average is another type of calculated average of pay for a position
as reported by the selected group of companies. The weighted average is obtained
by first multiplying the number of incumbents in the position by the average
rate of pay at the company and then dividing the sum of that product by the
total number of incumbents at all selected companies. This measure is useful
in that it provides a higher weighting to larger companies employing larger
quantities of employees in a position.
Average Lowest Rate of Pay
The average lowest rate of pay is the calculated average of lowest pay for
a position as reported by the selected group of companies. The calculation
is obtained by dividing the sum of the lowest rates of pay for the selected
position from each company by the number of companies.
Average Highest Rate of Pay
The average highest rate of pay is the calculated average of highest pay
for a position as reported by the selected group of companies. The calculation
is obtained by dividing the sum of the highest rates of pay for the selected
position from each company by the number of companies.
Average Start Rate
The average start rate is the calculated average starting rate of pay for
a position as reported by the selected group of companies. The calculation
is obtained by dividing the sum of the highest rates of pay for the selected
position from each company by the number of companies.
Average Rate Range Min
The average rate range minimum is the calculated average minimum rate of
pay in a structured pay grade system for a position as reported by the selected
group of companies. The calculation is obtained by dividing the sum of the
highest rates of pay for the selected position from each company by the number
of companies.
Average Rate Range Max
The average rate range maximum is the calculated average maximum rate of
pay in a structured pay grade system for a position as reported by the selected
group of companies. The calculation is obtained by dividing the sum of the
highest rates of pay for the selected position from each company by the number
of companies.
Job Data Parameters
Job data parameters are reported as the percentage of the selected companies
whose employees in this position normally match the following parameters:
- Pay Type (Hourly or Salary)
- FLSA Status (Exempt or Nonexempt)
- Eligible for Bonus
- Average Bonus Percentage Received (of those eligible for bonus)
- Receives Commission
- Commission Rate Received
- Receives Tips
- Average Tip Rate Per Hour Received (of those who receive tips)
- Supervisory Position
- Union Position
Quartile Analysis
The quartile analysis allows users to make a direct comparison of their own
data to the survey results, including a detailed report of their company's
percentile ranking in the selected market.
Percentile
Percentile is calculated as follows: in a series of average of rates of pay
that have been organized from lowest to highest rate, a percentage of the
average rates of pay will fall below this number and the remaining percentage
will fall above this number. Based on the selection criteria, the quartile
analysis will show average rates of pay for the position at the 10th, 25th,
50th, 75th and 90th percentiles.
Market Analysis
The market analysis section allows users to compare their own methods of compensating
employees through a formal pay grade system to the methods of other survey
participants in the selected group of companies.
Compa-ratio
The compa-ratio is a tool that is used to compare average rates of pay with
the midpoint of a rate range. A score of 1.0 indicates that the average rate
of pay for this position is the same as the midpoint of the rate range. A
score that is greater than 1.0 indicates the average rate of pay exceeds the
midpoint of the rate range. Likewise, a score of less than 1.0 indicates the
average rate of pay is lower than the midpoint of the rate range.
Rate Range Comparison
These results offer a direct comparison of the participant's own pay grade
Start Rates, Minimum, Midpoint and Maximum rates to the pay grade levels reported
in the survey results.
WageAccess® is a service of Synergy Management Solutions, Incorporated