|January 19th, 2019|
Survey Methodology – Benchmarking to Report Generation
I. EXECUTIVE RESOURCES’ METHODOLOGY
Our Survey Database
Data extraction is flexible through our Survey Technology Architecture (STA™) to allow tailoring on the basis of participants, as well as, a very low level of detail relative to remuneration data elements. Additionally, a high degree of statistical modeling is available to allow the validation of multiple scenarios and to regress data elements for scope matching.
The basic evaluation elements used for each exercise are generally: education, relationship, guidance (authority), position level, size of risk/scope, discretionary factors. These factors, including competencies have been mapped to other qualitative and quantitative methodologies.
After analyzing each discreet element of a position description against the criteria above, a range of points is assigned to each duty/responsibility/qualification and aggregated in total (a range total to be used to test the best “line of fit”). At the same time each position is qualified as a standard benchmark position or a non-qualified (slotted) position.
Executive Resources’ job evaluation system is designed to provide a medium for companies to compare internal grading and remuneration to external equivalent positions.
Normally, survey respondent organizations have a 90%+ perpetual participation rate. Unless the surveyed position changes materially or a new position is added to the survey, a participant will not be required to complete a position description questionnaire. The aggregate point value of most benchmark positions (unchanged) remain the same, so ease of survey participation is facilitated.
Data is submitted in local currency for all cash elements of remuneration, and ERL utilizes its knowledge of the in-kind benefits valuation to determine the economic value of each provided. Data collection is supported by its representatives and affiliates in over 30 offices worldwide and follow-up research is provided locally for all data elements in question.
International Employee Benefit Survey
Note: In the event that any payment is fully or partially paid as a net amount, the gross equivalent was used to avoid distortion in the totals of the extracted data.
Standard Data Cuts
Median: the value in the array that is at the 50th percentile. Half of the values in the sample fall above this number and half fall below it. When an array contains an even number of values the median is equi-distant between the central values.
Average Salary: a non-weighted average (arithmetic mean) of pay reported by survey respondents. The results are totaled and divided by the number of respondents.
Third Quartile: the value in the array that falls at the third quarter or 75th percentile. Twenty-five percent or one-fourth of the value in the sample is greater in magnitude than the third quartile. The third quartile may be interpolated when no value in the array corresponds to an exact seventy-fifth percentile.
III. EXECUTIVE RESOURCES’ PROCESS TO SATISFY THE CLIENT’S NEEDS
Job Evaluation Rating of the Client’s Positions
Where available criteria relating to all of the following factors are utilized (when available) to rate the client’s positions:
The job evaluation process is used to determine the relative relationship of the client’s positions, and to serve as a reference range of points to be used to access the “line of best fit” for job matches in the selected organizations.
Validation of Benchmark Equivalents (Matching)
The data abstract will be evaluated manually to determine the highest probability of match at the micro and macro level of point ranges. A range of points will be used to ensure that all probable matches or near matches were considered.
A second abstract will be produced to examine job families within the point ranges of best fit to correlate the quantitative methodology in the database to the occupational streams provided by the client. This abstract will be analyzed manually to ensure that we select the appropriate level within each functional job family for the survey sample.
Current Local Market Survey Data Extraction
The data previously collected in our most recent survey cycle will be collated and placed in a format consistent with the client’s file structure (or by job code, if High or Bio-tech). The positions, which were matched to the generic positions, will be flagged so that they would be a part of any data extraction made. Several data cuts of the extracted data will be made separately and with the selected sample extraction group. This aggregate extraction will be passed through ERL’s statistical package calculations to ensure quality of data matches and samples in preparation for final calculations and analysis in the process.
Data Extraction and Filter Analysis Technology
Survey data collected or manipulated will be filtered and transferred into several of the many statistical programs, which we use, such as the Statistical Analysis System (SAS), Engle Curve, Hedonic Curve, etc. A data set was derived and thoroughly analyzed for relevant statistical patterns (i.e., correlation, negative-correlation, clustering, standard deviation, z-scores, and x-scores, etc.).
This process will be continued until we thoroughly analyzed the data to our satisfaction. The discreet trends and patterns we will learn from the data assisting us to develop recommendations to satisfy this tender and bringing forward broader findings, as may be required.
Calculation of Data Array/Test Data Set
For Not-for-profit organizations all of the data elements will be aggregated on the basis of taxable, non-taxable, or partially taxable within limits. The data will be statistically analyzed and arrayed on the basis of the standard data cuts. Each data point within the array by category will be applied to the tax model on the single employee withholding basis (taxable/non-taxable). The net value of each category will be created in the same relationship to the gross array discounted for tax advantageous pay elements, if any.
As a validation, each aggregate of the “gross integrated” category will be manually exposed to standard tax tables for each country at the single withholding rate. These calculated net amounts are then compared to the output of our tax model, and analyzed if a variance results.
Final Data Array
For Public Sector (Not-for-profits) after validation of the netting down exercise a final data array will be created. The resultant calculation by position by pay expressed, as net will be shown on the data sheets in provided. It is against these values, either in whole or in part (by element) that this sector’s net total remuneration will be compared.
Fees (without volume discounts)