Business cases - HRP1066
All of the business cases indicated below utilize the Salary Comparison Report and Salary Comparison Detail reports.
How a Comparison Salary Report can is can be useful?
A salary comparison report is a method of finding out what other organizations are paying for specific jobs or job classes within Michigan State University. Both large and small organizations want to be able to determine prevailing pay rates and benefits. This report will not only determine the low, high and average salaries for a given classification, but also provide a sense of what other organizations are paying. A salary comparison report can be a useful tool in implementing employee compensation strategies.
How can I utilize the Salary Comparison Report for the above processes?
- New Positions – Determining the starting pay of a classification. The report can be filtered to view organizations that are similar in size to determine the salary for a new position.
- Reclassification – Reclassifying an individual into a new classification and determining the range of salaries in the new classification. The report is also helpful in reviewing the employees who have been at Michigan State University by reviewing the average amount of years in the new classification and the years in service held by the individuals already in the classification.
- Equity – Reviewing salaries to support equity by comparing salaries within your organization or with other similar organizations.
What are some things I need to keep in mind when I review my Salary Comparison Report?
- Review job descriptions or position profiles - It is important to look at job duties and responsibilities not just the classification when deciding if information is comparable. To be comparable the jobs should have a similar level of responsibility and range of duties.
- Operating budgets of respondent organizations - Comparable salaries come from organizations of a comparable size. Size is usually estimated by using the operating budget or looking at the number of paid full-time staff.
- Types and descriptions of respondent organizations - Compare salaries with organizations that have functions or offer services comparable to your organization.
- Year of data collection and the date of the report - Labor market forces can result in significant changes in salaries in a short period of time. More recent data will be more useful in establishing current salaries.
