How Salary Market Research Is Conducted

ayshakhatunasha

April 2023

A successful business is an idea and the people who bring it to life. What makes it possible to attract to your team personnel who "decide everything"? In addition to interesting work and comfortable conditions, it is important to offer employees a decent, but not excessive, reward. How to correctly assess the state of affairs on the labor market in your segment? Based on market research data.

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Individual salary studies help attract highly virtual phone number service qualified employees, reduce staff turnover and stimulate the competitiveness of the company as a whole.

The consulting company "Administrative Resource" conducts individual salary studies , and they are most often ordered for:

• attracting and retaining the most valuable specialists in the team;

• calculations of the optimal payroll for a new division or revision of the payroll of an existing one;

• a better understanding of the wage situation in a specific market segment (industry, region, field of activity).

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Market research will be most useful if the client clearly formulates what task the research should solve. What is the goal? To understand the salary level of highly specialized professionals needed for business? To get an idea of ​​how the salary of, for example, accountants with knowledge of English has changed over the past year? Or to find out how companies that are constantly trying to poach the client's employees motivate their employees?

It is important for the company ordering the research to formulate a number of other criteria:

• region - where we want to act, we study it;

• time period - the study is conducted, for example, as of April 2023;

• companies of interest - most often, in order to make a decision, it is necessary to understand how direct competitors behave, and then the industry as a whole;

• positions under study - it’s not the names that are important, but the functionality (they can be called very differently).

Within the company, it is also necessary to collect all the data so that it is easy to compare with the results of the market research. The more specifics, the clearer the picture will be.

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Market research can be industry-wide or for a narrow range of companies, but regardless of the scale, it must be based on high-quality collection of primary information. At Administrative Resource, we pay a lot of attention to the quality of the sample, job matching, using grading and other tools for ranking positions. Much attention is also paid to the methodology of monitoring, ensuring confidentiality and proper use of the data obtained.



How effective can a market analysis be on your own? It is not difficult to find information on how to conduct a salary review on your own. Even a schoolchild can calculate the median or quartile. The problem is not what to do with the numbers, but how to obtain reliable primary information. Unverified or insufficient data will initially put an end to the effectiveness of the study.

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In this case, a lot depends on the company - the contractor: reliability, completeness of presentation, systematicity and structure of data. Our clients receive a statistically reliable and valid report containing the necessary and well-structured information on the level of salaries and other valuable information on the labor market.

We are proud of our regular clients , who order salary research year after year. Our monitoring contributes to the development of these companies, helps them in these difficult times to build the right policy and maintain a highly effective team.