PayScale collects compensation data directly from employees to determine appropriate market prices for jobs. It collects detailed data on job skills, responsibilities, and other compensable factors. PayScale uses this information to match employees and jobs, rather than grouping them into broad categories. This allows it to find closer matches than traditional surveys and better establish the market price for a given unique job. PayScale reports include information on the matched market data and how different compensable factors influence compensation.

1. Using PayScale to Get the Compensation Data You Need Dr. Al Lee Director of Quantitative Analysis Emily Chereck Senior Product Specialist PayScale, Inc.

2. Agenda Overview – Goals of job market pricing How PayScale collects compensation data How to use Insight to price your jobs How PayScale matches the right market data to your jobs Questions

3. Overview For most jobs, the “market” determines the wage Your job’s “market price” is simply what similar employees doing similar jobs are paid If your company pays below market, employees may leave If your company pays above market, your company may not be profitable Critical to know a job’s market price when setting pay PayScale Insight is a market pricing tool

4. How PayScale Works PayScale follows the World at Work process of Job analysis Job evaluation Market pricing However, we collect and process data differently from traditional compensation surveys We collect data on all jobs, not just “benchmark” jobs We collect detailed data on compensable factors We collect data from employees directly

6. Consumer Survey PayScale has constructed a job analysis survey for employees that: Puts employees in a neutral frame of mind Asks only questions employees can answer Asks only about concrete compensable factors Never asks employees to “level” themselves Is fully automated

7. Automated Data Collection Profiles accurately reflect jobs and compensation Consistent with other compensation resources: Watson Wyatt, Mercer, BLS We collect data for locations, company types, and jobs that are too expensive for traditional surveys Our data reflects all salaries in a market, not just those of companies who participate in surveys

9. 300,000 new profiles/month

10. Rigorous statistical analysis, including internal and external validation checks

11. Updated every 24hrs

13. Skills Experience Employees Are Varied

14. Your Employee is Unique Skills Web App. Developer, C#, 9 Y.E., CS Degree… Experience

15. Traditional Surveys Put Employees in "Buckets” Skills App. Developer I App. Developer II App. Developer III Web Developer I Web Developer II Web Developer III Experience

16. Which “Bucket” For Red? Skills App. Developer I App. Developer II App. Developer III Web Developer I Web Developer II Web Developer III Experience

17. PayScale’s Approach: Build a “Bucket” Around “Red” App. Developer I App. Developer II App. Developer III Web Developer I Web Developer II Web Developer III Skills C# Web App. Developer, 9 Y.E., CS Degree… Experience

18. PayScale Matches Closer Than Fixed Bucket Matches App. Developer I App. Developer II App. Developer III Web Developer I Web Developer II Web Developer III Skills C# Web App. Developer, 9 Y.E., CS Degree… Experience

19. Automatic Bucket Large “Enough” Too Few Not “Typical” App. Developer I App. Developer II App. Developer III Two Jobs Two Levels Web Developer II Web Developer I Web Developer III Skills Experience

20. Actual “Bucket” Has Complex Shape App. Developer I App. Developer II App. Developer III Web Developer I Web Developer II Web Developer III Skills C# Web App. Developer, 9 Y.E., CS Degree… Experience

21. PayScale Report Details: Transparency Compensation information : Importance ordered list of compensable factors Compensation Influencers : How much we think each factor matters Data Summary : Characteristics of “similar” profiles Anonymous Profiles : Sample of profiles we match to within your search

22. PayScale is a market leader in global online compensation data. With the world's largest database of individual employee compensation profiles, PayScale provides an immediate and precise snapshot of the job market. Our patent-pending, real-time profiling system indexes custom employee attributes (such as industry-specific certifications) and specific job titles for every industry. Our secure, on-demand business solutions, PayScale MarketRate and PayScale Insight, provide employers with accurate, reliable compensation detail never before available. 7,000 Positions. 50 Major Industries. 11 Countries