Compensation: Market Pricing
Market pricing involves looking at the relevant labor market to ascertain what the “going rate” or “market rate” is for a particular position. Market pricing can yield valuable pay data about “benchmark” jobs—jobs for which close “matches” can be identified in the relevant labor market.
Data collected through market pricing can be used in a number of ways. For example, market data can be obtained about a number of benchmark positions as part of a larger initiative. Market data can also help in the building of a job worth hierarchy, around which other positions can be placed using a whole job slotting technique. Market data can also be used to obtain information for one particular job, in combination with other job ...
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