Job Pricing

The final result of a job matching exercise would be a list of roles in the industry which has a certain level of matching with the roles in the organization. Now an exercise called job pricing is done. In this exercise, the total remuneration for a certain role is found out by benchmarking it with comparator roles which has been obtained as a result of job matching. For this a survey is done in the industry for the comparator roles and then an analysis is done. The analysis is done in such a way that it gives a detailed split of the remuneration.

The statistical analysis would cover the various measures like mean, median, mode, P25, P75, min, max etc. Other parameters like range spread etc are found out. Now this is done for each component of the compensation like base pay, variable pay, benefits, etc in detail. From this benchmark results, the organization fixes a certain remuneration framework for the role.

A deeper analysis of the process of job pricing would show that, it includes the analysis of the detailed split of various components of the compensation. It also analyses the percentage split of various components of compensation in the market. For e.g.

Fixed Pay – 10%
VP – 20%
Benefits -20%
Allowances – 40%
Other – 10%

The whole process ultimately also throws light on the total cost to company.