Many employers look first to the external market to establish and benchmark their own compensation levels. Even employers that use a formal job content evaluation approach examine external market data as a part of the process, although the information collected is supplemental, rather than a primary focus.
An organization’s internal job worth hierarchy is influenced by the value of jobs as established by the external market. Regardless of the job evaluation approach taken, the successful use of market data relies upon the techniques used to collect and analyze the data. Is the organization capable of collecting data on most of its jobs? Are the data sources reliable? Are the sources representative of the relevant labor markets? What is the best way to analyze and use the data collected?
You’ll learn:
- Learn about market pricing and the terminology associated with market pricing.
- Explore the advantages and disadvantages of market-based job evaluation and pay structure design.
- Identify and describe the steps involved in market-based pay structure design.
Originally recorded on May 29, 2019.
Andy Welt is Senior Vice President and Practice Leader for Fidelity’s Workplace Consulting Rewards practice. A WorldatWork faculty member since 2017, Andy brings three decades of experience in both corporate and consulting roles in compensation strategy, incentive design, and performance management.
He has held compensation leadership roles at Hasbro, CVS, Biogen, Haemonetics, and Achillion Pharmaceuticals, where he was responsible for shaping enterprise-wide rewards programs. On the consulting side, Andy has served as National Compensation Practice Leader at Marsh & McLennan Agency and worked as a senior consultant with Aon Hewitt and Watson Wyatt (now Willis Towers Watson).
Andy’s areas of expertise include broad-based compensation design, equity and short-term incentive planning, recognition programs, and aligning rewards with organizational performance strategies. In addition to his work with Fidelity, he serves as an adjunct professor at San Diego State University, teaching HR and compensation topics to graduate students.
Andy holds a BA in Political Science and History from Hartwick College and an MS in Labor and Industrial Relations from the University of Rhode Island. He is a WorldatWork Certified Compensation Professional (CCP®).
