How to compare average and median salary information

I recently described how to calculate a percentile. Today I will clarify the difference between the average and the median. Technically, the average is the sum of all data points, divided by the number of data points. The median is the 50th percentile, or the value that splits the data points in two equal groups…

Are you benchmarking…or copying ?

I once presented a new annual incentive scheme to the Board of my then-employer. The Board members liked the content of the plan, and one of them asked me, as a favour, to go and present it to the CEO and HR Director of another company that he was Chairman of. So I headed to…

New hires vs employees : 3 salary situations and how to handle them

Imagine the scene : you are sitting at your desk, happily going along your normal HR activities, when an employee (let’s call him John) enters your office and expresses some concern over his compensation. More specifically, he says, he knows that some of his former colleagues at his previous employer, “who were earning the exact…

The best order in which to apply salary increases in any organisation

Salary review time is approaching fast and so today I wanted to write about  the order in which we apply salary increases. Does it matter ? Or is it totally irrelevant to what you are trying to achieve when going through your internal and external equity reviews ? First, let’s have a look at the…

Compensation surveys – the ultimate buyer checklist

Maybe you are expanding into a new country, or you need complementary information on top of the one you already possess in your markets. So you are considering participating to a compensation survey. Beyond the price and reputation of the provider of compensation data, here is a checklist, in no particular order, of what you…