Our pay philosophy is to align with market median for all roles. Do other companies adopt a different approach? i.e. do you have a premium for specialist roles and / or use the 75th percentile instead for specialist roles?
We utilise market data overlay, market, internal data and recruitment feedback. We then create a median and utilise a 80%/120% spread (Bottom and Top of the range) as a guidance to the business.
Hi Keziah, I recommend aiming to pay a market rate range. For example if your data says £62K maybe look at £55-70K etc. This is because it's very difficult to land on a specific number. Anymore than you would if you're buying a house or a pair of jeans!
Additionally, if everyone is paying around the median then what makes you stand out from the pack? Maybe look at paying 10% over market to ensure you're able to recruit and retain who you need without messing about or appearing to be just like everyone else.
Hi Keziah, speaking on behalf of various experiences; yes. I have previously seen the 75th used commonly for hot jobs (especially Technology) but only after an evidence-based assessment; long lead times for recruitment, high attrition for like-for-like roles (not promotions), exit interview feedback. this ensures it is not just anecdotal when considering cost impact
We utilise market data overlay, market, internal data and recruitment feedback. We then create a median and utilise a 80%/120% spread (Bottom and Top of the range) as a guidance to the business.
Hi Keziah, I recommend aiming to pay a market rate range. For example if your data says £62K maybe look at £55-70K etc. This is because it's very difficult to land on a specific number. Anymore than you would if you're buying a house or a pair of jeans!
Additionally, if everyone is paying around the median then what makes you stand out from the pack? Maybe look at paying 10% over market to ensure you're able to recruit and retain who you need without messing about or appearing to be just like everyone else.
Hi Keziah, speaking on behalf of various experiences; yes. I have previously seen the 75th used commonly for hot jobs (especially Technology) but only after an evidence-based assessment; long lead times for recruitment, high attrition for like-for-like roles (not promotions), exit interview feedback. this ensures it is not just anecdotal when considering cost impact