← HR Metrics·Workforce Planning
Labor Market Competitiveness
Salary competitiveness vs market median
How it’s computed
internal_median / market_median
What the evidence shows
| Relates to | Effect (r) | N | Grade |
|---|---|---|---|
| Pay satisfaction | 0.23 | 50 | A |
| Job satisfaction | 0.15 | 50 | A |
| Voluntary turnover | -0.09 | 14191 | A |
Run it on your data
This metric is computed in the People Analytics Toolbox on your own numbers. See pricing — posted, no quotes.
sources: toolbox:metrics-catalog · principia:metrics
What the literature says
The measurement literature behind this signal — sourced, so you can defend it.
“You will weight surveys in your industry more heavily if you have established a strategy that defines your competitive labor market as industry-specific.Quality of surveys . The statistical analyses provided—participant base and number of cases per job, among other…”
— Worldatwork Handbook Compensationmatch 62%
“12.1.1 Salary Ranges, Range Spreads, Compa-Ratios, and “ Compe-Ratios”When considering your employee’ s likelihood of leaving the company, you should think about how their compensation compares to what “ the market” would offer them. By “ the market” offer I mean the best offer…”
— Strategic Compensation Talentmatch 56%
“The costs of these products and services include labor, which is never constant. Companies need to closely monitor labor costs to make sure that they neither overpay (leading to a higher cost than necessary in providing a product or service) nor underpay (possibly leading to…”
— Worldatwork Handbook Compensationmatch 55%
Resources: Worldatwork Handbook Compensation · Strategic Compensation Talent