Average Salary Metric
From OrgChart.net
An Average Salary metric displays the average salaries for separate departments or job types within an organization in order provide meaningful comparisons. Average Salary metrics make it easier to compare functions or employees across the organizations and recommend changes if necessary. For example, average salary can provide proof that, for example, a company's accountants on the east coast are earning more than its accountants on the west coast.
An Average Salary metric is also a stepping stone to more sophisticated salary analysis, such as statistical analysis of salary history, their range and standard deviation, which are extremely useful for larger companies. When calculating average salary, executive management might take the employee's job type and compensation range into consideration. When looking at job type, such as full-time, part-time or a contractor position, HR or executive management could compare people from different business units or locations.
Another way to analyze salaries is by examining the salary range within the organization. If the company is operating at a small range, this would imply that employees with a similar skill set are earning similar wages. At a larger organization employees with the same type might be under- or over-paid compared to their peers. By evaluating average salary, organizations of any size can identify these anomalies and manage or fix them.
See Also
- Workforce Analytics
- Headcount
- Gender Ratio
- Ethnic Diversity Ratio
- Age Ratio
- Job Type Census
- Employee Benefit Participation
- Open Requisitions
- Performance Metrics
- Salary Roll-Up Metric
- Tenure Metrics
- Turnover Ratio
