Average Salary Metric

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An Average Salary metric displays the average salary at each department, location or job type within an organization, in order to provide meaningful comparisons. Average Salary metrics are essential when comparing functions of employees across the organizations and can be used to implement changes if necessary. For example, the average salary can provide evidence that employees at one branch of an organization are earning more than at another branch.

An Average Salary metric is a stepping stone to more sophisticated salary analysis, such as statistical analysis of salary history, their range and standard deviation, which can be invaluable information for larger companies. When calculating average salary, executive management may decide to take an employees position and compensation rate into consideration. When looking at specific job types, such as full-time, part-time or a contractor position, HR or executive management may want to compare people from different business units or locations, and Org Charts allows easy arrangement and analysis of Salary data.

Another method of Salary Metric analysis is by analyzing the salary range in an organization. Salary Range can be an important indicator of proper or improper employee compensation; If the company is operating at a small range, this would imply that employees with a similar skill set are earning similar wages. At larger organizations, employees with the same skill set may be under- or over-compensated in comparison to their peers. By evaluating average salary, organizations of any size can illuminate these anomalies and manage or correct them.

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