Aging Salary Survey Data is a required process for any Compensation Professional dealing with more than one Salary Survey Source for a Benchmark Job. Normally, at least three (3) Salary Surveys from different Survey Publishers is a minimum requirement. All Salary Surveys have some sampling error - which is normally in the 8 to 12 percent range with a 10% level of confidence (as subject for a later Blog Post).
The process of Aging Salary Survey Data is important to insure that comparisons of internal Salary Structures and Rates are compared with external Market Data at the same point in time. Leading or lagging some or all of External data will cause distortions in any Direct or Total Compensation Market Analysis.
The Salary Survey Aging Rate is the average annual percentage rate at which salaries are expected to move across given time span. The time span will vary for each Salary Survey Source based upon the effective date of the survey and the Age-Survey-Data-To date set.
Modern Salary Survey Processing and Analysis Software with store Aging Rates within a Job Level Table or Job Family Table. The average annual percentage movement of salaries is what is expressed as Aging Rates in the Job Level and Job Family Tables.
The Age Survey Data process calculates Time Correction (Aging) Factors for survey source(s) attached to Survey Job Profile(s) within a range of survey data effective dates.
