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QUESTION:  What is statistical analysis and how is it applied to salary and wage data?

 

Statistical analysis involves a study of how differences in salaries are explained by geographic areas, industry, years of experience and size of the company.

 

ERI salary and wage findings are presented in terms of weighted average salary paid (the total payroll of all the employees in a job divided by the number of employees).  There are a number of variables involved, including: wage data collection date, the number of employees, the industry, the location, the size of company, etc.

 

ERI relies heavily on statistical analysis, or "weighted average of central probabilities" methodology.  Non-linear, polynomial, and linear statistical analysis is conducted in developing ERI findings.  Our subscribers are provided with convenient and easy-to-use results:  the use of Assessor Series databases involves choosing a position title and viewing the market prices.

 

ERI continues to apply statistical analyses to nationally and regionally reported survey data on a quarterly basis, utilizing a proprietary benchmark modeling technique developed by ERI's research staff. ERI affects no "magic" with our collection of survey data, creation of a master database and statistical analyses.  Subscribers might also produce these results, should they wish to expend the time and expense of collecting the thousands of national and local area surveys now conducted worldwide by consulting, trade, association, private and government entities.  Job matches are confirmed by comparison of the position descriptions compiled for each of the positions found in the Salary Assessor databases or the Executive Compensation Assessor databases.