Statistics for Compensation (PDF)

An insightful, hands-on focus on the statistical methods used by
compensation and human resources professionals in their everyday
work



Across various industries, compensation professionals work to
organize and analyze aspects of employment that deal with elements
of pay, such as deciding base salary, bonus, and commission
provided by an employer to its employees for work performed.
Acknowledging the numerous quantitative analyses of data that are a
part of this everyday work, Statistics for Compensation provides a
comprehensive guide to the key statistical tools and techniques
needed to perform those analyses and to help organizations make
fully informed compensation decisions.

This self-contained book is the first of its kind to explore the
use of various quantitative methods--from basic notions about
percents to multiple linear regression--that are used in the
management, design, and implementation of powerful compensation
strategies. Drawing upon his extensive experience as a consultant,
practitioner, and teacher of both statistics and compensation, the
author focuses on the usefulness of the techniques and their
immediate application to everyday compensation work, thoroughly
explaining major areas such as:

* Frequency distributions and histograms

* Measures of location and variability

* Model building

* Linear models

* Exponential curve models

* Maturity curve models

* Power models

* Market models and salary survey analysis

* Linear and exponential integrated market models

* Job pricing market models

Throughout the book, rigorous definitions and step-by-step
procedures clearly explain and demonstrate how to apply the
presented statistical techniques. Each chapter concludes with a set
of exercises, and various case studies showcase the topic's
real-world relevance. The book also features an extensive glossary
of key statistical terms and an appendix with technical details.
Data for the examples and practice problems are available in the
book and on a related FTP site.

Statistics for Compensation is an excellent reference for
compensation professionals, human resources professionals, and
other practitioners responsible for any aspect of base pay,
incentive pay, sales compensation, and executive compensation in
their organizations. It can also serve as a supplement for
compensation courses at the upper-undergraduate and graduate
levels.