Compensation Comparisons

· What do they earn at comparable employers?

· How big were the most recent settlements?

Wages are the largest and most important element of compensation to compare.  Both the absolute level and the pace of recent changes need to be considered for a complete comparison.

· Our comparator has a higher longevity benefit but lower base wages.  Who is paid more?

When making comparisons it is vitally important to compare all aspects of compensation over a consistent set of comparators.

I have a model for comparisons that incorporates all elements of cash compensation and reduces it to one easy to interpret number for each comparator.

· The union has proposed a benefit because they claim it is common in Massachusetts.  Is it?

“Cherry-picked” comparisons are where only favorable information is presented, ignoring less favorable context.  It is one thing to learn that 3 out of 5 comparators have some particular benefit, but it means something completely different if those same 3 comparators have lower base wages.

It is vitally important to obtain as much information as possible about any comparators offered by the other side.  I achieve the most accurate information by using actual contracts whenever possible.  This intimate level of detail for all comparators allows for fast verification of actual benefits.

 

The most important information in negotiations is comparisons with similarly situated employees.  To be effective, comparisons need to use relevant employers, cover all major elements of compensation, and be presented in a clear and consistent manner.

I provide a complete compensation analysis, covering the comparators, each element of compensation, and a clear summary.

· What is a “relevant comparator”?

Sometimes the biggest issue with making comparisons is identifying the appropriate employers to include.  Unions and management often differ on which comparators to use, justifying their choices using a variety of factors.

The most persuasive comparisons begin with an explanation of why these particular comparators are used, and occasionally, why those comparators should not be used.  Geographic location is important, but so is size and structure of the employer, source of revenue, organization of the industry, and ultimately, its customer base.