In: Advanced Math
Did any of your previous assignments involve math calculations for premium and or salary analysis and adjustments? Please provide detailed example(s).
Determining Salary Range & Calculate Range Spread:-
The market survey data is to determine the salary range for a position,by using the 10th, 50th, and 90th percentiles as your minimum, mid-point, and maximum for the range. One of the problems with either of those options, though, is that those points tend to fluctuate with the survey data so your range spread varies from position to position.
Instead, you may want to calculate a consistent range spread based on the mid-point of the salary data. We have to decide which mid-point to use—the mean or the 50th percentile. Either way, there is a simple method for determining the min, mid, and max of a salary range when only the mid-point of the survey data is known.
Let us consider the range spread to be 25%, 50%, 75%, or even more It’s important to be consistent that range spread is calculated across job types.
For example, A non-exempt jobs could have a range spread of 25% or 30% and exempt jobs could have a range spread of 40% or 50%. The sample of one way to designate range spread for all jobs within an organization:
The key is to pick one range spread rate for each job type in your organization, document it, and be consistent in how it is applied when setting the salary range for each of the jobs in a given job type
Let’s use 50% as our range spread. In this case, the midpoint of our rage is $135,500. To find the minimum, divide the market rate by 1.00 + ½ of the range spread.
To find the maximum, multiply the minimum times 1 plus the range spread.
This creates a salary range that has a minimum of $108,000, a mid-point of $135,500, and a maximum of $162,000.
The simple formula can be used to establish a salary range for any job based on the mid-point of available salary market data.