March 26, 2019
Can the “Median Employee” Become a Useful Measure?
– Liz Dunshee
We can grumble all we want about pay ratio – but the requirement probably isn’t going anywhere. And this blog from Margaret O’Hanlon suggests that companies may even be able to benefit from the data they’ve gathered. Here’s an excerpt:
Who are your median employees, and how have your pay policies affected them? Step back and consider whether the picture you’ve painted is optimal, given current business operations and results. Consider other ways the “median employee” can be used as an analytic for your company in the coming years.
What about the future? In three years, based on your projected talent strategy, what title should qualify as median employee? Is it the same job title as today? How will your pay strategies affect this evolution?
I’m guessing that this type of analysis would offer insights that would be valuable for both strategy and communications. Strategy, in that there are bound to be insights that lead to practical adjustments. Communications, in that there are bound to be details that can be helpful in explaining pay and business priorities, and how they have evolved/are evolving.