Overview of the Analytics LaunchpadThe Analytics Launchpad can be used to create sharable views and charts that will help you and your Executive Team make informed business decisions regarding compensation.

From your Dashboard, click on the Strategy & Analytics tab in the dark blue navigation bar and select “Analytics Launchpad.”

Table of ContentsClick below to shortcut to the area you would like to review.

COMPARISON (+) REPORTSEmployees to Market | Employees to Ranges | Ranges to Market

EMPLOYEE PAY REPORTSFlight Risk Report | Overpaid Low Performers | Red Circled Employees | Green Circled Employees | Disparate Pay Range Report

PROJECT COMPARISON & OUTLIER REPORTSMarket Outliers (High End) | Market Outliers (Low End)

LABOR MARKET ANALYSISMarket Differential Analysis Report (MDA)

MARKET TRENDS Hot and Cold Jobs

EXECUTIVE SUMMARY

The Analytics Launchpad

COMPARISON (+) REPORTSThe Analytics LaunchpadThe Comparison Reports are located in the top section of the Analytics Launchpad. The reports

are a summarized view of how your employees compare to the market (Employees to Market), how they compare to your pay structure (Employees to Ranges), and how that pay structure compares to the market (Ranges to Market).

Click the “View Report” button in the section you would like to review. You may select different groupings in each report or you can select pre-sorted views by clicking on the corresponding links below the box.

Employee Pay to Market Pay: Displays how you are currently paying your workforce compared to market.

The Analytics Launchpad• Market Ratio displays how closely you are paying to your target percentile. A ratio of 1.00 means, on average, you

are paying at your target. Any ratios highlighted in red indicate a group where you are paying either 20% above or below your specified target.

• EE Base Market-Ratio Distribution displays the distribution of employee pay by market-ratio. Employees that have a market-ratio less than .8 are considered to be paid below market minimum (green bar); those with a market-ratio greater than 1.2 are considered to be paid above market maximum (orange bar); and those with a market-ratio of between .8 and 1.2 are considered to be paid at market (purple bars). Hover over the bar graph to see exactly how many employees are in each market-ratio grouping.

• Base Underpayment is the amount you’re paying that is more than 20% below where you’re targeting to pay.

• Base Overpayment is the amount you’re paying that is more than 20% above where you’re targeting to pay.

• Grouped By: You can group the results by characteristics of your employees or their jobs – including department, performance rating, custom employee groupings, labor market, and more. Use the drop-down menus at the top of the page to change your grouping or add a new grouping column.

• The default Table View displays Base Pay. You can also view your total cash compensation (TCC) figures by clicking on the Switch to TCC hotlink on the top left of the grid.

Employee Pay to Ranges: Displays how you are currently paying your workforce compared to your pay structure.

The Analytics Launchpad• Compa-Ratio displays how closely you are paying to the midpoint of your pay range. A ratio of 1.00 means, on average, you

are paying employees in that group at the middle point of their range. Any ratios highlighted in red indicate a group where you average paying 20% above or below your midpoints.

• Range Penetration displays how far employees in that group are paid through their range.

• EE Pay Distribution is a bar graph indicating the distribution of employees in the group across their range. Hover over the bar graph to see exactly how many employees are in each segment of the range (below, bottom third, middle third, top third, and/or above). Green = Below Range, Blue = In Range, and Red = Above Range.

• The Underpayment column calculates the cost to bring all employees up the range minimum for their job and the Overpayment column calculates the amount by which you are paying employees above the range maximum (helpful for budgeting).

IMPORTANT REMINDER!Use the drop-down menus at

the top of the page to change your grouping or add

a new grouping column.

Ranges to Market Pay: Displays how your pay structure aligns with the market data.

The Analytics Launchpad• Average Midpoint to Target Delta $ displays the dollar difference between where you are targeting to pay in the

market and the midpoint of your pay range.

• Average Midpoint to Target Delta % displays the percentage difference between where you are targeting to pay in the market and the midpoint of your pay range. Any deltas highlighted in red indicate that your range midpoint is either 10% above or below your target market percentile.

• Example: You target the 50th percentile of the market. In Grade 4 there are four jobs. The 50th percentile of the market, averaged across those four jobs, is $63,608. The midpoint of your range for Grade 04 is $60,800, so your midpoint to target delta would be about -4%.

• Range Distribution Midpoint to Target Delta % displays the distribution of jobs tied to ranges based on the midpoint to target deltas. If your range midpoint is more than 10% below your target percentile, you will see a green bar. If your midpoint is more than 10% above your target percentile, you will see an orange bar. Jobs with a midpoint to target delta between 10% and -10% are represented by purple bars and considered as ranges that meet the target market. Hover over the bar graph to see how many ranges are in each grouping.

• Example: You target the 50th percentile of the market. In Grade 1 there are five ranges representing three jobs in two Labor Markets. Two of the range midpoints are more than 10% below the 50th percentile of the market, two of the range midpoints are within +/- 10% of the 50th percentile, and one range midpoint is more than 10% above the 50th percentile.

Employee Pay ReportsThe Analytics LaunchpadThe Employee Pay Reports are located below the Comparison Report boxes on the Analytics Launchpad.

Use these reports to identify specific subsets of your organization that may not be aligned with your compensation strategy. Click on the report name (in blue) to see report details.

Flight Risk ReportEmployees are considered "Flight Risks" if they are underpaid and have high performance ratings. The Flight Risk Report will show you employees paid below the 50th percentile of the market who are exceeding a specified performance rating. You can specify the minimum performance rating you wish to evaluate using the drop-down menu above the grid.

Note: This report requires performance ratings. If you do not have performance ratings in your account, but would like to add them, please contact your Account Manager.

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Overpaid Low Performers Employees on this report have low performance ratings but are paid high in the market. The Overpaid Low Performers Report will show employees paid above the 50th percentile of the market who are also below a specified performance rating. You can specify the maximum performance rating you wish to evaluate using the drop-down menu above the grid.

Note: This report requires performance ratings. If you do not have performance ratings in your account, but would like to add them, please contact your Account Manager.

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Overpaid Employees (Red Circled)“Red Circled” employees are employees whose base salary is above the maximum of their pay range. The annualized base pay for these employees will automatically be circled in red by the system, as shown below.

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Underpaid Employees (Green Circled)“Green Circled” employees are employees whose base salary is below the minimum of their pay range. The annualized base pay for these employees will automatically be circled in green by the system, as shown below.

IMPORTANT REMINDER!These reports compare employee base salaries to your pay structure,

not the market data.

Disparate Pay Range ReportThis report will help you identify which jobs have the widest pay differences among incumbents. The report analyzes how employees in your organization are paid with respect to their peers in the same job). Any jobs with multiple incumbents will show what the pay spread is among those employees (both the dollar spread and the percentage spread).

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SUGGESTION:World at Work best practice for internal pay

spreads are as follows:

Service/Production/Maintenance = 20-30% spreadClerical/Technical/Administrative = 30-40% spread

Professional & Supervisory = 40-50% spreadManagement & Executives = 50% (+)

IMPORTANT REMINDER!Use the drop-down menus

above the grid to change your grouping or add a new

grouping column.

Project Comparison & Outlier ReportsThe Analytics LaunchpadThe Project Comparison can be used for evaluating the impact of hypothetical changes to employee base

pay or to your compensation structure. The Outlier Reports will help you identify employees who are paid very high or very low compared to the market. Click on the report name (in blue) to see report details.

Project ComparisonsThese reports allow you to analyze the impact of hypothetical changes to employee base pay or to your pay structure. To use this feature, you will need to create multiple project folders and analyze the impact of your proposed changes across different projects.

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Sample Use of Ranges by Project: If you want to see the impact of a 2% shift in your pay ranges, you can create a copy of your Active Workforce and in the new project, update all your ranges by 2%. Use Ranges by Project to analyze the impact of the change on your range midpoints.

Sample Use of Employees by Project: If you want to see the impact of a 3% across-the-board increase to employee base pay, you can create a copy of your Active Workforce and in the new project, update all employees’ base salaries by 3%. Use Employees by Project to analyze the impact to your Total Base before instituting the change.

Market Outliers These reports will help you identify employees who are paid at the high end (above the 90th percentile) and at the low end of the market (below the 10th percentile). Review how these reports have been defined – both the Job Description Details and the Labor Market Details – and make any necessary adjustments. You may also consider adjusting your Target Market Percentile.

The Market Percentile of Annualized Base indicates where your employee’s pay is falling compared to the market for their job in their location. Employees whose pay is falling above market will be marked with >90th percentile. Employees whose pay is falling below market will be marked with <10th percentile.

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Market Outliers (High End)

Market Outliers, continued…The Analytics Launchpad

Market Outliers (Low End)

Labor Market AnalysisThe Analytics LaunchpadThe Labor Market Analysis is located below the Employee Pay Reports on the Analytics Launchpad

(toward the bottom of the page). Use this report to compare pay for your jobs between multiple Labor Markets. Click on the report name (in blue) to see report details.

Market Differential Analysis (MDA)PayScale’s Market Differential Analysis is geo-differentials on steroids. It’s much more than the typical one-size-fits-all solution. MDA shows how pay varies for a set of selected jobs across selected markets.

Pay does not vary uniformly for all jobs and is not simply a matter of cost of living. Local labor supply and demand can have a significant effect on wages for specific jobs or industries. PayScale’s MDA allows you to evaluate wage variance for your jobs in your industry. It enables you to design a compensation strategy that is fair and competitive and based on your specific workforce.

The Analytics Launchpad

IMPORTANT REMINDER!In the “Help” section you will find additional guidance on using the

advanced features of MDA, including National Offsets,

Weightings, and Groupings.

Market TrendsThe Analytics LaunchpadThe Market Trends section is located below the Employee Pay Reports on the Analytics Launchpad

(toward the bottom of the page). Use the Hot and Cold Jobs report to track jobs where compensation is moving faster or slower than the national market to avoid risk of underpaying employees or overspending. Click on the report name (in blue) to see report details.

Hot and Cold JobsThe report helps to track jobs where compensation is moving faster or slower than the national market. This unique trend analysis is not looking at aggregate trends, but rather is a precise look back at the previous 12 months, in quarterly intervals, for particular job profiles and their compensable factors.

The Market Trends grid shows the market change for your jobs at the 50th percentile. The quarterly intervals are measured from the date you last ran the report (Report Run Date).

Hot Jobs – Compensation for these jobs is increasing faster than national market averages. Hot jobs should be monitored frequently to avoid the risk of underpaying those employees and possibly losing them to competitors who are keeping up with the market.

Cold Jobs – Compensation for these jobs is increasing slower than the national market. Cold jobs can highlight areas where there is a risk of overspending on compensation.

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HOT JOB:Any job highlighted in light to dark red has seen pay increase 1% or more in the market.COLD JOB:Any job highlighted in light to dark blue has seen pay decrease 1% or more in the market.

Hot and Cold Jobs, continued…To view a specific trend report for a job, click on “view” under the Report Details column. In the Detailed Market Data Report, select “Market Trends” under Report Details (blue box, bottom left). The Analytics Launchpad

Executive SummaryThe Analytics LaunchpadThe Executive Summary is available at the very bottom of the Analytics Launchpad (below the Labor

Market Analysis and Market Trends). Click on the report name (in blue) to see report details.

Executive SummaryCreate a document that summarizes all data about your workforce and is designed for the Executives in your company. The report synthesizes the information in the Analytics Launchpad and also provides some key insights into the organization and your compensation philosophy.

You can choose to include all sections of the report, or only those you wish to present to your Executive Team. You can also group your report for more specific analytics on Departments, Divisions, or Labor Markets.

The Analytics Launchpad

To see a sample Executive Summary Report,

CLICK HERE!

The Analytics Launchpad

In Conclusion…

PayScale Manages Compensation ComplexityBest-in-class compensation management is a complex — and ongoing — process that requires a solidfoundational compensation strategy coupled with smart execution. Best-in-class compensationstructures don't just happen on their own. As quickly as the market and your strategy change, so tooshould your compensation approach.

PayScale Insight helps you manage your compensation strategy. Review your own compensationstrategy and practices report at least annually, if not more frequently.

We support thousands of customers with accurate market data and compensation planning toolsevery day. Many of our customers request additional support. PayScale's Insight Expert service helpsorganizations set strategy, establish structure, and roll out changes to their workforces.

We don't believe in cookie-cutter approaches. We think all organizations need a compensation planthat supports their unique mission and goals. We would be glad to talk with you more about how wecan help you move forward and build best-in-class pay practices.

To learn more about our consulting services please speak with your Account Manager.