Problem:
Go to www.salary.com and select at least four jobs to analyze. Select at least three cities for each job. You can use the same three cities for all four jobs. Answer the following and show the salary data:
Question 1. Which jobs are paid more or less? Is this what you would have expected? Why/why not? What factors could explain the differences in the salaries?
Question 2. Do the jobs have different bonuses as a percentage of their base salaries? What could explain these differences?
Question 3. Do the data include the value of stock options? What are the implications?
Question 4. Read the job descriptions. Are they accurate descriptions for jobs that you would be applying for? Why/why not? Are there jobs for which you cannot find an appropriate match? Why do you think this is the case?
Question 5. How could you use this information while negotiating your salary in your job after graduation? What data would you provide to support your "asking price"? What factors will influence whether or not you get what you ask for?
Question 6. What is the relevant labor market for these jobs? How big are the differences between salaries in different locations?
Question 7. For each job, compare the median salary to the low and high averages. How much variation exists? What factors might explain this variation in pay rates for the same job?
Question 8. Look for a description of how these salary data are developed. Do you think it provides enough information? Why/why not? Discuss some of the factors that might impair the accuracy of these data. What are the implications of using inaccurate salary data for individuals or companies?
Question 9. With this information available for free, why would you bother with consultant surveys?
Question 10. If you were a manager, how would you justify paying one of your employees either higher or lower than the results shown on the website?