Book Description

Effective comparisons between salaries of one engineer-scientist population and those of another may be made in two ways, using equations developed in this study. The first compares the aggregate salary of a given population with the aggregate salary of the population used in developing the equations of this study. The steps necessary to make such a comparison consist in: (1) obtaining point-of-hire characteristics of the population to be compared, (2) entering the values of the variables called for in the equation developed in this study, (3) computing the sum of the salaries, and (4) comparing results with the sum of the actual salaries being paid. The second type of comparison consists in developing a regression equation concerning the population to be compared, using point-of-hire variables identical with those used in this study. The coefficients or parameters of the resulting equations may then be compared to those of the equations developed here to provide insights concerning the relative emphasis placed by management (knowingly or unknowingly) on selected characteristics of new hires. The coefficients or other parameters amount to a kind of profile, and by knowingly controlling them, a management may choose the characteristics that it wishes to stress in salary determinations. Thus the salary structure may become a more effective means to implement policy.