ERI_Logo 02122003 Assessor Series FAQ #1

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Frequently Asked Questions

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QUESTION:  Where do the numbers for salaries and wages come from?

 

For over 20 years, ERI’s methodology has been designed so as to be a premiere provider of quality information and survey data.  All available salary surveys sources for jobs have been carefully evaluated for validity, reliability and use.  Unreliable data sources and questionable data are identified and excluded from ERI’s analysis in order to assure ERI’s findings continue to meet the criteria of expert witnesses and acceptability in courts of law.

 

ERI methodology has evolved over the past two decades in our pursuit of the highest quality standards in our expanded offering of products.  During the past two decades ERI has won the patent for online interactive salary surveys, managed that patented survey (http://www.SalariesReview.com) for 10 years, seen the emergence of the Internet and supporting technologies such as optical character recognition data retrieval, built trusting relationships where we exchange data and products with 100s of survey firms, and contracted for leased proprietary datasets. 

 

We have also purchased PAQ Services, Inc. whose PAQ questionnaire has been collecting precise salary & incentive survey data since 1974, with over a million subject matter expert field job analyses in its databases.  ERI Economic Research Institute now collects data regarding competitive rates of pay, as well as COL and job characteristics, in 37 countries (including the US, Canada, UK and the EU).  Data sources and survey methods can be characterized as:

 

Optically character recognized (OCR) or pay data mined from organization provided forms (in the US: SEC 8-Ks, 10-Ks, proxies, annual reports, Form 5500s, Form 990s/EZs/PFs, etc.).

 

To assure the quality of our data, we do not conduct data mining of job postings as this data is so corrupted by search firms trolling for resumes for their temporary staffing divisions that it is statistically worthless for most analysis purposes (skill requirements and identification of specific jobs are of more interest to ERI).

 

Data collected via ERI's patented (March 2005) online interactive salary surveys (see: http://www.SalariesReview.com).  Each year, SalariesReview data becomes more robust and more used.  Salary levels run 10% above survey levels, explained in part by the fact that the minimal amount of data mined from job boards that passes validity tests are included in SalariesReview's salary and cost-of-living surveys.  Care is taken not to show data that might violate countries' privacy or anti-trust laws (including published US FTC 2005 Regulations, first effective in 1993).

 

Collected and analyzed published surveys (from exchanges with license agreements, where copyright laws allow) where “consensus” published norms might exist (a rule used by ERI since the mid '80s: “must exist in three or more published surveys;” see FAQ #6 concerning salary surveys used.)

 

Large survey databases and other leased datasets (see Methodology/Disclaimer for required disclosures) and other published data such as labor contracts or legislated pay norms (state of California union health care, The Netherlands pay schedule(s), Australian minimum rates, etc.).

 

Government data (UK, Canada, Portugal, etc., National Statistic Offices; in the US these include DOL OES, BLS CEW, Census earnings, and other non-copyrighted data sources).  These typically conservative values (because of immigration applications) can be found in the Geographic Assessor® & Survey Consultant Edition Prevailing Wage module.  ERI is also experimenting with data collection via the second leading "free" salary Internet site, http://www.SalaryExpert.com).

 

Analysis is conducted on wages by geographic area, size of company, job level, years of experience and industry. 

 

In summary, ERI has grown its data collection from a simple outsourcing of salary survey analyses into being a full-fledged survey and research firm utilizing proven methodologies and sources.

 

A question to ask any provider of competitive salary information is “where do you get your data?”  Over the next ten years, ERI expects the trend of seeing fewer and fewer viable salary survey organizations and surveys to continue.

 

Unless other providers of salary information are optically reading, sponsoring their own surveys (such as SalariesReview.com, etc.), leasing identified databases and/or taking the time and resources needed to research legislated, union, and other sources, then some obvious conclusions can be drawn as to the other providers data and reliability. The quality of ERI data is what distinguishes ERI from other providers.

 

Please see your Assessor Methodology for more information.