When other platforms estimate salaries for a given position, they use two factors: job title and job location. Together, those two may offer a ballpark figure, but they don’t provide an accurate estimate. For that, you need multifaceted salary estimation.
Datapeople is the only job description software that uses the content in your job descriptions in addition to title and location for multifaceted salary estimation.
Datapeople uses six factors in our multifaceted salary estimation. Not only do we use job title and location, but we also use company type and industry, as well as required skills, experience, and education. And it’s dynamic. As you make changes to your job criteria, the salary automatically adjusts accordingly.
And why is multifaceted salary estimation so important? Because many factors influence salary, not just title and location. And because accurate salary estimates help hiring teams understand if they’re overqualifying or underqualifying a position for their budget.
(Not) multifaceted salary estimation
These are the two factors that everyone uses in their salary estimating method. (Again, they’re not enough on their own, which is why Datapeople uses four more on top of these.)
1. Job title
Job title is a primary indicator of what a job is. Assuming that your hiring team accurately titles their job, it’s also an indicator of what the salary for the position should be. However, hiring teams don’t title their jobs the same. A Manager of Finance at Company X may be a VP of Finance at Company Y, even though the jobs and requirements are identical. That’s why title is just a starting point.
2. Job location
Job location has a big impact on salary, obviously, because salaries vary so widely among local markets. Datapeople, of course, factors in location. And for remote positions, Datapeople estimates salary by averaging salaries for similar jobs across all talent markets, from small to big.
Multifaceted salary estimation
These are the four additional factors that Datapeople uses in our multifaceted salary estimation. By thoroughly analyzing over 2,000,000 job descriptions from 40,000 companies, we can accurately gauge how company type and industry, skills, experience, and education all impact salary.
3. Company type and industry
It’s one thing to work for a Fortune 500 company and quite another to work for a startup. And it’s one thing to work in the finance industry and another to work in social services. Company type and industry have a big impact on salaries, so Datapeople takes these into consideration.
The skills you list in the requirements section tell the real story of a job regardless of the title and responsibilities section. You can title a position as entry level, but listing a mid-level skill set will signal mid level to job seekers. Datapeople looks at requirements to match the salary to market. As you make changes to requirements, you see the salary match.
5. Years of experience
In particular, years of experience has a huge impact on salary. (Just ask any recent college graduate.) If you’re incorrectly stating the minimum experience required, your candidates’ desired salary ranges may be out of reach for your budget. Datapeople provides a good gauge as you write.
Lastly, education can also have a big effect on salary. It goes without saying that job seekers expect a position that requires a Masters degree to pay more than one asking for a Bachelors, and one that requires a Ph.D. to pay more than one requiring a Masters. Datapeople takes education requirements into account as well.
Multifaceted salary estimation goes beyond title and location
Two factors aren’t enough to accurately gauge a job’s salary level. In addition to title and location, you also need to assess company type and industry, skills, years of experience, and education level.
Datapeople is the only job description software that goes beyond title and location by themselves. It’s the only platform that uses the content of your job descriptions for real-time, accurate, multifaceted salary estimation.
If you’d like to learn more about Datapeople, give us a call. We’ll explain how Datapeople can make hiring more efficient and fair at your organization. We’ll also show you how we make implementation easier through usage analytics and more.