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Statistics for Compensation: A Practical Guide to Compensation Analysis, by John H. Davis
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An insightful, hands-on focus on the statistical methods used by compensation and human resources professionals in their everyday work
Across various industries, compensation professionals work to organize and analyze aspects of employment that deal with elements of pay, such as deciding base salary, bonus, and commission provided by an employer to its employees for work performed. Acknowledging the numerous quantitative analyses of data that are a part of this everyday work, Statistics for Compensation provides a comprehensive guide to the key statistical tools and techniques needed to perform those analyses and to help organizations make fully informed compensation decisions.
This self-contained book is the first of its kind to explore the use of various quantitative methods—from basic notions about percents to multiple linear regression—that are used in the management, design, and implementation of powerful compensation strategies. Drawing upon his extensive experience as a consultant, practitioner, and teacher of both statistics and compensation, the author focuses on the usefulness of the techniques and their immediate application to everyday compensation work, thoroughly explaining major areas such as:
-
Frequency distributions and histograms
-
Measures of location and variability
-
Model building
-
Linear models
-
Exponential curve models
-
Maturity curve models
-
Power models
-
Market models and salary survey analysis
-
Linear and exponential integrated market models
-
Job pricing market models
Throughout the book, rigorous definitions and step-by-step procedures clearly explain and demonstrate how to apply the presented statistical techniques. Each chapter concludes with a set of exercises, and various case studies showcase the topic's real-world relevance. The book also features an extensive glossary of key statistical terms and an appendix with technical details. Data for the examples and practice problems are available in the book and on a related FTP site.
Statistics for Compensation is an excellent reference for compensation professionals, human resources professionals, and other practitioners responsible for any aspect of base pay, incentive pay, sales compensation, and executive compensation in their organizations. It can also serve as a supplement for compensation courses at the upper-undergraduate and graduate levels.
- Sales Rank: #136852 in Books
- Published on: 2011-05-03
- Original language: English
- Number of items: 1
- Dimensions: 10.40" h x 1.20" w x 7.30" l, 2.15 pounds
- Binding: Hardcover
- 456 pages
Review
“As an experienced compensation manager for a publicly traded Fortune 500 company, I have found this book to be an all-inclusive, highly useful and informative desk reference. It certainly has been extremely valuable in helping me to contribute to successful strategic decisions at my company.” (Workspan, 1 January 2013)
"The book can serve as a text for students specializing in compensation or human resources, or as a reference for practitioners. He provides worked examples throughout." (Booknews, 1 June 2011)
From the Back Cover
An insightful, hands-on focus on the statistical methods used by compensation and human resources professionals in their everyday work
Across various industries, compensation professionals work to organize and analyze aspects of employment that deal with elements of pay, such as deciding base salary, bonus, and commission provided by an employer to its employees for work performed. Acknowledging the numerous quantitative analyses of data that are a part of this everyday work, Statistics for Compensation provides a comprehensive guide to the key statistical tools and techniques needed to perform those analyses and to help organizations make fully informed compensation decisions.
This self-contained book is the first of its kind to explore the use of various quantitative methods—from basic notions about percents to multiple linear regression—that are used in the management, design, and implementation of powerful compensation strategies. Drawing upon his extensive experience as a consultant, practitioner, and teacher of both statistics and compensation, the author focuses on the usefulness of the techniques and their immediate application to everyday compensation work, thoroughly explaining major areas such as:
-
Frequency distributions and histograms
-
Measures of location and variability
-
Model building
-
Linear models
-
Exponential curve models
-
Maturity curve models
-
Power models
-
Market models and salary survey analysis
-
Linear and exponential integrated market models
-
Job pricing market models
Throughout the book, rigorous definitions and step-by-step procedures clearly explain and demonstrate how to apply the presented statistical techniques. Each chapter concludes with a set of exercises, and various case studies showcase the topic's real-world relevance. The book also features an extensive glossary of key statistical terms and an appendix with technical details. Data for the examples and practice problems are available in the book and on a related FTP site.
Statistics for Compensation is an excellent reference for compensation professionals, human resources professionals, and other practitioners responsible for any aspect of base pay, incentive pay, sales compensation, and executive compensation in their organizations. It can also serve as a supplement for compensation courses at the upper-undergraduate and graduate levels.
About the Author
JOHN H. DAVIS, PhD, is a Certified Compensation Professional and President of Davis Consulting, where he has consulted on salary surveys, statistics, base pay programs, incentive programs, and performance management programs for numerous Fortune 1000–size organizations. He has taught undergraduate and graduate statistics courses and, for the past three decades, has taught thousands of compensation and human resources professionals statistics and its application to common problems in their fields.
Most helpful customer reviews
3 of 3 people found the following review helpful.
Buy Now!
By RY_MBA-CCP
If you are striving to gain a sound fundamental understanding on relevant compensation analyses or if you are laboring with performing comprehensive analyses to uncover pay inequities amongst your company employees... I believe that you will find this book to be instrumental, with a hands-on, insightful focus on the statistical methods that will enlighten even the most tenured compensation practitioners.
I am a Certified Compensation Professional (CCP), and Compensation Manager for a publicly-traded Fortune 500 company; I have found this book to be an all-inclusive, highly useful desk reference for today's compensation practitioner. It certainly has been extremely valuable in helping me to contribute in successful strategic business decisions.
This book provides easy to follow instructions for statistical techniques and knowledge to anyone seeking to execute as a bona fide "Analyst". The content of this reference aid provides today's compensation analysts and other analytical professionals, the "how to" source in producing relevant analytical information and to play an active role for better strategic decision-making. Analyses that answer questions such as, "What is our market position?", "What should our salary increase budget be the next three years?" etc., are given in this text with step-by-step detailed approaches.
If you have an analytical need and you are unclear on how to execute, I urge you to source John Davis' "Statistics for Compensation: A Practical Guide to Compensation Analysis"... more times than not, this book has saved me time by having the answer, with most times, an alternative insight that I had not considered. Consistently to my delight, I've tried alternative statistical methods in this book that have proven value-added and essential in decision-making, both strategic and tactical.
1 of 1 people found the following review helpful.
Excellent Resource for Compensation Statistics
By RLC
As someone that deals with compensation on a monthly basis, though not an HR compensation professional I have found this to be an excellent resource. This appears to be a college textbook and as such is not out of line for price, also it is targeted to a narrow audience which would also increase the price. But it is expensive, though cheaper than college courses if one is able to self-learn and the knowledge contained in the book is sufficient for what one needs to accomplish.
The statistics are basic for the college level but I think it is valuable to see the methods applied to a specific topic such as this with targeted examples, and valuable to someone that may not have had much exposure to statistics or really grasped the subject very well.
Though I use some of the statistics and aggregations on a monthly basis in creating what I am asked to, there have been some "wow" moments in the book for me. Although I have knowledge of the statistics, when one is in the "grind" we don't always stop and think what else could be done to add value and knowledge. One such bit of knowledge was applying future value to a retention bonus. No one in the organization had thought to see if it was feasable to set aside a sum of money at present value to generate the remainder of the retention bonus via intrest at its due date. While money is in interst bearing vehicles, none is in accounts with this specificity.
Thanks to the authors section on models I am now beginning to frame some up.
The statistical teaching is solid, the methodology seems solid, and as a textbook there are chapter questions and answers.
There is an Excel file of the datasets at the publishers website so one can work the examples in the book, the workbook also includes an index for each dataset listing dataset number, chapter, item (page number, category selection, examples, etc.), and any tables they are used in.
I feel this book is good for a student, a practicing professional that deals with compensation, and good for those just wanting to learn about the subject and even for basic stats (I think the examples tied to a real world problem are valuable for those learning stats in a non-formal environment).
For me it has helped to break out of the methods I inherited (this is the way we do it), apply some things I knew but hadn't thought to apply, and add value for my employer.
1 of 1 people found the following review helpful.
Learn about statistics, tables, graphs, and charts as they apply to setting salaries at your company.
By Jeff Lippincott
An interesting book. It comes across as a college textbook of sorts. And it is hard to love a college textbook. Thus I cannot rate the book higher than a four for starters. I was an accounting major in college, and I had to take Statistics 201 and 202 as a sophomore in order to graduate. As I read this book I recognized just about everything mentioned regarding the statistics discussed. Of course, I earned 6 credits spread over two semesters in statistics, and this book looks like it would be worth no more than 2 college credits if a course were built around it.
I have a little bit of an issue with the outline of the book. It seems to me that chapters 3-10 plus 17 should be grouped together as a Part I, and chapters 11-16 should be grouped together as a Part II. That way the basics of statistics are grouped together and then the applications of statistics to compensation analysis are grouped together. The material covered between pages 319 and 355 probably should be grouped as Appendix A (Miscellaneous Topics), the Glossary should be made Appendix B, and the Answers called Appendix C. Poor organization of a college textbook lowers the rating by yet another star.
This book is all about explaining to the reader the need and the how to of converting raw compensation data into information that can be analyzed and used in decision making processes. You'll need to become expert at summarizing data with tables, graphs, and charts. And you'll need to be able to use statistical formulas on the data often times in order to make meaningful sense of it. This book explains this quite well.
I guess my main question after reading the book is whether a compensation expert should simply take the two classes I took in college and then apply that material to the world of setting compensation levels for companies. Or should they read the instant book where statistics is certainly covered, but the coverage is definitely watered down? The price of the book is in keeping with college textbooks, but it is not too bad. It might be a good idea to get the book as an overview of what to consider when analyzing compensation for a job. And if you want more coverage of statistics, then take the college classes I took. 3 stars!
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