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salary.com’s pay cut courtesy of payscale

Thu, Jul 31, 2008

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Salary.com (SLRY) is getting a run for its money thanks to PayScale, a compensation data site that compiles extensive research on millions of people and aggregates that content for research and development purposes.

PayScale Founder Joe Giordano said, “Salary.com’s database is based on traditional salary surveys run by consultants. When you go to their site, you get a drop-down menu that might say ‘Programmer 1, 2, or 3.’ It’s very frustrating for a consumer to understand which category they’re in. Then they get the perception that they’re bucketed into a small number of groups in an analysis that’s not at all detailed.”

PayScale isn’t interested in grouping employees by their level of skill. Instead, they ask questions about ancillary benefits that are hard to track, like commute time, benefits, number of years in position, company size, flexible work schedules, and dress code along with salary to gain a richer understanding of someone’s career.

This data can be mined by not only employees who want see what they’re worth, but also companies, who utilize PayScale’s research center to analyze their competitors or restructure their own internal compensation plans.

“We are the go-to source for job market data, whether it be for research analysis or news stories,” Giordano said. “We are really building up momentum and getting great word-of-mouth referrals.”

PayScale has also made a lot of aggressive moves internationally, mostly because Giordano said it’s difficult for companies outside of the U.S. to get valid compensation data without organizations such as the U.S. Bureau of Labor Statistics.

“We’re focusing on compiling our data for English-speaking countries like Canada, the United Kingdom, Australia, New Zealand, and in countries where English is strong, like Singapore and India,” Giordano said.

He said they have strong partnerships in Great Britain, most notably with Monster UK. But Giordano said PayScale’s biggest fans are job boards, who like to give their users the option of researching salary info. They currently have partnerships with AOL Jobs, Jobster, SimplyHired, and Indeed.

There are more big names to come, but for now, Giordano is mum on that topic.

Giordano said that in the future, users can look to PayScale to as a career management tool, in which they will be able to plot their entire career path, from graduation to retirement, utilizing a feature called Gigzig that maps job pathing information from Payscale’s large network of profiles.





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This post was written by:

Vanessa Dennis - who has written 203 posts on Cheezhead.

Vanessa Dennis, originally from Austin, Texas, was a corporate recruiter for two years before becoming a writer for Cheezhead.com. Vanessa has an English Writing degree from Loyola University of New Orleans. She currently lives with her family in Cleveland.

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1 Comments For This Post

  1. Monster_UK Says:

    Speaking from a job board perspective, we’ve been highly impressed with the tool provided from Payscale. From both the jobseeker and employer point of view there are plenty of ways to get the information you’re after.

    In the past we’ve had to rely on either government statistics or data taken from job postings. As far as I’m aware, Payscale offer the only way of getting information collated from real people doing real jobs.

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