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Thank you for the great post. It is interesting that the prevailing mindset for answering the survey question was 'external comparisons'. If this particular mindset prevails throughout organizations, than a significant % of employees already have had compensation "removed from the table", i.e employees who are already beyond the market P75 for their job. (10-15%?). This might reduce the overall financial exposure to a company in taking this initiative to much less than the differential from P50 - P75 (10-15% of current payroll?). It might be closer to 3-5% of overall payroll in organizations with many employees who are newly tenured in role and who (presumably) would not being making an exact external median-market comparison for themselves.

I think this data is really interesting. I am not surprised that most people base their decision off what other people doing their job are making... if people think they can make more money doing the same job somewhere else why would they stay? I am interested to hear about the rest of the data you collect! Thanks for sharing!

It would be great to do this research and surveys using a greater sample and across I industries to slice and dice and determine if there were relationships between generations and industry types

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About The Author

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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