Compensation benchmarking is the foundation for everything related to comp: budgeting, hiring, employee development, retention, and promotions. But for these efforts to be successful, you need data that’s fresh and relevant to your business. Without comp data that reflects today’s market, you risk wasting time and resources, over or under paying for talent, and creating internal equity issues.
With Market Analysis and Data Lookup in OpenComp, you can instantly see how your company’s pay practices stack up to your peers. Together, Market Analysis and Data Lookup provide access to comp data that accounts for your company’s size, industry, and funding stage, and insights that help you create pay programs that retain top performers longer, and hire the talent you need to scale effectively.
Companies that use OpenComp Market Analysis & Data Lookup enjoy 87% retention rates. That's powerful compensation benchmarking!
Read on to learn how Market Analysis and Data Lookup can help you access the most relevant comp data for your organization so that you can benchmark compensation as accurately as possible.
Unify your data in Market Analysis.
On paper, compensation benchmarking may seem like a straightforward process. Simply choose a comp data source, map your employee data to the market data, and see how your pay stacks up to peers. But for HR leaders, it hasn’t actually been this simple. Until they’ve used OpenComp.
Different companies use the same job title for positions that have varying roles and responsibilities, surveys have gaps, inconsistencies, and aged comp data, and benchmarking manually is time-consuming and error prone. Which is why traditional compensation data providers don’t cut it anymore. Modern businesses need up-to-date market data that’s seamlessly matched to your organization’s internal data in an easy-to-use platform, and automatically updated as you make changes to your business.
OpenComp Market Analysis checks these boxes for you, enabling you to access the most accurate compensation data whenever you need it.
When your business is uploaded into OpenComp, Market Analysis uses firmographic information to parse our proprietary dataset to provide you with comp data that is relevant only to your specific business, so you won’t be left wondering if what you’re seeing actually matters to you. And with data received directly from employers, rather than from employees, you can be sure what’s reported is accurate and truthful.
Your compensation data set is reviewed continuously by compensation experts, who apply regression analysis and best practices to ensure market data is logical and complete across all job families and levels. So unlike other providers, you’ll never be given data that contains gaps, or irregularities across levels.
To unify our best-in-class market data with your own internal data, OpenComp supports 20+ Human Resource Information System (HRIS) and Equity provider integrations. Once connected, your HRIS and Equity integrations feed information back into OpenComp in near real-time, updating both your employee data and the insights gleaned from it, without any manual work required. Because every hire and promotion changes the mix and profile of your business, daily insight is required in order to rebalance your organization and stay competitive.
To ensure that your internal roles are matched accurately to your market data, OpenComp Market Analysis utilizes AI-powered indexing and normalization that matches all roles, levels, locations, and compensation for direct comparison. Our AI-powered indexing and normalization will also detect inconsistencies in your data, and flag them for manual review and validation. This automated process ensures job matches are 100% on point.
OpenComp Market Analysis is a comp tool that unifies and updates your data instantly, saving you weeks or months of time.
Surface actionable insights and empower data-driven decisions with Market Analysis.
Once your company is synced via our AI-powered indexing and normalization process, you’ll gain powerful insights into how your business pay practices stack up to your peers. Right away, you’ll see how your company’s pay compares to the market across all three components of compensation – base salary, total cash, and equity. Interactive visualizations make it easy to understand where your individual employees fall within each segment of the market, and enable you to operate at a level of efficiency that’s unachievable when relying on spreadsheets.
Market Analysis is a comp tool that provides the ability for you to benchmark by department, providing you with all of the control and detail you need to run a world-class compensation program. You’re also able to filter your benchmarks by levels, gender, and ethnicity, which makes it easier for you to uncover any inequalities that may have crept into your organization.
Automated cost-to-market adjustment calculators make it easy to understand the costs associated with bridging any gaps in your existing pay programs, ensuring your practices are both fair and competitive. This also makes it easier for you to understand the costs associated with updating your compensation philosophy or targeting a higher percentage of the market for different functions. For instance, it’s not uncommon for organizations to target the 50th percentile of the market for all go to market roles, but the 75th for product and engineering. Market Pulse’s automated cost-to-market adjustments update in real-time to help you understand the financial implications of making even the slightest changes, without manual effort. Insight is provided at the company, department, and individual employee level, so you have a complete view of how costs may impact your organization, and where they stem from.
You can also access all of your individual employee information in Market Analysis. When viewing an employee’s profile, you’ll be able to see their current compensation information, role, level, and location, as well items like their start and end date, demographic information, and who they report to. If you’ve activated Ranges in OpenComp, you’ll also be able to get a granular view into the employee’s range position and quickly understand what adjustments or growth opportunities are available to them.
Market Analysis does the heavy lifting of uncovering insights for you, enabling you to make data-driven decisions faster than ever.
Build competitive offers right when you need them with Data Lookup.
Hiring for a new role that hasn’t previously been filled is an exciting company milestone as you scale. But it can also create a headache for sourcing the right compensation data. Employee-reported data sources aren’t reliable, leveling and role matching differs between companies, and survey data can be pricey and difficult to cipher through. That’s where OpenComp’s Data Lookup comp tool can help.
Data Lookup lets you quickly gut-check the cost of future roles and provides the information you need while accounting for your current compensation practices, and optimizing for competitiveness.
To price any role in Data Lookup, simply enter the benchmark role, level and location. Instantaneously, Data Lookup provides the data for base salary, total cash, and equity. Visualizations also give insight into what benchmarks look like for each percentile of the market, so you are able to price any offer with accuracy and precision. OpenComp’s dataset underpins the Data Lookup tool and full software experience, so your insights are always custom-fit to your company’s criteria.
The same cost-to-market calculations delivered in Market Analysis are provided in Data Lookup, making it easy to understand the adjustments needed to help optimize your offer for competitiveness, and you have the ability to see how the market varies across locations in just a few clicks.
If you’ve activated OpenComp Ranges, the Data Lookup tool will also provide the exact pay ranges for your potential offer. You’ll also be able to see the boundaries of pay ranges for the levels above and below the role, and see how this employee compares to other employees at the same level with similar functions.
With Data Lookup, you’ll no longer have to stress about pricing new or ad-hoc roles and transfers. You’ll operate with confidence knowing that your compensation programs are optimized for competitiveness and fairness.
Benchmark your entire organization in OpenComp Market Pulse.
OpenComp Market Analysis and Data Lookup are both features of the OpenComp Market Pulse Solution and valuable comp tools.
Market Pulse helps you say goodbye to stale, in-actionable data and spreadsheets, and say hello to one single source of truth with compensation benchmarks and data that are updated daily. With Market Pulse, you can deliver accurate and fair pay practices that current and potential employees will love, and know that you’re making decisions with the most relevant data for your organization.
Lexie Sirak is a Senior Campaigns Coordinator at OpenComp and previously worked at JPMorgan Chase & Co. Connect with her on LinkedIn here.