Market pay system
AssigneeCompensate.com LLC
InventorsDavid Beck, Alexander Dukhovny, David Meredith, David Ellis
Life of this patent
Estimating the term…
Abstract
Method and system for obtaining and using observed market rates in estimating suitable market-based compensation for one or more jobs. Each observed market rate is assigned a job family and a combination of a job category and a job level of responsibility (C/L). Median market rates and average market rates are observed for different job families and are combined in a novel way to produce job family factors and C/L factors that, when multiplied together accurately reflect market rates for that job, even for a combination of job family and job C/L that is not represented in the data.
Claims16
A method for estimating a market rate for tasks or competencies that are differentiated by job family or skill family, by category, and by level of responsibility or proficiency level, the method comprising providing a computer that is programmed:
- to provide a logarithm sk of an observed market rate, numbered k=1, 2, . . . , K, for each of a set of selected jobs, where each of the selected jobs has an associated job category and job level of responsibility, collectively referred to as a C/L combination, and has an associated job family;
- to provide a selected statistical average dh, numbered h=1, . . . , m, of the observed market rate logarithms for each of the C/L combinations;
- to assign to each of the selected jobs a logarithm xi corresponding to a job family, numbered i=1, 2, . . . , n (n≧2), and a logarithm yj corresponding to a C/L combination, numbered j=1, 2, . . . , m (m≧2), where the values of the quantities xi and yj are to be determined;
- to form a first (m+n)-row column matrix [X Y]tr, whose entries are the logarithms xi and the logarithms yj, and a second (K+m)-row column matrix [S D]tr, whose entries are the observed market rate logarithms sk and m selected statistical averages dh of the observed market rate logarithms;
- to construct a set of matrix relations [LeftBracketingBar] J R O I [RightBracketingBar] [LeftBracketingBar] X Y [RightBracketingBar] = [LeftBracketingBar] S D [RightBracketingBar]
- relating the values xi and yj to the values sk and dh, where J is a p×n matrix having one column, corresponding to each job family with at least one available observed market rate, and each column in J has an entry 1 for the corresponding job family and 0 entries elsewhere, where R is a p×m matrix having one column, corresponding to each C/L combination with at least one available observed market rate, and each column in R has an entry 1 for the corresponding C/L combination and 0 entries elsewhere, and where “O” is a q×m matrix of 0 entries and “I” is an m×m identity matrix;
- and
- to estimate solution values xi and yj for the set of matrix relations and forming a product of exp(xi) and exp(yj) to obtain a job family factor and a C/L factor for at least one of the observed market rates.
A system for estimating a market rate for tasks or competencies that are differentiated by job family or skill family, by category, and by level of responsibility or proficiency level, the system comprising:
- a source for market rate observations for each of a set of selected jobs;
- a computer that is programmed:
- to receive a logarithm sk of an observed market rate, numbered k=1, 2, . . . , for each of a selected set of jobs, where each of the selected set of jobs has an associated job category and job level of responsibility, collectively referred to as a C/L combination, and has an associated job family;
- to provide a selected statistical average dh, numbered h=1, . . . , m, of the observed market rate logarithms for each of the C/L combinations;
- to assign to each of the selected jobs a logarithm xi of a job family, numbered i=1, 2, . . . , n (n≧2), and a logarithm yj of a C/L combination, numbered j=1, 2, . . . , m (m≧2), where the values of the quantities xi and yj are to be determined;
- to form a first (m+n)-row column matrix [Xtr Ytr]tr, whose entries are the logarithms xi and the logarithms yj, and a second (K+m)-row column matrix [Str Dtr]tr, whose entries are the observed market rate logarithms sk and m selected statistical averages dh of the observed market rate logarithms;
- to construct a set of matrix relations [LeftBracketingBar] J R O I [RightBracketingBar] [LeftBracketingBar] X Y [RightBracketingBar] = [LeftBracketingBar] S D [RightBracketingBar]
- relating the values xi and yj to the values sk and dh, where J is a p×n matrix having one column corresponding to each job family with at least one available observed market rate and each column in J has an entry 1 for the corresponding job family and 0 entries elsewhere, where R is a p×m matrix having one column corresponding to each C/L combination with at least one available observed market rate and each column in R has an entry 1 for the corresponding C/L combination and 0 entries elsewhere, and where “O” is a q×m matrix of 0 entries and “I” is an m×m identity matrix;
- and
- to estimate solution values xi and yj for the set of matrix relations and to form a product of exp(xi) and exp(yj) to obtain a job family factor and a C/L factor for at least one of the observed market rates.
Dependencies are inferred from the claim text.