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6 - Compensation Analytics I

Published online by Cambridge University Press:  23 March 2020

Jed DeVaro
Affiliation:
California State University, East Bay
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Summary

This chapter responds to the growing importance of business analytics on "big data" in managerial decision-making, by providing a comprehensive primer on analyzing compensation data. All aspects of compensation analytics are covered, starting with data acquisition, types of data, and formulation of a business question that can be informed by data analysis. A detailed, hands-on treatment of data cleaning is provided, equipping readers to prepare data for analysis by detecting and fixing data problems. Descriptive statistics are reviewed, and their utility in data cleaning explicated. Graphical methods are used in examples to detect and trim outliers. The basics of linear regression analysis are covered, with an emphasis on application and interpreting results in the context of the business question(s) posed. One section covers the question of whether or not the pay measure (as a dependent variable) should be transformed via a logarithm, and the implications of that choice for interpreting the results are explained. Precision of regression estimates is covered via an intuitive, non-technical treatment of standard errors. An appendix covers nonlinear relationships among variables.

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  • Compensation Analytics I
  • Jed DeVaro, California State University, East Bay
  • Book: Strategic Compensation and Talent Management
  • Online publication: 23 March 2020
  • Chapter DOI: https://doi.org/10.1017/9781108861458.007
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  • Compensation Analytics I
  • Jed DeVaro, California State University, East Bay
  • Book: Strategic Compensation and Talent Management
  • Online publication: 23 March 2020
  • Chapter DOI: https://doi.org/10.1017/9781108861458.007
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Compensation Analytics I
  • Jed DeVaro, California State University, East Bay
  • Book: Strategic Compensation and Talent Management
  • Online publication: 23 March 2020
  • Chapter DOI: https://doi.org/10.1017/9781108861458.007
Available formats
×