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Accurate job matching is a critical step in salary benchmarking and setting pay ranges. It goes beyond simply comparing job titles; it involves a thorough examination of the tasks, responsibilities, skills and qualifications required for each role to ensure that the positions being compared are truly aligned. Without this precision, compensation structures can become inconsistent, leading to issues such as overpaying or underpaying employees, internal dissatisfaction, and difficulties in attracting and retaining top talent.

Why Accurate Job Matching Matters

Getting roles aligned when salary benchmarking is especially important in the consulting sector due to the complex and varied nature of consulting roles. Consultants often work across different client industries, each with unique demands, and their responsibilities may shift depending on the project, client, or region. This makes it critical to go beyond surface-level job titles and ensure a deep understanding of the specific tasks & responsibilities as well as experience and expertise required for each position. Accurately aligning the roles to be compared in a benchmarking exercise (i.e. job matching) also:

1. Ensures fair compensation: When roles are accurately matched, organizations can set salaries that reflect the actual work being done. This prevents disparities that could arise from comparing roles that aren’t equivalent in scope or responsibility.
2. Reduces pay inequities: Proper job matching helps maintain equity by ensuring that employees with particular responsibilities and skills are compensated at similar rates across markets. This fosters a sense of fairness and reduces the risk of pay-related grievances.
3. Enhances talent retention: Competitive and fair compensation is key to retaining top talent. When job matching is done accurately, organizations can better align their pay scales with the market, not just across broader levels, but also at more granular sub-levels. This ensures that existing incumbents are paid exactly what they deserve, while attracting the right candidates to the role.
4. Supports strategic decision-making: Accurate job matching provides reliable data that can be used to make informed decisions about salary adjustments, promotions, and workforce planning.

Key Principles for Accurate Job Matching

At Vencon Research, we don’t see job matching as an extra; it's at the heart of how we benchmark salaries. By prioritizing this process and working closely with our clients, we help ensure that compensation structures are fair, competitive, and aligned with the realities of the market. This level of detail is what sets us apart and helps our clients stay ahead in attracting and retaining talent. Key principle in our methodology are:

1. Focus on tasks & responsibilities, not titles: Job titles can be misleading, as the same title might encompass different responsibilities across companies. The focus should be on what the job actually entails—its core duties, the level of decision-making required, and the tasks, responsibilities and skills necessary to perform the role.
2. Consider experience and skills: Beyond responsibilities, the experience and skills needed for a role should be closely examined. This ensures that comparisons are made between roles that require similar levels of expertise.
3. Use a tiered approach: Grouping roles into tiers based on their level of responsibility and impact within the organization can help standardize the job matching process. This makes it easier to compare similar roles across different industries and companies.
4. Engage in collaborative analysis: Job matching shouldn’t be a one-sided process. Engaging multiple stakeholders—such as HR professionals, hiring managers, and industry experts—can provide a more comprehensive view of the role and ensure that all relevant factors are considered.
5. Keep market trends in mind: The job market is dynamic, and roles evolve over time. Regularly updating job matching criteria to reflect current trends in responsibilities and required skills is essential for maintaining accuracy.

Defining Career Progression and Levels

Our career progression structure reflects a transparent roadmap from entry-level Analysts to Partners. Matching participant firms’ own job levels to this structure serves as the foundation for accurate salary benchmarks. Mis-leveling a role can lead to significant discrepancies in pay so ensuring that roles are placed at the correct level is crucial. When incorporating a participant firm for our benchmarking surveys, we analyse the firm’s roles and find the appropriate match across 15 individual sublevels in order to structure in line with a standard 5 level / 15 sublevel output. Alternatively, we adjust to an output that reflects their own level matching. In both cases, we work closely with the firm to ensure the exercise is accurate and reflects the realities of the roles.

Task and Responsibility-Driven Matching

Vencon Research’s methodology focuses on task and responsibility-driven matching to ensure roles are assigned to the correct level. Unlike time-based metrics, this approach aligns job matching responsibilities, ensuring that tasks, responsibilities, skills and competencies directly correspond to the actual requirements of each role. This leads to a more accurate and nuanced understanding of an individual’s contribution.

Our criteria for each level are extensive, and build on a distinct understanding of differing tasks and responsibilities as a consultant progresses in their career from an Analyst via Principal (Consultant Salary Surveys) to a Primary Partner and further to a Senior Partner (Partner Salary Survey). At the entry level, Analysts focus on data gathering and analysis under supervision. As professionals advance to the Associate level, they engage more with clients and manage projects, requiring advanced analytical tools and leadership skills. Managers take on the first level of personal responsibility as well as full accountability for project deliverables and deepen their industry-specific expertise. Senior Managers oversee multiple assignments, guiding junior colleagues while managing profit and loss responsibilities. the final level within the Consultant Salary Surveys is the Principal level, those taken out of the “day to day” business and responsible for implementing the strategy decisions decided upon by the partners (Partner Survey).

A Commitment to Accuracy

Accurate job matching is more than just a technical exercise; it is the essential entry point to fair and effective compensation structures. When done right, it ensures that salaries align, first and foremost with actual job responsibilities, while also aligning with market standards, fostering a sense of fairness within the organization and beyond. This, in turn, helps retain top talent and positions the company as an attractive place to work.

For organizations, the benefits of accurate job matching are clear—ensuring competitive pay, maintaining internal equity, and supporting informed decision-making. By following principles such as focusing on tasks and responsibilities over titles, engaging in collaborative analysis with experts and keeping an eye on market trends, companies can create compensation structures that are not only fair but also competitive.

At Vencon Research, we place job matching at the heart of our benchmarking process because we believe that precision in this area sets the stage for everything else. By working closely with our clients and using a task and responsibility-driven approach, we help ensure that their compensation strategies are built on a solid foundation, enabling them to attract, retain, and motivate the talent they need to succeed.

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An Invaluable Tool for Compensation Management

Salary survey reports are invaluable tools for compensation management. By understanding key indicators and leveraging data-driven insights, businesses can develop competitive compensation strategies that attract, retain, and motivate top talent effectively.

Find out more about Vencon Research's Consultant Salary Survey here.

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As a trusted HR partner for the consulting industry, Vencon Research is here to help you unlock the full potential of your team. Contact us to learn more about how we can support your HR needs and drive success for your business.

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Key HR indicators for the consulting industry

This collection of market statistics briefs highlights key consulting market statistics across six countries in the Asia-Pacific (APAC) region: Australia, China, India, Japan, Singapore, and South Korea. It offers insights into various key factors, such as the highest paying lines of businesses, market growth, starting salaries, career progression, and market pay level.

Notable highlights across APAC countries

• The year-on-year market headcount increase across these six countries ranged from 5% to 10%, with “Energy, Environment,     Sustainability Consulting” and “Risk Advisory Services” lines of businesses witnessing the largest growth.
• The average time required to progress from analyst level to partner level ranged from 24 to 28.5 years, with China having the fastest track.
• “Strategy-Oriented Management Consulting” was one of the highest-paid lines of business.
• Japan had the highest bonuses (relative to fixed salary) across LOBs and levels (18% median and 43% maximum) and Australia the lowest (10% median and 28% maximum).

The sheets also present median salaries for all Vencon Research career levels as percentages of basic salaries paid in the United States. Out of the six countries presented here, consultants in Australia and Singapore were paid the highest, ranging from 50% to 75%, while those in India were paid the least, ranging from 13% to 38%.

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By Andy Klose - Associate Partner, Head of Advisory

Traditional single-track career and salary models often employ wide salary bands, which can lead to pay compression and employee dissatisfaction. In contrast, multi-track career and salary models offer a clear path for advancement and compensation, fostering motivation and transparency. This article explores the drawbacks of wide salary bands and the benefits of adopting multiple career tracks with defined salary increments.

The Problem with Wide Salary Bands

Wide salary bands within a single-track career model can create significant challenges for organizations and their employees. These bands are typically characterized by overlapping salary ranges that are often wider than the market average.

These wide salary bands can lead to several issues:

1. Pay compression and low pay hygiene: Wide salary bands result in pay compression, when salary increases over time do not adequately reflect differences in responsibilities, role, experience, or performance. This compression can cause high-performing employees to feel underappreciated and undervalued, leading to decreased motivation and loyalty. Moreover, the lack of clear pay hygiene — meaning transparent and fair salary structures — can result in dissatisfaction and disengagement.
2. Confusion and false expectations: The lack of clarity regarding pay increases and promotions often leads to confusion and false expectations. Employees may expect significant pay increases upon promotion, only to be disappointed by minimal adjustments. This can result in frustration and a sense of stagnation, particularly for high-performers who feel their efforts are not adequately recognized.
3. Sense of unfairness and demotivation: Employees may perceive the wide salary bands as unfair, especially if they see colleagues at the same career level (even if roles and performance may be different) earning significantly different salaries. This perception of unfairness can demotivate employees, reducing their productivity and commitment to the organization.
4. Lack of transparency and meritocracy: The single-track model frequently lacks transparency, as the pay grid is not shared with employees. This opacity allows for pay increases to be subject to discretion, leading to end-of-year negotiations that can descend to the level of haggling. Such practices undermine meritocracy, affecting employee motivation and loyalty.

Examples of Single-Track Model Issues

Theoretical potential vs. reality (1): In theory, an employee could move from the bottom of one salary range to the top of the next, a potential increase of approximately 250%. However, in reality, the company may offer just an 8% raise.

Discretion vs. planned pay advancement (2): A high-performer may expect to receive a 15% increase based on experience from previous promotions, while the company may prefer to offer just an 10% raise.

Frustration with pay disparities (3): Employees can become frustrated when they learn that colleagues at the same level are earning significantly more, e.g., with Base Salaries several times higher, especially if there is not much more differentiation than career level (e.g. to understand how roles may differ).

The Benefits of Multiple Career Tracks

In contrast to the single-track model, multi-track career and salary models offer a more structured and transparent approach to compensation. The multi-track model defines specific roles and levels within the organization, each with a set Base Salary or “spot value” along various distinct tracks.

Key advantages of the multi-track career and salary models include:

1. Clear pay development: For each track and level, Base Salary is clearly defined, with increases to the next levels outlined as specific percentages. This clarity creates a straightforward path for employees, allowing them to understand exactly what they need to achieve to advance.
2. Transparency and clarity: The pay grid in a multi-track model is typically transparent, providing employees with a clear understanding of their pay potential. This transparency eliminates confusion and sets realistic expectations for salary development.
3. Reduced need for negotiation: Since the company adheres to a set pay grid, there is little need for negotiation. Variance in compensation is based on KPI achievements and variable bonus pay-outs, which reflect performance differences and motivate high-achievers.
4. Focus on meritocracy: The model based on "spot values" promotes a meritocratic environment, as seen in many leading strategy consulting firms. Employees know what Base Salary to expect at the next career level, shifting their focus to achieving promotions rather than negotiating salaries.

Optimising Career Tracks

The transition from a single-track career and salary model with wide salary bands to a multi-track model with defined salary increments offers numerous benefits for both organizations and employees. By providing clear pathways for advancement and compensation, companies can foster motivation, transparency, and a meritocratic culture that attracts and retains top talent.

The multi-track model addresses the challenges posed by wide salary bands, creating an environment where employees are motivated to excel and achieve their career goals.

We are at your disposal for further questions and suggestions regarding how you optimally design career tracks (and/or remuneration systems) for your company.

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Andy Klose is an Associate Partner at Vencon Research International and heads the firm’s consulting unit.

Vencon Research International is a leading provider of compensation benchmarking and research as well as of compensation and performance-related consulting services for professional service firms, especially for audit and tax, management consulting, and IT services firms. Vencon Research International provides services to a full range of clients in more than 75 countries worldwide and is proud to name more than 85% of the world’s major consulting and/or professional services firm its clients.

Disclaimer: The example provided is simplified, and these are not suggestions but ideas. Any real-life application or implementation requires an in-depth analysis of the client’s circumstances, along with a custom-designed solution. Decisions regarding compensation models should be made with careful consideration of the organization’s specific needs and objectives.

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Key HR indicators for the consulting industry

This collection of market statistics briefs highlights key consulting market statistics across five countries in the Eastern Europe region: Hungary, Slovakia, Poland, Czech Republic, and Romania. It offers insights into various key factors, such as the highest paying lines of businesses, market growth, starting salaries, career progression, and market pay level.

Notable highlights across Eastern Europe

• The year-on-year market headcount increase across these five countries ranged from 1% to 4%, with “Strategy-Oriented Management Consulting” and “IT Risk & Cyber Security Consulting” lines of businesses witnessing the largest growth.
• The average time required to progress from analyst level to partner level ranged from 25 to 30 years, with Poland and Hungary having the fastest track.
• “Strategy-Oriented Management Consulting” was one of the highest-paid lines of business and "Big Data and Analytics" also ranked among the top three highest paid in three of five countries.

The sheets also present median salaries for all Vencon Research career levels as percentages of basic salaries paid in the United States. Out of the five countries presented here, consultants in Czech Republic were paid the highest, ranging from 30% to 61%, while those in Hungary were paid the least, ranging from 23% to 42%.

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By Makar Evdokimov - Data Integrity Senior Associate

At Vencon Research, we pride ourselves on being the leading specialist provider of compensation and pay metrics to the global professional services, management, and IT consulting industries.

In this article we take a closer look at the statistical measures used in our compensation reports to represent remuneration levels in the market. Taken together these ensure accuracy and relevance for a variety of benchmarking purposes.

Mean: a common starting point with considerable limitations

Looking at the average (mean) salary might be the most intuitive way to get an idea about the overall situation in the market. Statistically speaking, the arithmetic mean is an unbiased estimator of expected value, so from a theoretical perspective, it is a meaningful way to describe the distribution of values with a single number. However, in practice, the average may be somewhat misleading, especially when dealing with remuneration.

Even if we compare employees that have very similar scope of responsibilities and hold positions in firms which are direct competitors, the financial compensation may vary drastically from one case to another. Quite often, such a population will include a few individuals whose remuneration is substantially higher than that of the rest of the group. Such incumbents would be the outliers that drive the average value for the population upwards. The average considers all remuneration values in the population, but it may still be considerably higher than the financial compensation of most of the employees. This undermines the ability of the mean to represent the level of remuneration in the market. Therefore, it is common practice to use other, more robust indicators to aggregate remuneration data in a meaningful way.

Median and percentiles: analysing data distribution

The median is the most common measure used when evaluating remuneration levels in a market. While the mean requires an arithmetic operation involving all values in the sample, the median is rather defined by how the values in the sample are distributed across its range. The median value of remuneration in a population is basically such a value that half of the population is paid lower than the median and the other half is paid higher.

The median provides meaningful insight into the distribution of the values and it is more robust to outliers than the mean. This makes it one of the most important measures utilized in our surveys. Nonetheless, a single value can only say so much about a large dataset, so to provide an extensive overview of the market distribution of various remuneration components, the entire percentile range alongside the median (50th percentile) is presented in our surveys. This is especially helpful if your firm is interested in paying employees above or below the market, which means that the target market percentile (TMP) is not the median but a different point within the range. Vencon Research surveys provide all the data and tools necessary for benchmarking against any target - allowing you to select market target percentiles ranging from the lowest 5th to the highest 95th.

Our surveys also display distribution in the form of boxplot visualizations, charts that focus on five data points in the population: minimum, 25th percentile, median, 75th percentile, maximum.

Such visual aid gives a quick understanding of how the distribution is shaped which can become a valuable insight about the market.

Midpoint: a range-focused indicator

The midpoint (also known as the mid-range) is an arithmetic mean of the maximum and the minimum values in the population.

Even though it seems to be a poor measure of the remuneration level in the market, since it is very much not robust to outliers, the midpoint value is a range-focused indicator that can tell you how much the values of remuneration are dispersed in the market.

Compa-ratio: a key benchmark for salary comparison

One of the most useful metrics utilized in compensation benchmarking is the compa-ratio. The compa-ratio is calculated as your firm’s pay level divided by the market pay level. The selected measure of pay level can vary: mean, midpoint, median, or any other percentile can be used. Nonetheless, it is most common to calculate compa-ratio based on medians. In this case, a compa-ratio value of 0.85 or 85% indicates that the level of remuneration at your firm is 15% below the market level, while a compa-ratio of 1.1 would mean that your employees are paid 10% more than in the market. The comparative ratio assesses how competitive the remuneration at your firm is and gives a specific quantitative estimate of how far your current pay level is from your target in relative terms.

Our reports include the compa-ratio in interactive tool format, allowing you to select the target market percentile with which to compare your firm’s compensation. This allows you to quickly interpret the difference between your firm and the market pay rate at any level or sub-level, across while targeting any point on the entire percentile range.

Actionable statistics for accurate and goal-oriented benchmarking

In our comprehensive compensation benchmarking surveys, Vencon Research utilizes these statistical measures to deliver precise and insightful analyses. By comparing your firm’s pay levels with market data, you can determine how competitive your compensation packages are. At Vencon Research, we are dedicated to providing our clients with the tools and insights needed to make informed decisions about employee compensation. Our meticulous approach ensures that you have the most accurate and actionable data at your fingertips, helping you maintain a competitive edge in the market.

To find out more about our surveys and our benchmarking methodology do not hesitate to get in touch. Our team is always ready to provide personalized assistance to meet your specific needs.

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