How does the Palgad.ee website work?
Methodology of slary survey Palgad.ee
Palgad.ee is a website, on which it is possible to get a salary comparison for more than 600 job positions. The list of positions reflects the job market in Estonia and it is being constantly updated.
This salary survey was created in the year 2007 under the name Merces.sk in Slovakia. The author of the methodology of acquiring, collecting and processing the data in the survey and their evaluating is the company Profesia, spol. s r.o. The same method of collecting data through salary portals has also been launched in the Czech Republic (Platy.cz) and in Hungary (Fizetesek.hu), as well as in other 13 more countries and on the international portal Paylab.com.
The target group of the portal are people on the job market, who want to compare their salaries, and companies that care for fair salaries of their employees.
1. Input data
People on the job market have the possibility to get a comparison of their salaries with other employees on the same position and in the same region. Everyone who states in the questionnaire that he/she has been working on the selected position for at least some time, becomes a respondent and will get a salary comparison with the average of the reference sample for free. The sample is created by other respondents according to the filled in position and region. If the respondent states that he has not been working on the selected position, he is not a respondent.
Each respondent's data are valid for one year, and there is no interference with the entered information whatsoever. All data in the salary survey are anonymous. The procedure of collecting and processing the data respects fully the directive GDPR on personal data processing.
The Estonian salary survey collects data in net, and the respondents are asked to enter their salaries with regard to a full work load. Therefore, the survey doesn't contain any bonuses for self-employed or other forms of a work load.
2. Output data
Before the actual calculations the data sample is being "cleansed". At first extreme values are filtered out, such as for example a salary of 100 EUR/month or 10 Million EUR/month. The second step of the database cleansing is detecting duplicate questionnaires and extremes. Extremes are defined specifically for individual positions with regard to the region (region of the capital city, outside of the capital city region). The methodology of extreme data detection (cutting off data) is based on a rough estimate of the parameters of theoretical salary distribution on the position according to the region.
The salary data from questionnaires who have gone through the process of cleansing, enter into the dataset for the Regressive Model.
3. Regressive Model
The salary survey calculates total and basic salaries through quantitative regression. It takes into account the links between positions, regions, company sizes, education, practice and age. This proven method makes it possible to estimate the salary even with a low number of respondents in the desired sample.
The regressive model calculates salary values on the position level, as long as there are at least 10 respondents in the dataset for it. By default, the number of respondents on a position over the last 12 months is surveyed, but if lower, account is also taken of the data over the last 24, or as the case may be 36 months.
Outputs resulting from the regressive model distinguish these levels of company size:
- small (up to 50 employees)
- middle (51 - 249 employees)
- large (250 and more employees)
For levels of education we distinguish:
- lower than high school graduation, where also respondents with the finished middle school or training school are included
- high school graduation, where there are also included employers with post-high-school training education
- university education, here belong employers with all levels of university education
Work experience in the regressive model has three levels:
- junior (up to 2 years of work experience)
- middle (3 - 5 years of work experience)
- senior (more than 6 years of work experience)
4. In which cases it is not possible to display the results
In spite of applying the Regressive Model, it can happen that it is not possible to display the information about the salary on a specific position. It happens in situations, where there are too few respondents, and therefore the regressive model evaluates the salary estimate as unreliable.
When comparing the salary in such cases the user is offered a document, in which we give him advice and clues how to negotiate about the salary. The user has the option to request sending a salary comparison automatically, when it is possible to estimate the salary. The only thing he has to do is entering his email address to which we will send him a link for the salary comparison.
5. Outputs for people
Basic information from the survey Palgad.ee is the national average salary on the position. After filling in the questionnaire for salary comparison the user gets to a free of charge salary comparison - may it be the expected one or the real one. The outputs are displayed directly on the website.
Every visitor has the option to purchase a more detailed paid version of the output, the so called Standard Report, that brings a more detailed salary comparison based on the median and quartiles. Moreover, this output provides an overview of salaries according to work experience and education, it shows relative providing of nonfinancial benefits on the specific position with regard to the region. The information about nonfinancial benefits will be displayed with at least 10 respondents over the last 12 months in the selected sample.
A part of the paid version of outputs for people is also advice and clues how to negotiate about the salary, preparation for the SWOT analysis of the employee etc. The whole Standard report contains more than 20 pages and it is suitable for those who are getting ready for a job interview or a meeting with the manager, where salaries also will be negotiated.
Users can purchase the paid report via bank link (Swedbank, SEB etc) or PayPal (manages credit card payments as well).
The purchased personal salary analysis is sent via email to the visitor's email address, entered when ordering.
6. Outputs for companies
In particular, corporate clients are assigned the Professional Report, which can be purchased online after entering basic data of the requested information. The Professional Report takes into account not only position and region, but also requirements for work experience and company size. The Professional Report summarizes the basic overview of rewarding on the selected position, but unlike the Standard Report, also with regard to other selected parameters. The outputs show the basic and the total salary, besides the average value it is possible to see the salary distribution by expressing the basic percentiles:
1. decile - 10% employees earn less than the given value
1. quartile - 25% employees earn less than the given value
median - half of the employees earn less/more than the given value
3. quartile - 25% employees earn more than the given value
9. decile - 10% employees earn more than the given value
The situation on the job market can be visualized also in the chart of respondents' distribution into pay bands. This chart will show, what percentage of employees can be found in one of the 10 pay bands for the selected sample.
The Professional Report contains also basic percentiles of the total salary according to individual indicators:
- according to work experience,
- according to education,
- according to regions
- according to the company size
- according to age
and this is always with regard to the other entered criteria.
All the information mentioned above is in the Professional Report as the result of using the Regressive Model. With the help of standard statistics based on respondents' data we can calculate the share of respondents who dispose of the given nonfinancial benefits. This can be displayed, if there are at least 10 respondents in the sample.
In the same way it can be evaluated, what share of respondents get the given salary component: variable salary component, the 13th salary, annual rewards and what is the median amount of these salary components like. These values can be displayed, if there are at least 5 respondents in the sample that takes into account the selected position, region, work experience, education and company size.
The Professional Report can be purchased online through Bank links (Swedbank, SEB etc) or Paypal (also manages credit card payments). In such case a PDF output with the report is sent automatically to the email address entered in the order. If the client requests purchasing the given report with an invoice, the whole process of exporting the report and sending the invoice can take up to two working days.
7. Online tool for companies
Corporate clients have the option to purchase also different service packages under the name Paylab. According to the prepaid number of positions and the time provided for the work with the tool we distinguish:
- PayLab 1 - 1 position salary survey for 1 month
- PayLab 5 - 5 positions salary survey for 1 month
- PayLab Multi - unlimited use of Palgad.ee database for 1 month
- PayLab Multi year - unlimited use of Palgad.ee database for 1 year
By purchasing one of these services the client gets access to the online tool, in which he can look up salary data by using two modules:
a) Salary comparison
b) Salary detection
The outputs in both modules are the same as in the Professional Report. However, when comparing the salary, the system recommends, how to modify salaries of individual employees.
The outputs can be saved for further work with them, or they can be exported into PDF and XLS files.
To purchase the access to the online tool, please contact [email protected]
8. Custom analysis for companies
The Salary Survey Palgad.ee enables exporting data on the basis of different criteria, which is often used for the needs of the media. The collected data and the flexibility of the system offer the possibility of providing companies with different also non-standard analysis tailored for the company. To get information about such analysis, please contact [email protected]
High traffic on Palgad.ee and our data
collection methodology are also used to analyse the market research for various
topics with the possibility of targeting on specific target groups. Employers have
the opportunity to look at their business through the eyes of other people,
thus obtaining valuable information essential for strategic decisions in a
short period of time. To get more information, please visit Paylab Data