Salary surveys are conducted annually in most countries, but employers often need to use survey data at a different time during the year than when the survey was conducted. Employers need to understand how the market is trending going forward when creating budget projections or considering adjustments to salary scales for the upcoming year.
Birches Group Trends™ is designed to provide users with a tool to estimate market movement. These amounts can then be applied as aging factors to survey data, adjusting the survey data to match a target date in the future.
How it works
Trends™ uses historical survey data over several years (typically five or more) to predict future market growth. A best-fit regression is performed, using three different types of regressions. The most reliable result is used to establish the estimate. Separate regressions are performed for support staff and professional staff.
The results indicate how much will the market move in the next few months, or as of a certain date, assuming that the patterns from past years are repeated. While past practice is no guarantee of the future, it is a reliable way to estimate the future movement.
Is Trends™ the same as a salary increase survey?
Trends™ is designed with the same purpose in mind as a salary increase survey – to enable clients to estimate future budgeted increases for pay based on market trends. We have compared the Trends™ data to salary increase surveys from other leading consulting firms, and found there to be very slight differences – within 0.1% in most cases. We prefer our analytic approach, since it does not require a separate collection of data from clients, and is available on demand through our website. It’s easier for clients, easier for us and provides a reliable estimate when needed.
How much does Trends™ cost?
The cost of Trends™ is included in the cost of Indigo™ subscriptions. Refer to the pricing page for more information.