• Aug 18th 2013, 10:09 PM
sarathpillai
Hi,

In my company there are 15000 employees currently out of which 3000 are engineers with different years of experience.
Over the last 10 years the company has approximately 40000 employees out of which there are around 6000 engineers who joined and then resigned during this period.

My present HRMS application has unique entry for all these 40000 employees along with their salary details.
The salary details of the 3000 engineers are also included here. However their salary range is not fixed. It varies on their experience, trade, soft skills etc.
Over the 10 years the monthly salary range for engineers vary from $8000 -$ 40000. The salary range for them in last 5 years is between $27000 -$ 40000

I am designing a new Recruitment application that needs to have the average salary for each job title.

So here's the confusion. If I need to know the current average salary of engineers, what will be the most accurate logic? A direct average salary of the 3000 engineers will not help due to the high variation. (Angry)

• Aug 18th 2013, 10:50 PM
chiro
Hey sarathpillai.

Do you have any data you can use to get a distribution of the relevant engineers?

If you have a bunch of data for all engineers then you can use a subset of that data (also known in statistics as a conditional random variable) and then either calculate the median or the mean of that distribution.

Alternatively if you want an interval, then you can get a confidence interval (typically 95% is used) and report that.

In terms of the tools to calculate things like this, you can use anything from Excel to statistical packages like R or SAS.
• Aug 19th 2013, 03:50 AM
sarathpillai
Thanks Chiro,

Can you please enlighten me with a simple example?
• Aug 19th 2013, 08:16 AM
Shakarri
How do their salaries vary over time? For example do they increase by $3800 every year for 5 years then increase by$2600 every year for the next 5 years?
Do you have access to the individual 3000 present salaries? If so it would help to calculate the sample variance with the formula

$\displaystyle \sum_{i=1}^{3000}\frac{(x_i-\bar{x})^2}{2999}$
Where (x1,x2,x3, ... xi, ... ,x3000) are the 3000 salaries and $\displaystyle \bar{x}$ is the sample average salary.
• Aug 19th 2013, 11:05 AM
ebaines