MILL VALLEY, CALIF. (October 18, 2016) – For employees who have ever wondered if they are being paid fairly, Glassdoor has launched a new, free tool that uses patent-pending technology to calculate one’s real-time worth in today’s job market. Know Your Worth by Glassdoor, currently in beta, is designed to not only help people determine if they are being paid fairly, but also whether they should attempt to negotiate their current salaries and/or explore better paying jobs.
Know Your Worth uses sophisticated data science and machine learning algorithms that leverage millions of salary reports shared by employees on Glassdoor, while analyzing real-time supply and demand trends in local job markets, and typical career transitions of people doing similar work. Each person’s market value, and pay range, is unique to the individual, private, and will be recalculated weekly and tracked over time.
To use Know Your Worth, an individual simply needs to enter a few basic details, including their current job title, employer, current salary, location and years of relevant work experience. When enough relevant data exists, Glassdoor uses its proprietary Know Your Worth algorithm to instantly calculate the individual’s personalized market value – an estimated median of base pay he or she could earn in their local job market, right now. To make it easy to monitor over time, Glassdoor plots each individual’s 12-month market value on a chart, and compares it to the median base pay of similar workers in their local market.
“Despite the increase in workplace transparency since Glassdoor launched in 2008, it’s still incredibly hard to know if you’re being paid fairly as company pay practices are still largely opaque and talking about pay remains taboo,” said Robert Hohman, Glassdoor co-founder and CEO. “We believe knowledge is power and we’ve built Know Your Worth to help people better understand their earnings potential and worth in the ever-changing job market. Glassdoor is uniquely positioned to deliver Know Your Worth with our significant salary database, our real-time pulse on millions of job openings, and insights into probable career transitions for employees. Know Your Worth is the latest Glassdoor innovation that delivers on our mission to help people everywhere find a job and company they love.”
The current and personalized market value delivered by Know Your Worth is incredibly important in today’s job market, as nearly two in three (65 percent) U.S. employees say they wish they had a better understanding of what fair market compensation is for their position at their company within their local job market.¹
“Employees around the world are constantly trying to understand their earnings potential, competitiveness, and level of pay relative to peers,” said Josh Bersin, principal and founder, Bersin by Deloitte, Deloitte Consulting LLP. “Tools that enable salary transparency and use analytics can give employees amazing new insights into earnings potential, point out inconsistencies, and give employers new signals on their compensation programs to attract great people.”
In the initial beta, Glassdoor expects it will be able to calculate an estimated market value for the majority (~55 to 60 percent) of the U.S. workforce. When calculating a market value is not possible, users will receive an alert when a calculation is possible and until then, will be able to use another new feature called Salary Explorer. This allows people to explore how a wide variety of factors can influence pay for different types of jobs in the current market. For example, Salary Explorer can reveal what a few more years of experience could yield in one’s current field, highlight what a move to New York City or Portland might mean to one’s paycheck, or find out what a career change could deliver.
A Know Your Worth estimated market value is designed to be a starting point for candidates and employees. Glassdoor does not currently factor other types of compensation or benefits into an individual’s market value. Glassdoor acknowledges these other factors are often considered as part of a company’s overall compensation and rewards program that can significantly influence base pay. Glassdoor expects to add additional variables to the Know Your Worth model over time. The Know Your Worth model currently predicts the market value of users within an approximate 12 percent median margin of error rate². As Glassdoor collects more salary and other data, the Know Your Worth machine learning algorithm will become smarter and the company expects the accuracy and reach of market values will improve in the months and years ahead.
For Employees and Job Seekers: What Now?
A personal market value reveals the estimated base pay the person should expect to earn in today’s job market. If an employee finds their market value is higher than what they are currently making, they may decide to negotiate their pay and discuss opportunities for advancement at their current employer, explore other job opportunities, and/or remain where they are for the time being. Glassdoor has developed an Employee’s Guide to Know Your Worth to better understand their estimated market value and put the information to work.
For Employers: Preparing for Questions and Conversations
For employers, Know Your Worth market values can be another important data point when reviewing internal compensation practices. It is very likely employees and candidates will have questions about how their market values are recognized in the company’s overall compensation programs. Being clear about a company’s total compensation and rewards program and how base pay is factored in will be helpful in shaping these discussions. An Employer’s Guide to Know Your Worth, with input of human resource executives at Glassdoor and other employers, is available to understand the product and answer questions.
KNOW YOUR WORTH RESOURCES:
Read more from Glassdoor’s Chief Human Resources Officer on Know Your Worth
IMAGES + VIDEO + SALARY RESEARCH: Images of Know Your Worth are available upon request. A brief video is available to view, download and/or embed. Glassdoor has also conducted extensive research on the topic of salary transparency, gender pay gap and general compensation. For more, please contact firstname.lastname@example.org.
¹ Data is based on a survey conducted online within the United States by Harris Poll on behalf of Glassdoor from August 31 – September 2, 2016 among 1,038 adults ages 18+ who are employed FT/PT. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.
² Learn more about the Know Your Worth methodology, please visit https://www.glassdoor.com/knowyourworth/about.htm
Glassdoor is the world’s most transparent jobs and recruiting marketplace that is changing how people search for jobs and how companies recruit top talent. Glassdoor combines job listings with anonymous reviews, ratings and salary data to help people find a job and company they love. This level of transparency, in turn, helps employers attract the right candidates for their company and culture at a fraction of the cost of other channels. Glassdoor offers employers job advertising, job posting and employer branding solutions in addition to robust talent analytics. Launched in 2008, Glassdoor has job listings and data for more than 600,000 employers in 190 countries and is available on iOS and Android platforms. For labor market trends and analysis, visit Glassdoor Economic Research. For career advice and job-related news and tips, visit the Glassdoor Blog.
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