Description:
<jats:p> Both employers and employees stand to gain from widespread availability of market compensation data. Access to such data makes employees receptive to messages about how pay is set. In the new, informed negotiation, the parties together can agree to a price for the “space,” then arrive at an appropriate salary range for the “face,” the person who fills the position. When the veil is lifted from market salary information, the data are treated as facts and the discussions focus on how the facts apply to the specific people and organizational circumstances. In the stock market, traders know the current market price but negotiate buys and sells based on underlying equity and expected future value. The same is now true in the human capital market. Employers who recognize this new negotiation as an opportunity to create a win-win situation will enhance retention and pull ahead of other employers in the competition for human capital. </jats:p>