Outcomes of our labor market analysis are comparison of an organization’s wage schedule with competitive market levels, assessment of labor trends, measurement of labor shortages and surpluses, and assessment of the impact of changes in compensation. HR turnover, labor quality, and labor mobility are current significant issues which concern employers. Our HR market analysis assists employers and HR managers in setting compensation and other HR-related policies, and to plan for the future with these issues in mind. Our HR market analysis is also used to determine wage costs and labor market availability in alternative geographic locations for firms considering relocating or expanding their operation.
LeadFirst Analytics applies econometric, statistical, and other quantitative methods to analyze data on wage compensation and labor availability. We have developed an extensive in-house databank for this analysis, drawing on data from a diverse array of sources, including Bureau of Labor Statistics wage surveys, the Census Bureau’s annual Current Population Survey, academic sources, and trade associations. In our research, we have found the data from almost any source to have a fair degree of sampling variation, and therefore, it is often useful to review data from at least two sources.
LeadFirst analyzes worker compensation as it relates to the individual’s years of work experience, the individual’s education, the institutional job setting, occupation, geographic location, and other factors. By controlling for differences in worker qualifications or characteristics, wage comparisons across individuals and work institutions can be made. Our perspective on matching worker attributes is to determine if a worker with certain qualifications and experience could achieve similar levels of earnings with different employers even if the jobs are not closely similar.
LeadFirst also analyzes the demand and supply of labor markets and their interaction with each other, particularly for certain occupations such as engineers or computer scientists and/or programmers. Econometric analysis is used to analyze the relationships between the quantity or availability of labor and several causal factors, such as wages, demographic factors, industry output, college enrollments, and working conditions. Our forecasting strategy uses factors previous research has shown to affect future changes in the labor market which we are forecasting.