How Paylab.com works?

The methodology of salary survey.

Paylab.com is a website, on which it is possible to get a salary comparison for more than 800 job positions. The list of positions is being constantly updated.

This salary survey was created in the year 2007 in Slovakia. The author of the methodology of acquiring, collecting and processing the data in the survey and their evaluating is the company Profesia, spol. s r.o. The same method of collecting data through salary portals has also been launched in the Czech Republic (Platy.cz) and in Hungary (Fizetesek.hu), as well as in other 16 more countries and on the international portal Paylab.com.

The target group of the portal are people on the job market, who want to compare their salaries, and companies that care for fair salaries of their employees.

1. Input data

People on the job market have the possibility to get a comparison of their salaries with other employees on the same position and in the same region. Everone who states in the questionnaire that he/she has been working on the selected position for at least some time, becomes a respondent and will get a salary comparison with the average of the reference sample for free. The sample is created by other respondents according to the filled in position and region. If the respondent states that he has not been working on the selected position, he is not a respondent.

Each respondent's data are valid for one year, and there is no interference with the entered information whatsoever. All data in the salary survey are anonymous. The procedure of collecting and processing the data respects fully the directive GDPR on personal data processing.

The salary survey collects data in gross, and the respondents are asked to enter their salaries with regard to a full work load. Therefore, the survey doesn't contain any bonuses for self-employed or other forms of a work load.

2. Output data

Before the actual calculations the data sample is being "cleansed". As the first ones extreme values are filtered away, such as for example a salary of 10 EUR/month or 10 Million EUR/month. The second step of the database cleansing is detecting duplicite questionnaires and extremes. Extremes are defined specifically for individual positions with regard to the region (region of the capital city, outside of the capital city region). The methodology of extreme data detection (cutting off data) is based on a rough estimate of the parameters of theoretical salary distribution on the position according to the region.

The salary data from questionnaires who have gone through the process of cleansing, enter into the dataset for the Regression Model.

3. Regression Model

The salary survey calculates total and basic salaries through quantitative regression. It takes into account the links between positions, regions, company sizes, education, practice and age. This proven method makes it possible to estimate the salary even with a low number of respondents in the desired sample.

The regression model calculates salary values on the position level, as long as there are at least 10 respondents in the dataset for it. By default, the number of respondents on a position over the last 12 months is surveyed, but if lower, account is also taken of the data over the last 24, or as the case may be 36 months.

Outputs resulting from the regressive model distinguish these levels of company size:

  • small (up to 50 employees)
  • middle (51 - 249 employees)
  • large (250 and more employees)

For levels of education we distinguish:

  • lower than high school graduation, where also respondents with the finished middle school or training school are included
  • high school graduation, where there are also included employees with post-high-school training education
  • university education, here belong employees with all levels of university education

Work experience in the regressive model has three levels:

  • junior (up to 2 years of work experience)
  • middle (3 - 5 years of work experience)
  • senior (more than 6 years of work experience)

4. In which cases it is not possible to display the results

In spite of applying the Regressive Model, it can happen that it is not possible to display the information about the salary on a specific position. It happens in situations, where there are too few respondents, and therefore the regressive model evaluates the salary estimate as unreliable.

When comparing the salary in such cases the user is offered a document, in which we give him advice and clues how to negotiate about the salary. The user has the option to request sending a salary comparison automatically, when it is possible to estimate the salary. The only thing he has to do is entering his email address to which we will send him a link for the salary comparison.

5. Outputs for people

Basic information from the survey Paylab.com is the national average salary on the position. After filling in the questionnaire for salary comparison the user gets to a free of charge salary comparison - may it be the expected one or the real one. The outputs are displayed directly on the website.

When it is possible and there are enogh data, visitor has the option to purchase a more detailed paid version of the output, the so called Plus Report, that brings a more detailed salary comparison based on the median and quartiles. Moreover, this output provides an overview of salaries according to work experience and education, it shows relative providing of nonfinanical benefits on the specific position with regard to the region. The information about nonfinancial benefits will be displayed with at least 10 respondents over the last 12 months in the selected sample.

A part of the paid version of outputs for people is also advice and clues how to negotiate about the salary, preparation for the SWOT analysis of the employee etc. The whole Plus report contains more than 20 pages and it is suitable for those who are getting ready for a job interview or a meeting with the manager, where salaries also will be negotiated.

Users can purchase the paid report through in the PayPal system.

The purchased personal salary analysis is sent via email to the visitor's email address entered when ordering.

6. Outputs for companies (available only on localized portals)

In particular, corporate clients are assigned the Professional Report, which can be purchased online after entering basic data of the requested information. The Professional Report takes into account not only position and region, but also requirements for work experience and company size. The Professional Report summarizes the basic overview of rewarding on the selected position, but unlike the Standard Report, also with regard to other selected parameters. The outputs show the basic and the total salary, besides the average value it is possible to see the salary distribution by expressing the basic percentiles:

1. decile - 10% employees earn less than the given value
1. quartile - 25% employees earn less than the given value
median - half of the employees earn less/more than the given value
3. quartile - 25% employees earn more than the given value
9. decile - 10% employees earn more than the given value

The situation on the job market can be visualized also in the chart of respondents' distribution into pay bands. This chart will show, what percentage of employees can be found in one of the 10 pay bands for the selected sample.

The Pro Report contains also basic percentiles of the total salary according to individual indicators:

  • according to work experience,
  • according to education,
  • according to regions
  • according to the company size
  • according to age

and this always with regard to the other entered criteria.

All mentioned above information in the Professional Report result from the Regression Model. With the help of standard statistics based on respondents' data we can calculate the share of respondents who dispose of the given nonfinancial benefits. This can be displayed, if there are at least 10 respondents in the sample.

In the same way it can be evaluated, what share of respondents get the given salary component: variable salary component, the 13th salary, annual rewards and what is the median amount of these salary components like. These values can be displayed, if there are at least 5 respondents in the sample that takes into account the selected position, region, work experience, education and company size.

The Professional Report can be purchased online through CardPay or Paypal. In such case a PDF output with the report is sent automatically to the email address entered in the order. If the client requests purchasing the given report with an invoice, the whole process of exporting the report and sending the invoice can take up to two working days.

7. Online tool for companies (available only on localized portals)

Corporate clients have the option to purchase also packages under the name Salary tool. Clients with this service can search salary data for all positions included into the survey and with the access for one year. By purchasing of this service the client gets access to the online tool, in which he can look up salary data by using two features: 

a) Salary comparison 
b) Salary detection 

The outputs in both types are the same as in the Salary Report Pro. However, when comparing the salary the system recommends, how to modify salaries of individual employees. 

The outputs can be saved for further work with them, or they can be exported into PDF files. 

To purchase the access to the online tool, please contact [email protected]