The evolution of compensation data: From surveys to software

"The gaming industry just can’t rely on surveys," one compensation director recently confided.

This sentiment echoes across industries. Survey data is notorious for being an outdated source of compensation intel and an agonizing manual process. Compensation leaders struggle to remain agile in volatile markets, and static survey data in spreadsheets only creates more challenges. 

But what’s exactly happening and why are traditional survey methods crumbling? 

A paradigm shift in compensation is underway. Let’s uncover why traditional surveys are falling short and how software elevates the compensation landscape. 

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The market outpaces survey data

Note the seismic events that have jolted compensation benchmarks in recent years:

Remote work, the Great Resignation, inflation, and the aftermath of tech layoffs.

These four forces reshape compensation and drive the need for greater efficiency, accountability, and precision. 

The tech industry’s 2022 innovations ignited fierce demand for AI and machine learning talent. While the world raced to integrate ChatGPT into their existing software, compensation for AI and machine learning roles jumped:

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Recent data reveals a critical insight: Not all AI roles are created equal. Only some remain in high demand and require premiums. 

But this data and level of nuance can’t be captured by surveys, positioning software to pick up the slack. It’s built to pace the speed of today’s market.

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Surveys cost you talent 

Compensation’s survey-based approach fails because it relies on an antiquated process:

1. Comp teams pull together raw data from internal HR systems
2. Attempt to match jobs and levels (a subjective nightmare)
3. Manually clean and submit the data (sometimes done by an intern, yikes)
4. Hope the data is still relevant by the time it’s received
5. Download needed cuts for range analysis and comp planning

You go through all of this only for the data to be…kind of accurate.

Let's examine a real-world example:

A comp leader at a top 20 software company recently tagged Compa, concerned about a spike in attrition among account executives (AE). They said Radford’s data showed market rates were lower than last year.

Validated, more real-time data shows the median target total cash for IC-level AEs rose from the 2023 total of ~$260-270k, now at $300k in 2024.

This disconnect between survey data and the market costs companies talent and their competitive edge. 

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The shift to a new era of compensation intelligence

Software enters the chat.

In the software-based market data experience, automation and accuracy shine. Survey submissions transform from months-long manual projects into streamlined, tech-driven processes.

Data flows automatically from HCM, ATS, and stock administration systems, replacing self-reported spreadsheets with validated data. Matching gets a multi-source boost, delivering precision not possible with surveys. Finally, data refreshes weekly, not annually, enabling near real-time analysis.

But the shift from surveys to software isn't just about smarter data—it's about transforming relationships and elevating the entire compensation function within your organization. Comp can finally match the beat of what talent acquisition and senior executives hear in the market.

A new paradigm: Built by comp, for comp

Compa is leading the “shift-to-software” movement for progressive compensation leaders.

At the heart of this transformation lies Compa's unique advantage: it’s a compensation tool crafted by a seasoned compensation professional, not an engineer or tech mogul. Compa isn't just creating solutions; it’s addressing pain points experienced firsthand, making us uniquely attuned to the real needs of compensation leaders like you.

Ready to join your peers in building the world’s first real-time compensation intelligence platform? Start here.

The future of compensation leverages real-time data to keep companies at the top of their total rewards game. Don't let outdated surveys hold you back–embrace the shift and get ahead of the market.