Frequently Asked Questions
How does a compensation study benefit my company?
Why Participate?
Why do I need to know what other companies are paying?
Not all of my job titles match those in your reports. Can I still use them?
We have a collective bargaining agreement; can the reports still be useful to me?
Which report is best for me?
What is benchmarking? How do you use Cerno reports to do it? Why do it?
I consider my company to be small. Why would I use the reports?
Do Distribution companies fit in your manufacturing or trucking operations reports?
How do Cerno reports differ from association reports or consulting firm reports?
What is involved in a custom study?
Can I see a list of participants?
How does a compensation study benefit my company?
- The primary use of a compensation report is to facilitate comparison of your company’s compensation practices to the rest of the industry (by area, sub-industry, company size, ownership status, or union status). Within each job title we report you will be able to compare your employee’s wage to a complete percentile range (graph and 10th, 25th, 50th, 75th, 90th, high, low and average) being paid in the industry. Job titles
- You’ll also be able to measure your employment policy and benefit plan “normalcy”. What percentage of companies provide dental plans for hourly employees? What are the details of the plan? What is a normal turnover rate within the industry? Employment policies and Benefits.
- And yet, the greatest value our reports provide is as a communication tool. Even if our reports confirm something a manager felt they already knew about the industry, they now have that fact in black and white, presented by a third party - a perfect tool to help employees understand they are receiving fair compensation.
- Many employees learn what they feel they should be paid through rumour or questionable data sources. That is why Cerno Research remains focused on our mission of converting rumour into fact.
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Why Participate?
- Cerno publishes data by region, industry, and company size where ever possible. Each participant is like a "vote" for a particular type of report. If we receive enough response in Winnipeg, for example, we will release a set of Winnipeg reports.
- Each participant receives a significant discount when purchasing the results.
- Knowing that your data is within the results you are looking at makes benchmarking that much more meaningful.
- The first year of full participation can be followed by up to 3 years of update participation, a significantly shorter process. The updates qualify companies for the same discount as full surveys.
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Why do I need to know what other companies are paying?
- The Canadian employment marketplace has never been more competitive. Employees no longer expect to stay with one employer for a lifetime. The effect of this shift in employee expectation has created a community of employees in search of the best possible place to work. Part of that quality is employment policy, benefits, and wages; all factors tracked by Cerno.
- It is easy in day-to-day operations to believe that your company is so unique that neighbouring companies aren't competing with you directly. But the vast majority of the Canadian workforce is highly transferable. Meaning, if your Controller is working for your highly specialized hydro-forming plant, it does not stop him or her from leaving your workplace to join a bank. Cerno's reports help find data for your niche market and get a broader idea of the competitive forces in play to help you to attract and retain the best employees.
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Not all of my job titles match those in your reports. Can I still use them?
- Yes, when using Cerno reports pay careful attention to job descriptions, as job titles vary widely across the country. You will probably find that more job descriptions match your workforce than job titles.
- Some employees will work across more than one job description. You can create composite positions by combining data from more than one Cerno job description.
- You can effectively benchmark your entire workforce by matching as little as 30% of your job descriptions to a Cerno report.
- Remember that unusual job descriptions can create job-matching problems for your company. If you create an unusual job your company may have trouble replacing the employee should turnover occur. Also, the employee may feel trapped by a position that is unrecognized in the Canadian industry.
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We have a collective bargaining agreement; can the reports still be useful to me?
- Yes. We have "Collective Bargaining Agreement Company" reports for hourly employees.
- Our reports can be a useful tool during contract negotiations. If you feel you are pulling too far ahead of the competition our reports may help you prove it.
- Don't forget that we also have Salaried, Middle Management, and Executive data.
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Which report is best for me?
- Cerno currently has reports for the manufacturing industry, trucking operations, and a new project introducing cross-industry city studies. Ask yourself which industry you think you compete in and that will complete the first step in choosing the right report for your company.Please speak to a Cerno representative for more details.
- Cerno produces hundreds of reports based on industry, company size, and region. Paper-bound reports are sold with one criteria set only. For example, you could choose between an Alberta set of reports, and the Calgary set. If you are interested in multiple pre-customized reports look into one of our CD-ROM products. Please speak to a Cerno representative for more details.
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What is benchmarking? How do you use Cerno reports to do it? Why do it?
- Benchmarking refers to the practice of using our report to accurately "mark" your company's ability to compete for an employee in comparison to other companies. Comparing your employee's wage to a much larger sample of wages allows you to make this comparison.
- Cerno represents large samples of data by printing the precise number for the 10th, 25th, 50th, 75th, 90th percentiles, along with the high, low, and average. We also provide graphical representation for all responses.
- It is a common error to think that benchmarking is only necessary to play "catch up" if you feel you are falling behind in the employment marketplace and can afford to pay more. But benchmarking provides any company with very important knowledge: it tells you where you currently stand. Armed with that information you can anticipate the challenges that will face your ability to attract and retain the best employees.
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I consider my company to be small. Why would I use the reports?
- Even a small or medium sized company will find that payroll is one of their higher costs. Consider giving a raise to a workforce of 40 non-executive employees making an average of $23,000 each, which represents a payroll of $1.15 million. A raise of 40 cents an hour for those 40 employees will cost $33,280 annually, a five-year plan cost of $166,400.
- Costs related to benefits, training, and absenteeism, and the intangible multiplier of turnover cost (Managers assigned to turnover, training, new employee learning curve, etc.) can add a hidden price tag to any size of workforce.
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Do Distribution companies fit in your manufacturing or trucking operations reports?
- That depends on where you would like to compete. Some distribution facilities feel that their closer ties to the manufacturing industry creates awareness and competition within their workforce. Others prefer to compete with the trucking operations that pick up product from their facilities. Distribution companies are among the participants in both types of reports.
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How do Cerno reports differ from association reports or consulting firm reports?
- Many association papers are produced on a not for profit basis as a member service. These reports are a wonderful grass-roots type of support. However, Cerno provides unbiased third party reports with a level of detail that no not for profit service can provide. When making important decisions regarding your competitiveness we strongly suggest including our level of detail and high response rates.
- Canadian consulting firms like to provide wage research as a tool to introduce their other services to your company. Some of these companies produce high quality national reports including data from many differing industries. However, Cerno's only line of business is to produce accurate, useful research. Cerno provides unbiased third party reports that cover specific industry types and are broken into pre-customized types by region, industry, and company size.
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What is involved in a custom study?
- There are limitations to general reports. Often companies find themselves facing expensive human resources decisions without the research resources necessary. Cerno provides a custom study service that allows companies to gather essential data using our already existing network of human resources contacts.
- Cerno can produce custom studies on any issue that is "survey-able". Issues covered in the past include compensation, employee satisfaction, plant relocation, and marketing research.
Our confidentiality agreement strictly applies to custom studies.
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Can I see a list of participants?
- No. Cerno does not release the names of its participants as part of our confidentiality agreement with our participants.
- The confidentiality agreement allows Cerno to collect data from private companies that would otherwise never feel comfortable responding to a survey. Collecting sufficient private company response creates reports that truly reflect the Canadian employment marketplace, not just a collection of information from large public companies.
- To compensate for not releasing a list of participants Cerno produces over 400 reports for the country, pre-customized by region, industry type, and company size, allowing your company to compare itself to the relevant competition. For example, if you're a large company only wanting to compete with large companies you may want to select a relevant company size sample.
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