Compensation Choice Modeling™

Applied Marketing Research has developed a technique to model employee preference for compensation benefits. We have many years of experience at modeling consumer preference for various attributes of products and individual products against an array of like products.

Recently we were approached by a human resources consultant to produce a model that provides a rank of utilities or preferences for an array of employee benefits. The model produces two key findings:

1. Employee preference for various benefits
2. An intensity of preference scaling (for example, one benefit may have twice the preference intensity of a different benefit).

How can this be useful? Simply put, our modeling process can provide you with the necessary data to choose between those benefits that are “must have” and those that are “nice to have.” At this time, it is important that benefits be both efficient and effective. Ultimately our model can help you choose between benefits based on those two factors.

Another possibility is to look at preference scores between type of employee (labor and management or front-line vs. back office). Preferences can be modeled for any number of meaningful employee segments and then those differences can be evaluated to determine if efficiencies can be achieve or effectiveness can be improved.

Lastly, we can provide your team with a “what if” tool, that would allow you to modify the benefits to see what happens to employee preference under different scenarios.

For more information on our CCM™, call us at 1.800.381.5599.