Mean wage is an employee's average salary in the given period of time, and it is often used as a benchmark for salary surveys. In order to retain the critical talent, the mean salary of the competitor is considered to estimate the right amount offered to the employee and stay at par in the competition. The formula to calculate the Mean wage is: (a+b+c )/n
Let’s understand it better with the help of an example:
Mean wages are the average of the total salaries given to employees. In comparison, the median is the middle most value of all the wages. For example, seven salaries of different employees are arranged in ascending order. The middle-value fourth salary is known as the median.
Companies have to analyze the salaries and the pay frequencies that have to be provided to employees as per the industry standards. Mean wages help the human resource management to estimate budgets for the vacant position and even provides clarity to job seekers regarding the remuneration. Organizations can offer fair pay to candidates based on the calculations.
Yes, mean wages differ from country to country. As wages and salaries are affected by the region, its economies, standard of living, and many external factors. For example, the Indian mean salary of an engineer can be different from that in America.
Let your HR and workforce focus on most important business decisions while factoHR can reduce the burden of daily activities of the organization.