What type of analysis should the compensation team use to combine job evaluation and market data effectively?

The most effective type of analysis for combining job evaluation and market data is a Pearson's correlation analysis. This statistical method is used to assess the strength and direction of the relationship between two continuous variables. In the context of compensation, it allows the team to explore how well job evaluation scores correlate with market compensation rates.

By determining this relationship, the compensation team can effectively align organizational pay structures with external market trends, ensuring that the pay offered for specific job roles is competitive and justified based on the evaluation criteria established internally. A strong correlation could indicate that the job evaluation process is accurately reflecting the market value of the positions, which is critical for maintaining fairness and equity in compensation practices.

In this case, using Pearson's correlation can provide valuable insights into whether adjustments in salaries based on job evaluations are consistent with what the market dictates, thus informing compensation strategy decisions.