The latest tool released on our constantly evolving and improving Radford Network is the Executive Regression tool. Located under the Data section of the network, this tool helps users leverage the entire database, industries, or peers to create an estimate of pay based on the size of their organization. To learn more about Executive Regression please see our article on located here. The tool is only available for job families that are part of the “Executive” module.
To access the tool, click on “Data” on the toolbar, and selects the last tab, “Executive Regression”.
For those users familiar with our Market Queries tool, Executive Regression works in the same manner. Users can either use an existing regression or create a new one.
To create a new Regression, select the “Create New +” button or click on “Create New Regression”.
After clicking "Create New Regression" there will be a popup where you will name your New Regression.
Once the new Regression has been named, select the desired jobs. Like Market Queries, users can choose to either select “All Executive Jobs”, select an existing Job List, or search jobs. When first selecting a job, the tool uses the same Job Tree in Market Queries, but jobs are restricted to just the Executive jobs in the Job Catalog. Like Market Queries, users can select previously created Job Lists by clicking on “Select Job List”.
Unlike Market Queries, the Executive Regression tool does not allow users to select data elements. Instead, users select “Scope”, where they can choose between “Revenue” or “Headcount”:
Most users will want to select “Revenue” as their scope. By doing so, they will base their regression on a company’s overall revenue or business unit revenue for Business Unit roles (e.g., Group President). For plant-level roles (e.g., Plant Manager) “Headcount” would be a more appropriate selection.
Once all those items are selected, users then click on “Add Breakouts”. Note that the tool defaults to the United States, the only country option currently available. Like Market Queries, we recommend users name their breakout, but this is not a requirement. Similar to Market Queries, users can choose from Employee Filters or Company Filters.
The most common filters to use are:
- Industry: Under the Company Filters, users choose what industries they want to include from the Industry drop-down.
- Business Unit level data: If users want to limit the regression to only Executive Organization Level positions at the Group or Division level,, select either Multi-Profit or Group, or Single-Profit or Division. If nothing is selected, the regression will use both.
Here is a breakdown of the different items in this drop-down:
- “Corporate” will filter only on executive roles at a Corporate Headquarters.
- “Multi-Profit” or “Group” allows users to leverage the new roles created within the RGCD for business units that aren’t considered a corporate headquarters position, but are leaders of business units within an organization. For example, if a user wanted to pull data for “Top Finance, Business Unit”, this filter allows users to create an estimate for that level within an organization, matching only to incumbents at the Group level.
- “Plant” is for executives at the plant level
- “Single-Profit or Division” is for executives responsible for just a single profit center or a single division. This pulls just from incumbents matched to the Division level.
A quick comment on usage of company filters. The Executive Regression tool is best used with minimal filters. By limiting how much data is filtered or removed from the analysis, the model can consider more data when generating an estimate of pay. This will result in more a more robust estimate from the tool.
Once all the filters have been selected, users click “Create” and a breakout will be created. If a company has purchased Peer Groups, those can also be selected and added to a breakout. Once all breakouts have been added, a user selects “Save & Run” and the system will generate a Regression. Like other reports, the system will issue a notification when the report is complete, and users can download the spreadsheet from the My Reports page.