How does the Paylab.ro website work?

Paylab.ro is an online salary survey, which offers a salary comparison for employees on more than 600 job positions. The list of positions reflects the job market in Romania and it is being constantly updated based on information from users.

This salary survey was created in the year 2007. The author of the methodology of acquiring, collecting and processing the data in the survey and their evaluating is the company Profesia, spol. s r.o. The same method of collecting data through salary portals has also been launched in the Czech Republic (Platy.cz) and in Hungary (Fizetesek.hu), as well as in other 15 more countries and on the international portal Paylab.com.

The target group of the portal are people on the job market, who want to compare their salaries and companies that care for fair salaries of their employees.

1. Input data

People on the job market have the possibility to get a comparison of their salaries with other employees in the same position and in the same region. Everyone who states in the questionnaire that he/she has been working on the selected position for at least some time becomes a respondent and will get a salary comparison with the average of the reference sample for free. The sample is created by other respondents according to the filled in position and region. If the respondent states that he has not been working on the selected position, he is not a respondent.

Each respondent's data are valid for one year, and there is no interference with the entered information whatsoever. All data in the salary survey are anonymous. The procedure of collecting and processing the data respects fully the directive GDPR on personal data processing.

Study on salaries from Romania collects data in net, and the respondents are asked to enter their salaries with regard to a full workload. Therefore, the survey doesn't contain any bonuses for self-employed or other forms of a work load.

2. Output data

Before the actual calculations, the data sample is being "cleansed". As the first ones extreme values are filtered away, such as for example a salary of 100 RON/month or 10 Million RON/month. The second step of the database cleansing is detecting duplicate questionnaires and extremes. Extremes are defined specifically for individual positions with regard to the region (region of the capital city, outside of the capital city region). The methodology of extreme data detection (cutting off data) is based on a rough estimate of the parameters of theoretical salary distribution on the position according to the region.

The salary data from questionnaires who have gone through the process of cleansing, enter into the dataset for the Regression Model.

3. Regression Model

The salary survey calculates total and basic salaries through quantitative regression. It takes into account the links between positions, regions, company sizes, education, practice, and age. This proven method makes it possible to estimate the salary even with a low number of respondents in the desired sample.

The regression model calculates salary values on the position level, as long as there are at least 10 respondents in the dataset for it. By default, the number of respondents on a position over the last 12 months is surveyed, but if lower, account is also taken of the data over the last 24, or as the case may be 36 months.

Outputs resulting from the regressive model distinguish these levels of company size:

  • small (up to 50 employees)
  • middle (51 - 249 employees)
  • large (250 and more employees)

For levels of education we distinguish:

  • lower than high school graduation, where also respondents with the finished middle school or training school are included
  • high school graduation, where there are also included employers with post-high-school training education
  • university education, here belong employers with all levels of university education

Work experience in the regressive model has three levels:

  • junior (up to 2 years of work experience)
  • middle (3 - 5 years of work experience)
  • senior (more than 6 years of work experience)

4. In which cases it is not possible to display the results

In spite of applying the Regressive Model, it can happen that it is not possible to display information about the salary in a specific position. It happens in situations, where there are too few respondents, and therefore the regressive model evaluates the salary estimate as unreliable.

When comparing the salary in such cases the user is offered a document, in which we give him advice and clues on how to negotiate about the salary. The user has the option to request sending a salary comparison automatically when it is possible to estimate the salary. The only thing he has to do is entering his email address to which we will send him a link for the salary comparison.

5. Outputs for people

Basic information from the survey Paylab.ro is the national average salary on the position. After filling in the questionnaire for salary comparison the user gets to a free of charge salary comparison - may it be the expected one or the real one. The outputs are displayed directly on the website.

Every visitor has the option to purchase a more detailed paid version of the output, the so-called Standard Report, that brings a more detailed salary comparison based on the median and quartiles. Moreover, this output provides an overview of salaries according to work experience and education, it shows relative providing of nonfinancial benefits on the specific position with regard to the region. The information about nonfinancial benefits will be displayed with at least 10 respondents over the last 12 months in the selected sample.

A part of the paid version of outputs for people is also advice and clues on how to negotiate about the salary, preparation for the SWOT analysis of the employee etc. The whole Standard report contains more than 20 pages and it is suitable for those who are getting ready for a job interview or a meeting with the manager, where salaries also will be negotiated.

Users can purchase the paid report through an SMS payment with all three mobile operators functioning in Romania, via credit card through a payment in the PayPal system.

The purchased personal salary analysis is sent via email to the visitor's email address entered when ordering.

6. Salary Report Pro - Outputs for Companies 

The Salary Report Pro is designed especially for companies. It can be purchased online after entering basic data on the requested information. The Report takes into account not only the position and region, but also requirements for work experience and company size. The Professional Report summarizes the basic overview of remuneration on the selected position, but unlike Salary Report Plus, it also takes other selected parameters into account. The outputs show the basic and total salary. Beside the average value, it is possible to see the salary distribution expressed in basic percentiles:

  • 1. decile - 10% of employees earn less than the given value
  • 1. quartile - 25% of employees earn less than the given value
  • median - half of the employees earn less/more than the given value
  • 3. quartile - 25% of employees earn more than the given value
  • 9. decile - 10% of employees earn more than the given value

The situation on the job market can be visualized also in the chart of respondents' distribution into pay bands. This chart will show, what percentage of employees can be found in one of the 10 pay bands for the selected sample.

Salary Report Pro further contains basic percentiles of the total salary according to individual indicators (always with regard to the other entered criteria):

  • according to work experience,
  • according to education,
  • according to regions
  • according to the company size
  • according to age

and this always with regard to the other entered criteria.

All mentioned above information in the Professional Report result from the Regression Model. With the help of standard statistics based on respondents' data, we can calculate the share of respondents who dispose of the given nonfinancial benefits. This can be displayed, if there are at least 10 respondents in the sample.

In the same way, it can be evaluated, what share of respondents get the given salary component: variable salary component, the 13th salary, annual rewards and what is the median amount of these salary components like. These values can be displayed, if there are at least 5 respondents in the sample that takes into account the selected position, region, work experience, education, and company size.

Salary Report Pro can be purchased online through Paypal. In such a case, a PDF output with the report is sent automatically to the email address entered in the order. If the client requests purchasing the given report with an invoice, the whole process of exporting the report and sending the invoice can take up to two working days.

7. Salary Tool – an Interface for Companies 

Corporate clients also have the option of purchasing various service packages under the name Salary Tool. Purchasing access to the tool gives the client access to an online interface, in which they are able to find salary data by using two functions:

a) Salary comparison

b) Salary detection

The outputs in both modules are the same as in Salary Report Pro. However, when comparing the salary, the system recommends how to modify salaries of individual employees. Outputs can be saved to allow further work with them, or they can be exported as PDF files. To purchase your access to the online tool, please contact [email protected]

8. Custom analysis for companies

The Salary Survey Paylab.ro enables exporting data on the basis of different criteria, which is often used for the needs of the media. The collected data and the flexibility of the system offer the possibility of providing companies with different also non-standard analysis tailored for the company. To get information about such an analysis, please contact [email protected]

High traffic on Paylab.ro and our data collection methodology are also used to analyze the market research for various topics with the possibility of targeting on specific target groups. Employers have the opportunity to look at their business through the eyes of other people, thus obtaining valuable information essential for strategic decisions in a short period of time. To get more information, please visit Paylab Data Research.