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EXERCISE 9
DETERMINING WHETHER TO MAKE OR BUY A SURVEY
Many compensation specialists will never be required to design and implement a pay survey, but
almost all compensation specialists will sooner or later be required to analyze surveys and make certain
pay-related recommendations from their analysis.
Answers to Assignment
Sample Analysis of the Make or Buy Decision
Buy Surveys (approximate cost)
RFP (costs in response to the RFP)
Range $25,000 – $50,00 average cost $37,500
Design and Conduct Own Survey
Survey Manager Time $26,000
Data Entry Operators
$2,000 * 2 months * 2 operators $8,000
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There are advantages and disadvantages of third party surveys as discussed in Chapter 10 of the
text. But, from a purely economic perspective, purchasing surveys is the most cost-efficient route.
Students should be encouraged to examine the wisdom of their decision, whatever they choose