How does Algas.lv website work?

Salary Survey Methodology

Algas.lv 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 Latvia and is being constantly updated based on information from users. The site in Latvia is operated by the leading online recruitment services provider CV-Online Latvia.

This salary survey was created in Slovakia in 2007 under the name Merces.sk and now known as Platy.sk. 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 Baltic states - Latvia (Algas.lv), Estonia (Palgad.ee) and Lithuania (Manoalga.lt) as well as in other partner countries. The methodology and technological solutions are auspiced by the international portal Paylab.com. 

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

1. Input data 

By filling out a questionnaire on Algas.lv, people in the job market have the possibility to get a comparison of their salaries with other employees on the same position and in the same region. Every user who states in the questionnaire that they have work experience on the selected position and whose data undergoes data cleansing (removing duplicate and extreme values) becomes a valid respondent and will in return get a salary comparison with the average of the reference sample. The sample is created by other respondents according to the filled-in position and region. If the respondent states that he/she is not working on the selected position, he/she is not a respondent. 

Each valid respondent's data are valid for one year. All data in the salary survey are anonymous, unless the respondent voluntarily fills out their e-mail address for the purpose of receiving a salary comparison in the future. The procedure of collecting and processing the data fully respects the GDPR directive on personal data processing. 

The salary survey collects respondents’ data expressed by the value of their net monthly salary for full-time employment. The survey does not contain data on self-employed workers or on other forms of employment.

2. Output data 

Before the actual calculations, the data sample is being "cleansed". Firstly, extreme values are filtered away, such as for example a salary of 100 EUR/month or 10 Million EUR/month. The second step of database cleansing is detecting duplicate questionnaires. The third step is excluding questionnaires that do not fit within the interval of acceptable salaries, determined by past data for specific positions. Extreme data removal is based on robust estimates of the parameters of theoretical salary distribution on the position according to the region. 

The salary data from questionnaires that have gone through the process of cleansing enter into the dataset for regressive statistical model. 

3. Regressive Model 

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

The regressive model calculates salary values on the position level, as long as there are at least 10 respondents in the dataset. As a standard, the number of respondents on a position over the last 12 months is surveyed, but if their number is lower, data from the past 24, or as the case may be, 36 months is taken into account. 

Outputs resulting from the regressive model provide information by company size:

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

In terms of levels of education, the regressive model distinguishes:

  • lower than high school graduation education
  • high school graduation or post-high-school training education
  • university education

Work experience is assessed by 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 is it not possible to display the results? 

In spite of applying the Regressive Model, it can happen that it is not possible to display the information about the salary on a specific position. This 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 giving them advice and clues how to negotiate about their salary. The user has the option to request receiving a salary comparison automatically, once it is possible to estimate the salary. The only thing they have to do is enter their email address to which we will send a link to their salary comparison. 

5. Salary Report Plus - Output for employees 

The basic information from Algas.lv survey is the average salary on the position in Latvia. After filling in the salary comparison questionnaire, the user navigates to a free salary comparison - may it be the expected one or the real one. The outputs are displayed directly on the website. 

Every visitor also has the option of purchasing a more detailed paid version of the output, called Salary Report Plus, 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 provision of nonfinancial benefits on the specific position with regard to the specific region. The information about nonfinancial benefits will be displayed if the selected sample contains at least 10 respondents over the last 12 months. 

The paid version of outputs for people also includes advice and tips on salary negotiations, preparation for an employee SWOT analysis etc. The whole salary report contains more than 20 pages and is suitable for those who are getting ready for a job interview or a meeting with their manager, where a salary adjustment is to be negotiated. 

Users can purchase the paid report through a payment in the PayPal system or using several bank links. 

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

6. Salary Report Pro - Outputs for Companies (employers)

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% employees earn less than the given value 
  • 1. quartile – 25% employees earn less than the given value 
  • median – half of the employees earn less/more than the given value 
  • 3. quartile – 25% employees earn more than the given value 
  • 9. decile – 10% 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 brackets. This chart will show what percentage of employees can be found in one of the 10 pay brackets 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 company size 
  • according to age 

All above mentioned information in the Salary Report Pro comes from the Regressive Model. With the help of standard statistics based on respondents' data, the share of respondents who receive the given nonfinancial benefits can be calculated. 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 receive the given salary component: a variable salary component, the Christmas bonus salary, annual rewards, and what the median amount of these salary components is. These values can be displayed if there are at least 5 respondents in the sample, which takes into account the selected position, region, work experience, education and company size. 

Salary Report Pro can be purchased online through a payment in the PayPal system or using several bank links. When it is paid in this way, a PDF output with the report is immediately automatically sent to the email address entered in the order. Should the client request purchasing the given report on 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] or call (+371) 67356110.

8. Salary Analyses Tailored to Your Company

Algas.lv Salary Survey makes it possible to export data on the basis of various criteria. Thus it is often used to serve the media. The collected data and the flexibility of the system offer the possibility of providing companies with various analyses tailored to the company, even non-standard ones. For information about such analyses, please contact: [email protected] or call (+371) 67356110. 

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