Salary survey=price fixing??

System

As I was calling around and gathering information on what other companies are paying their pharmacists, I was informed (by two hospitals) that I should use an outside vendor,as what I was doing was illegal and considered price fixing. Is this something new?

Down_the_Middle

This notion of price fixing has been an issue for the FTC for many years. Technically the caller informed you correctly, but only if you use the market salary data exclusively for purposes of establishing market dominance with pricing. In the 20 or so years that I've heard "price fixing" with salary/market data, I find most often that the "price fixing" response is an excuse to avoid sharing mkt data. I understand the intellectual argument that prohibits price fixing, but fail to understand the artificial protection of using a 3rd party salary survey vendor and you know most of the participants...... I personally find the networking phonecalls with colleagues to have great value and none of it has to do with price fixing. Just my 2-cents.......

HRCalico

That's a new one to me. I wouldn't see it as a problem, but apparently they did. Can you contact your state DOL for the info? NE has a great web site that can be customized for area - it even shows figures for neighboring states.

Dasher

Can't see what kind of price you are fixing in gathering and considering salary information from comparable companies. That is, unless you and the companies are specifically setting prices or you work for Microsoft or something.

Salary surveys are an acceptable means of collecting data for like size/industry comps. I use published surveys, internet sources, federal and state data, as well as the telephone/written requests that I do with similar companies in my city. Gee -- if they don't want to participate in a survey, just say so. Why try to scare the socks off of a person!

HAPPYINHR

I agree- Nobody in HR wants to hear they are doing something illegal. That certainly was not my intention. Thanks for the input.

mwild31

"I was informed (by two hospitals) that I should use an outside vendor,as what I was doing was illegal and considered price fixing."

Yes, it's illegal and considered price fixing. IF, you are working in collusion with other hospitals and pharmacies (your competitors) to set the wages in your area. IF, as you are setting these wages, you agree with your competitors to share future plans for wages as well. IF, you and your competitors keep each other informed about decisions, adjustments, tweaks just so that you and your group of co-conspirators can artificially set the wages of a a category or group of employees within the area. IF, you all (you and your competitors) don't disclose to employees/applicants and the public in general that you perform this practice, etc., etc. ...

If you are NOT doing these things, then you're probably not doing anything illegal - just trying to figure out what the wages are at other places - right from the horse's mouth so to speak. However, I don't think it's a "best practice" and you are better off seeking out third party information so no one can accuse your company of attempting to price fix. Also, you need to look at your wages as proprietary information - do you really want to disclose your wages to another company, so that that company can then take your employees by offering them more money? Probably not.