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New York, NY—Raise your hand if you’ve had any customers come into your store brandishing a printout of Blue Nile or other online diamond prices. Been there, done that?

Now raise your hand if your employees are waiting outside your office brandishing salary data from the Internet and expecting to use it to start a conversation about raises.

With the availability of almost any kind of information online, if it hasn’t happened yet, it’s likely only a matter of time. And in a high-end store or factory where the price tags of some of the merchandise have more zeros than some of the employees’ salaries, it can be a very delicate negotiation.

How do you as the business owner or manager deal with these conversations? Are you hide-bound to meet the numbers on the sheet?

Not necessarily. Here are some tips excerpted from the “Compensation Force” blog on Workforce Management.

1.   You can’t brush the conversation aside but you can establish a policy that requires all pay data used for comparison meet certain standards of quality.  

2.   Explain that not all data is created equal. Quality data will describe the methodology used in gathering survey participants, as well as the collection, analysis, and checking of the data. Lack of transparency suggests something to hide.

3.   Data supplied by an independent, verifiable source (such as the HR or payroll manager) is more reliable than data supplied by search firms or self-reported by employees, both of whom stand to gain from inflated figures.

4.   The survey should identify participating companies, if not by name then at least by demographic description. It’s only a valid comparison if you’re comparing like with like.  

5.   Likewise, the survey should include job descriptions, such as education or experience requirements, responsibilities, and other elements germane to a position. Title alone is insufficient.

6.   Be sure the data is current (not old with an inflation adjustment) and that the sample size is large enough to be statistically significant. 200 responses are far more valid than five responses, which can greatly skew results. To read in full detail, click here:http://www.compensationforce.com/2010/10/taking-a-stand-for-quality-in-the-pay-data-battle.html