Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Balance Sheet Approach
An accounting term that describes a situation where debits and credits must match. The balance sheet approach is used to set expatriate compensation. There the goal is to protect or equalize an expatriate's purchasing power while on assignment abroad. Its primary objective is to ensure equity among expatriates and their home or base country peers.
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Restricted Stock
Standard Error of Estimate
Quartile
Lag the Market
Range
Annual Incentive
Shift Differentials
Green Circle Rate
Internal Equity
Job Family
Bonus
FICA
Benchmarking
Step Rates
Salary Range
Broadbanding
Standard Deviation
Range Penetration
Long-Term Incentive Plan
Pay Grade
Aging Survey Data
Linear Regression
Year of Service
Compa-Ratio
Defined Benefit Plans
Cost of Living
Percentile
Geographic Differential
Market Pricing
Hours of Work
Foreign Earned Income Exclusion
Defined Contribution Plans
Individual Retirement Account (IRA)
Works Council
Median
Gender Pay Gap
Midpoint Progression
Mode
Market Index
Demotion
Coefficient of Determination
Lead-Lag Pay Structure Policy
Sales Compensation
Job Evaluation
Lump Sum Merit
Salary Grade
Salary Structure Change
Consumer Price Index (CPI)
Red Circle Rate
Stock Option Incentive
Mean
Range Spread
Mix
Turnover
Total Rewards
Minimum Wage
Merit Increase
Black-Scholes Model Z
Lead Pay Structure Policy
Promotional Increase
Cost of Labor
Pay Equity
Market Based Salary Increase Budget
General Salary Increase
Pay Range Overlap
Compensable Factors
Benchmark Job
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ERI SalaryExpert was launched in 2000 by ERI Economic Research Institute to help organizations and individuals optimize salary planning. Our robust compensation management solution houses the global salary survey data and applications needed to design competitive and effective compensation structures. From benchmarking with reliable market data to analyzing geographic differentials and conducting pay equity analyses, our intelligent platform is an innovative way of merging integral salary survey data with efficient features, all in one system.
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Featured White Paper
Common Compensation Terms and Formulas - January 2026
Find commonly used compensation terms and formulas for your reference when planning compensation.
Ready to Streamline Your Compensation Strategy with Us?
Discover how our Assessor Platform can help you attract top talent, stay on top of market trends, and set your organization up for success, all in one platform.
Try a Free Demo
About Us
ERI SalaryExpert was launched in 2000 by ERI Economic Research Institute to help organizations and individuals optimize salary planning. Our robust compensation management solution houses the global salary survey data and applications needed to design competitive and effective compensation structures. From benchmarking with reliable market data to analyzing geographic differentials and conducting pay equity analyses, our intelligent platform is an innovative way of merging integral salary survey data with efficient features, all in one system.
Learn More