Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Below Market
A wage strategy that pays below average salaries to keep costs down. Firms that engage in this strategy either can't afford market rates or have simple, repetitive jobs with production systems and processes in place which utilize a labor supply that is plentiful in the marketplace.
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Minimum Wage
Defined Contribution Plans
Total Rewards
Lead-Lag Pay Structure Policy
Individual Retirement Account (IRA)
Compa-Ratio
Promotional Increase
Job Family
Works Council
Black-Scholes Model Z
Standard Deviation
Turnover
Lag the Market
Median
Mix
Red Circle Rate
Range Spread
Gender Pay Gap
Annual Incentive
Percentile
Pay Equity
Standard Error of Estimate
Foreign Earned Income Exclusion
Mode
Hours of Work
Sales Compensation
Market Based Salary Increase Budget
Mean
Bonus
Midpoint Progression
Range
Benchmark Job
Market Index
Step Rates
Coefficient of Determination
Benchmarking
Cost of Living
Quartile
Aging Survey Data
Defined Benefit Plans
Linear Regression
Demotion
FICA
Internal Equity
Cost of Labor
Merit Increase
Restricted Stock
Pay Range Overlap
Broadbanding
Green Circle Rate
Lead Pay Structure Policy
Compensable Factors
Lump Sum Merit
Stock Option Incentive
Salary Range
Long-Term Incentive Plan
Range Penetration
Pay Grade
Year of Service
Salary Structure Change
Shift Differentials
Geographic Differential
Salary Grade
Market Pricing
General Salary Increase
Consumer Price Index (CPI)
Job Evaluation
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Common Compensation Terms and Formulas - January 2026
Find commonly used compensation terms and formulas for your reference when planning compensation.
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Insights on Compensation
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
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