Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Due Diligence Process
A legal requirement before public offerings, the due diligence process establishes the financial and operating stability of a company. The process involves a diverse group of experts who examine and evaluate data and assess the property being acquired for any conditions that would affect the price.
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Lag the Market
Shift Differentials
Promotional Increase
Salary Grade
Standard Error of Estimate
Step Rates
Black-Scholes Model Z
Works Council
Annual Incentive
Broadbanding
Range Penetration
Range
Turnover
Lead Pay Structure Policy
Demotion
Green Circle Rate
Pay Grade
Range Spread
Internal Equity
Hours of Work
Standard Deviation
Mode
Benchmarking
Defined Contribution Plans
Market Pricing
Salary Range
Red Circle Rate
Quartile
Pay Equity
Restricted Stock
Compa-Ratio
Stock Option Incentive
Geographic Differential
Job Family
Aging Survey Data
General Salary Increase
Coefficient of Determination
Bonus
Mix
Pay Range Overlap
Median
Lead-Lag Pay Structure Policy
Defined Benefit Plans
Linear Regression
Merit Increase
Midpoint Progression
Long-Term Incentive Plan
Total Rewards
Market Based Salary Increase Budget
FICA
Market Index
Job Evaluation
Cost of Living
Salary Structure Change
Minimum Wage
Compensable Factors
Consumer Price Index (CPI)
Cost of Labor
Mean
Percentile
Year of Service
Gender Pay Gap
Benchmark Job
Sales Compensation
Lump Sum Merit
Foreign Earned Income Exclusion
Individual Retirement Account (IRA)
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Find commonly used compensation terms and formulas for your reference when planning compensation.
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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.
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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