Compensation Glossary
Welcome to SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Employment Contract
In a way, all employment is an employment contract, but at times it is in the interests of the company to establish a written agreement. This is usually for a key employee. Such a contract usually includes a written guarantee of receiving certain rewards, regardless of the results produced on the job beyond a stipulated period. The employment contract may also have other stipulations, such as a no competition clause (where the new employee agrees not to compete with the business of the present employer for a certain amount of time).
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Cost of Living
Shift Differentials
Pay Grade
Pay Equity
Compensable Factors
Red Circle Rate
Lump Sum Merit
Percentile
Defined Contribution Plans
Lead Pay Structure Policy
Range Penetration
Merit Increase
Broadbanding
Consumer Price Index (CPI)
Job Evaluation
Foreign Earned Income Exclusion
Internal Equity
Benchmarking
Job Family
Individual Retirement Account (IRA)
Green Circle Rate
Median
Compa-Ratio
Minimum Wage
Hours of Work
Gender Pay Gap
Pay Range Overlap
Salary Range
Linear Regression
Market Based Salary Increase Budget
Salary Structure Change
Sales Compensation
Restricted Stock
Range
Mode
Works Council
Lag the Market
Range Spread
FICA
Midpoint Progression
Standard Error of Estimate
Market Pricing
Total Rewards
Year of Service
Mix
Promotional Increase
Salary Grade
Turnover
Step Rates
Long-Term Incentive Plan
Cost of Labor
Standard Deviation
Geographic Differential
General Salary Increase
Market Index
Stock Option Incentive
Lead-Lag Pay Structure Policy
Mean
Aging Survey Data
Benchmark Job
Demotion
Bonus
Annual Incentive
Quartile
Coefficient of Determination
Defined Benefit Plans
Black-Scholes Model Z
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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
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