Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Expectancy Theory
This is a theory that states that individuals make choices according to what they anticipate will give them the most payoffs. When applied to salaries, it follows that employees must hold the belief that the greater the effort that they make, the better their performance will be (the greater their results) and therefore the higher the salary they will command.
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Salary Range
Works Council
Annual Incentive
Mix
Compensable Factors
Internal Equity
Quartile
Broadbanding
Long-Term Incentive Plan
Standard Error of Estimate
Market Index
Midpoint Progression
Pay Grade
Consumer Price Index (CPI)
Market Based Salary Increase Budget
Defined Benefit Plans
Lump Sum Merit
Sales Compensation
Pay Equity
Job Family
Range Spread
Range Penetration
Year of Service
Hours of Work
Geographic Differential
Restricted Stock
Black-Scholes Model Z
Bonus
Job Evaluation
Range
Lag the Market
Shift Differentials
Compa-Ratio
Promotional Increase
Linear Regression
Median
Benchmarking
Market Pricing
Turnover
Cost of Labor
Individual Retirement Account (IRA)
Lead-Lag Pay Structure Policy
Step Rates
Coefficient of Determination
Mean
Salary Structure Change
Percentile
Merit Increase
Minimum Wage
Mode
Demotion
Lead Pay Structure Policy
FICA
General Salary Increase
Cost of Living
Gender Pay Gap
Benchmark Job
Total Rewards
Stock Option Incentive
Green Circle Rate
Aging Survey Data
Foreign Earned Income Exclusion
Defined Contribution Plans
Red Circle Rate
Standard Deviation
Pay Range Overlap
Salary Grade
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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