Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Indexing
A statistical model expressed in terms of percentages of a base year or years that serves as a reference in judging investment performance. The index most often used for stock market performance is the Standard & Poor's 500 Index, which measures the average performance of 500 widely held common stocks. Other frequently used indexes are the Dow Jones Industrial Average, the NASDAQ and the Russell 2000, used for smaller company stocks, the Toronto Stock Exchange 300 Composite Index (TSE 300), used in Canada, and the Morgan Stanley Capital International Europe, Australia, Far East Index (EAFE), which is used as a benchmark for foreign company stocks.
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Compa-Ratio
Bonus
Restricted Stock
Defined Benefit Plans
Standard Deviation
Internal Equity
Demotion
Hours of Work
Salary Grade
Market Index
Quartile
Long-Term Incentive Plan
Lead-Lag Pay Structure Policy
Green Circle Rate
Range
Gender Pay Gap
Shift Differentials
Benchmarking
Individual Retirement Account (IRA)
Job Family
Stock Option Incentive
FICA
Compensable Factors
Merit Increase
Mean
Lead Pay Structure Policy
Pay Range Overlap
Salary Structure Change
General Salary Increase
Broadbanding
Cost of Labor
Annual Incentive
Defined Contribution Plans
Range Spread
Works Council
Step Rates
Range Penetration
Median
Linear Regression
Consumer Price Index (CPI)
Sales Compensation
Coefficient of Determination
Percentile
Mix
Market Pricing
Market Based Salary Increase Budget
Year of Service
Mode
Promotional Increase
Lump Sum Merit
Turnover
Salary Range
Foreign Earned Income Exclusion
Standard Error of Estimate
Geographic Differential
Job Evaluation
Black-Scholes Model Z
Pay Grade
Benchmark Job
Cost of Living
Aging Survey Data
Red Circle Rate
Total Rewards
Lag the Market
Pay Equity
Midpoint Progression
Minimum Wage
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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