Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Interest Option
In life insurance, a settlement option under which all or part of the proceeds of a policy are left with the insurance company for a definite period at a guaranteed minimum rate of interest. The principal remains with the company for a specified period of time. Interest may be paid (usually subject to certain minimums) annually, semiannually, quarterly or monthly # or, in some cases, may be added to the proceeds.
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Defined Contribution Plans
Compensable Factors
Benchmark Job
Broadbanding
Total Rewards
Red Circle Rate
Mode
Pay Range Overlap
Range Spread
Market Pricing
Pay Grade
Lump Sum Merit
Promotional Increase
Benchmarking
Job Evaluation
Cost of Living
Shift Differentials
Long-Term Incentive Plan
Market Based Salary Increase Budget
Lag the Market
Standard Deviation
Standard Error of Estimate
Foreign Earned Income Exclusion
Restricted Stock
Market Index
Lead-Lag Pay Structure Policy
Coefficient of Determination
Linear Regression
Individual Retirement Account (IRA)
Compa-Ratio
Job Family
Midpoint Progression
Annual Incentive
Percentile
Mix
Black-Scholes Model Z
General Salary Increase
Works Council
Sales Compensation
Minimum Wage
Turnover
Quartile
Merit Increase
Defined Benefit Plans
Lead Pay Structure Policy
Aging Survey Data
Salary Structure Change
Median
Geographic Differential
Gender Pay Gap
Step Rates
FICA
Stock Option Incentive
Green Circle Rate
Demotion
Range
Pay Equity
Year of Service
Salary Grade
Hours of Work
Mean
Bonus
Salary Range
Consumer Price Index (CPI)
Internal Equity
Cost of Labor
Range Penetration
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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