Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Percentile
A point on a rank-ordered scale, found by dividing a group of observations into parts in order of magnitude from lowest to highest. The first percentile approximates the very lowest/bottom number found, while the 100th percentile is the very highest reported. The nth percentile is the point exceeding n percent of the observations. For example, in test taking, a score equal to or greater than 55 percent of those earned on an exam is said to be at the 55th percentile.
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Bonus
Midpoint Progression
Defined Benefit Plans
Internal Equity
Geographic Differential
Pay Range Overlap
Black-Scholes Model Z
Works Council
Lump Sum Merit
Demotion
Foreign Earned Income Exclusion
Restricted Stock
Mode
Salary Structure Change
Compensable Factors
General Salary Increase
Job Evaluation
Market Index
Defined Contribution Plans
Shift Differentials
Salary Grade
Individual Retirement Account (IRA)
Benchmarking
Range Penetration
Red Circle Rate
Year of Service
Job Family
FICA
Merit Increase
Median
Standard Error of Estimate
Coefficient of Determination
Promotional Increase
Turnover
Broadbanding
Sales Compensation
Market Based Salary Increase Budget
Cost of Labor
Lead Pay Structure Policy
Compa-Ratio
Long-Term Incentive Plan
Mean
Step Rates
Hours of Work
Linear Regression
Pay Grade
Lead-Lag Pay Structure Policy
Pay Equity
Cost of Living
Aging Survey Data
Mix
Range
Consumer Price Index (CPI)
Standard Deviation
Total Rewards
Lag the Market
Range Spread
Quartile
Salary Range
Green Circle Rate
Stock Option Incentive
Gender Pay Gap
Minimum Wage
Benchmark Job
Market Pricing
Percentile
Annual Incentive
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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