Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Rating Classes
A rating class is essentially a risk category assigned by life insurance companies. When a policy is applied for, the company will evaluate the application and place the applicant into one of several different categories of risk depending on their individual circumstances. The rating class is based on personal mortality risk. Information used to determine a rating class includes current health, medical history, family history and participation in dangerous activities.
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Range Spread
Salary Range
Salary Grade
Defined Benefit Plans
Job Family
Stock Option Incentive
Lead Pay Structure Policy
Gender Pay Gap
Sales Compensation
Merit Increase
Turnover
Broadbanding
Long-Term Incentive Plan
Coefficient of Determination
Cost of Living
Market Index
Individual Retirement Account (IRA)
Pay Grade
Job Evaluation
Pay Equity
Defined Contribution Plans
Salary Structure Change
Hours of Work
Benchmarking
Compa-Ratio
Promotional Increase
Standard Deviation
Benchmark Job
Minimum Wage
Quartile
Linear Regression
Step Rates
Cost of Labor
Total Rewards
Market Based Salary Increase Budget
FICA
Restricted Stock
Compensable Factors
Internal Equity
Range Penetration
Lump Sum Merit
Black-Scholes Model Z
Foreign Earned Income Exclusion
Lag the Market
Annual Incentive
Mean
Shift Differentials
General Salary Increase
Works Council
Midpoint Progression
Demotion
Median
Standard Error of Estimate
Year of Service
Mode
Mix
Green Circle Rate
Geographic Differential
Aging Survey Data
Bonus
Lead-Lag Pay Structure Policy
Red Circle Rate
Percentile
Range
Pay Range Overlap
Market Pricing
Consumer Price Index (CPI)
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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.
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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