Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Rightsizing
This is a term used to describe the elimination of non-essential or redundant positions in order to reduce the size of the work force to the smallest possible size it can be without negatively affecting operations. The employees who are not laid off at the end of this process are known as residual employees.
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Total Rewards
Pay Range Overlap
Minimum Wage
Geographic Differential
Demotion
General Salary Increase
Range Spread
Market Index
Broadbanding
Long-Term Incentive Plan
Stock Option Incentive
Market Based Salary Increase Budget
Pay Equity
Quartile
Restricted Stock
Compensable Factors
Green Circle Rate
Market Pricing
Lead Pay Structure Policy
Cost of Labor
Mean
Bonus
Step Rates
Red Circle Rate
Pay Grade
Coefficient of Determination
Salary Grade
Mix
Works Council
Turnover
Benchmark Job
Mode
Job Family
Annual Incentive
Gender Pay Gap
Promotional Increase
Benchmarking
Consumer Price Index (CPI)
Foreign Earned Income Exclusion
Lump Sum Merit
Individual Retirement Account (IRA)
Midpoint Progression
Defined Contribution Plans
Lead-Lag Pay Structure Policy
Compa-Ratio
Black-Scholes Model Z
Lag the Market
Hours of Work
Linear Regression
FICA
Shift Differentials
Year of Service
Salary Range
Internal Equity
Range Penetration
Job Evaluation
Salary Structure Change
Defined Benefit Plans
Merit Increase
Percentile
Standard Deviation
Standard Error of Estimate
Sales Compensation
Range
Cost of Living
Median
Aging Survey Data
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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