Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Spot Awards
Spot Awards are a frequently administered “alternative pay” program for non-exempt and exempt non-management personnel. They are usually cash or gift awards delivered “on-the-spot” for extraordinary performance, completion of a project, and/or individual recognition. These awards are typically administered at the discretion of management.
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Hours of Work
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Defined Benefit Plans
Works Council
Green Circle Rate
Turnover
Broadbanding
Consumer Price Index (CPI)
Standard Error of Estimate
Foreign Earned Income Exclusion
Minimum Wage
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Internal Equity
Black-Scholes Model Z
Salary Structure Change
Benchmarking
Annual Incentive
Demotion
Midpoint Progression
Mix
Market Based Salary Increase Budget
Cost of Labor
Lag the Market
Range Penetration
Aging Survey Data
General Salary Increase
Cost of Living
Compa-Ratio
Stock Option Incentive
Total Rewards
Range Spread
Mode
Lead Pay Structure Policy
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Mean
Restricted Stock
Percentile
Linear Regression
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Lump Sum Merit
Merit Increase
Job Family
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Defined Contribution Plans
Pay Range Overlap
Sales Compensation
Compensable Factors
Standard Deviation
Year of Service
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Market Pricing
FICA
Promotional Increase
Bonus
Market Index
Coefficient of Determination
Individual Retirement Account (IRA)
Red Circle Rate
Lead-Lag Pay Structure Policy
Median
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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