The pay difference between employees after accounting for factors like experience, education, and job performance to ensure fair comparisons.

The fixed salary or hourly wage an employee earns before any bonuses, benefits, or other compensation is added.

A job role with standardized duties that is widely used for comparing pay rates and compensation across organizations.

The process of comparing an organization’s compensation and benefits against industry standards to maintain competitive pay practices.

A structured program offering additional compensation to employees based on performance or achieving specific goals.

A ratio that compares an employee’s salary to the midpoint of a pay range, used to assess if pay is aligned with market rates.

The strategic process of designing, implementing, and maintaining pay structures and benefits to attract and retain talent.

A company’s guiding principles on how it compensates employees, reflecting values like fairness, market competitiveness, and performance.

A blend of multiple job benchmarks used to create a comprehensive standard for evaluating compensation levels across various roles.

Equity, in the context of a job, refers to ownership shares in a company that employees receive as part of their compensation package. It allows employees to benefit from the company's growth and success, often in the form of stock options or restricted stock units.

A hybrid job is a position that combines elements of both remote work and in-office work, allowing employees to split their time between working from home and working at a physical workplace.

A structured framework that defines job roles, levels, and career paths within an organization, helping to align roles with business objectives.

A systematic process used to determine the relative worth of jobs within an organization to establish fair compensation.

A compensation strategy that rewards employees with equity or cash based on the company's performance over a multi-year period.

A metric that compares an employee's salary to the market average for similar roles, expressed as a ratio.

The process of determining the salary rates for specific jobs based on external market data to ensure competitive compensation.

A benchmark or target salary level based on market data for specific job roles, used to guide compensation decisions.

The total amount of money allocated for salary increases based on employee performance during a specific period.

The annual period during which performance evaluations are conducted, and salary increases are determined based on merit.

A tool that helps organizations determine salary increases by aligning employee performance ratings with pay increases based on predetermined criteria.

A salary range established for specific job levels or roles within an organization, providing guidelines for compensation.

The principle of ensuring that employees performing similar work receive equal pay, regardless of gender, race, or other factors.

Acompensation strategy that ties an employee's pay to their individual performance or the performance of the organization, incentivizing higher productivity and achievement of specific goals.

The combination of base salary and variable pay (such as bonuses or incentives) in an employee's total compensation package.

The practice of openly sharing information about compensation policies, salary ranges, and pay structures within an organization.

A statistical measure indicating the relative position of a salary within a distribution, showing what percentage of salaries fall below that amount.

A measure of how far an employee's salary is positioned within a defined pay range, expressed as a percentage.

A compensation program that rewards employees with cash bonuses based on performance over a short period, typically one year.

The complete package of compensation, benefits, and non-monetary perks that an organization offers to its employees.

The difference in average pay between two groups (e.g., genders or ethnicities) without accounting for factors like job level or experience.

Compensation that is not fixed and can change based on performance, such as bonuses, commissions, or profit-sharing.