In a BLR webinar entitled "Compensation Strategies: How to Build a Market-Competitive Salary Structure that Retains and Attracts the Very Best," Diana D. Neelman, CCP of Compensation Resources, Inc. offered definitions for compensation terminology and market pricing terminology.
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Get Your Report Now!Compensation terms include:
- Base Salary: Fixed pay based on the competitive market
- Bonus: Discretionary awards for non-specified results
- Compensation Philosophy: Statement describing the company's intentions on pay, benefits and total rewards
- Incentive: Target awards for specified results: short-term incentives are plans based on targets less than twelve months; long-term incentives are plans based on targets over 12 months
Market Pricing terminology:
- Aging: Calculation used to adjust market data from different effective dates to a common date
- Average (or mean): Straight average; each company gets one "vote"
- Trim Mean: Calculates the mean taken by excluding data points from the top and bottom of a data set
- Market Consensus (MC): Average of the mean, media, trim mean and regression; represents the best estimate of the position's market value
- Mean: Average of a set of numbers
- Median/Midpoint: Value which lies at the middle of a distribution; 50th percentile
- Regression: Mathematical computation used to model a presumed linear relationship between two variables used to predict a dependent variable from an independent variable
Review our comprehensive glossary of compensation terms. |
Diana D. Neelman is a Principal and Senior Consultant with Compensation Resources, Inc.. (www. compensationresources.com) She manages the research and data analysis relative to the design and implementation of comprehensive compensation programs. Ms. Neelman is responsible for the development of written policy and communication materials, including plan documents, policies and procedures manuals and administrative forms that support the plan designs. She is also responsible for developing and conducting training programs covering various compensation topics. Furthermore, she oversees CRI's Survey Department, which published various compensation and benefits studies each year.
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