Unit 7 Flashcards
(20 cards)
Compensation differential
A higher compensation level offered because of undesirable aspects of the job
Market comparator firms
Firms selected as comparators when building a sample of market data
Key job matching
Compensation survey that asks for compensation information on jobs that are well understood and numerous in the labour market
Mean or simple average
Divide a set of values by the number of values to measure central tendencies
Weighted mean or weighted average
A measure of central tendency of a set of values that adjusts the average based on the number of cases to which each value pertains
Median
The middle value in an ordered list of values
Quartiles or deciles
Division of an ordered list of values into either four groups (quartiles) or ten groups (deciles)
Interquartile range
A measure of pay dispersion across employers, calculated by dividing the difference between the 25th and 75th percentile values by the value of the 25th percentile
Compa-ratio
A measure of distribution of employees within their pay range calculated by dividing the mean base pay by the midpoint of the pay group
Aging the data
Adjusting compensation data to bring it up to date with the time period when the new compensation will take effect
Equal interval approach
Method to establish pay grade widths, in which the point spreads are equal for all pay grids
Equal increase approach
Method to establish pay grade size, in which each pay grade increases in width by a constant number of points from the preceding pay grade
Equal percentage approach
Method to establish pay grade sizes, in which each pay grade increases in width by an equal percentage from the preceding pay grade
Broadbanding
The practice of reducing the number of pay grades by creating large or fat grades, sometimes known as bands
Intergrade differentials
The difference between the range midpoints of adjacent pay grades in a pay structure, expressed in dollars
Intergrade differential percentage
Calculated by dividing the intergrade differential (expresses in dollars) of each pay grade by the midpoint (in dollars) of the previous pay grade
Range spread
The difference between the maximum and the minimum pay level, in dollars, for a given pay range
Range spread percentage
A percentage calculated by dividing the range spread for a given pay range by the minimum for the pay range
Just noticeable difference (JND)
The amount of pay increase necessary to be considered significant by employees receiving the increase
Living wage
The minimum income necessary to help a worker enjoy a decent standard of living
