Looking to Benchmark Pay?
Interval Measurements
Interval scales are equal-unit scales; that is, the distance between adjacent units on an interval scale is the same, irrespective of the magnitude of the adjacent scale units. For instance, the distance between $5,000 and $6,000 is the same as the distance between $61,000 and $62,000 since it reflects a measurable increase in real dollars.
Interval scales, however, are only relative. For example, if these amounts ($5,000 to $6,000 and $61,000 to $62,000) were to represent sales compensation, the amount of actual sales required to produce the increase in sales compensation may be different at $5,000 (to $6,000) vs. $61,000 (to $62,000). Thus, the dollar scale may reflect relative rather than absolute changes. For example:
| SALES ($) | BROKER'S COMMISSION ($) |
SALES COMMISSION ($) |
|---|---|---|
20,000 |
0 |
0 |
40,000 |
500 |
300 |
60,000 |
1,500 |
900 |
120,000 |
4,500 |
2,700 |
Interval scales are the most frequently used measurements in Human Resources pay practices. However, many Human Resources measurements cannot satisfy the requirements that measurements be similar and equidistant in their measurement intervals. Their ordinal or nominal characteristics must be recognized.