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Congratulations!
You have completed ERI DLC Course 19: Quantitative Methods Used in Salary Administration.
Whether analyzing pay data, building a salary structure, implementing salary increases, or accounting for geographic pay differentials, some fundamental mathematical skills are needed. This course will introduce those skills and provide examples of how they are used in salary administration.
You should now be able to:
- Differentiate between mean (average), median, and mode
- Calculate an arithmetic mean, a geometric mean, and a weighted average
- Recognize why median may be more useful than mean in analyzing salary data
- Calculate a median from grouped data
- Define what a maturity curve is and why it is useful
- Differentiate between market index and compa-ratio and specify why they are useful measures
- Specify what salary grades and ranges are and how they are used to create a salary structure
- Calculate a salary structure’s grade midpoints, and range minimums and maximums
- Specify how to construct a performance salary increase matrix
- Calculate an adjustment to a pay policy line equation to reflect a general pay increase
- Differentiate between percentage and percentile and how to calculate each
- Calculate geographic pay differentials
- Specify how to calculate budgeted salary increases
Looking to Benchmark Pay?
See our salary, cost-of-living, and executive compensation data in action.