Quantitative Methods Used in Salary Administration

Percentiles

Percentiles are arbitrarily selected units determined by dividing a whole into a distribution of 100 equal parts. Percentiles are frequently used to determine what proportion of the distribution falls below a given level.

Example of percentiles

You hired a secretary at a $47,728 annual base salary. Among the 123 secretaries in your organization, he is the 10th highest paid. His salary is at what percentile?

Rank 10th highest of 123 secretaries
Standing (maximum - ranking) 123 - 10 = 113
Percentage ((standing / maximum) x 100) (113 / 123) x 100 = 91.87
Percentile (round down) 91st

Memory Jogger

You hired a counter clerk at $41,706 per year. Among the 27 counter clerks your organization employs, she is the 13th highest paid. What percentile is her salary?

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