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GLOSSARY

DATA ANALYSIS

The pay position observations in this report in relation to the market data are made in the context of the following terms:

  • Base pay: The annual Full Time Equivalent (FTE) base salary paid to the incumbent, exclusive of allowances or variable cash awards. The FTE used throughout the analysis is 37.5 hours per week as this corresponds to the FTE used in the Willis Towers Watson methodology.
  • Total cash: Base pay plus any FTE bonus or commission paid to the incumbent in the previous 12 months. We include here the amounts paid as a Token of Appreciation.
  • Upper quartile (UQ): The value exceeded by 25% of salaries of incumbents in the survey sample.
  • Market median: The midpoint in the set of values, 50% of salaries of incumbents in the survey sample are above this level and 50% are below.
  • Lower quartile (LQ): The value exceeded by 75% of salaries of incumbents in the survey sample.
  • ‘Within range’: Instances where the incumbent salary is within 10% of the market median. 

The mid point of the clients salary scales and individual remuneration packages are compared with the relevant median value from the survey data set. Any disparity is converted to into a ‘comparison ratio’ (or compa-ratio) calculated as follows:   

Comparison ratio = Incumbent pay
                                ____________

                                Survey pay

 

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