I am trying to understand the new midrange logic and what 80% of the midrange means. Does it meant 80% of the midrange amount OR 80% to the midrange from the low end of the range? Those numbers are not the same. I read the FAQ and it is not clear and reads as if it was written by someone who is not strong in math, not understand the difference between mean and median.
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It's 80% of the midpoint. So, if the low is 80,000, the midpoint is 100,000, and the high is 120,000, then it would be 80% of the midpoint 100,000. Which (and I know this does not seem to make sense) would be 96,000.
By the way, a "mean" value is just another way of saying average. It's the average of all numbers in the dataset. A "median" is the value exactly in the middle of a set of numbers, with an equal amount of numbers on both sides.
Sometimes the mean will equal the median, but not always. It depends on the dataset.
Midpoint market amount is the average salary for your title/level/skill. Its exactly in the middle between the low & high ends of the TSR. Example... if the midpoint is $100,000, then the low TSR minimum is $80,000, and the high TSR maximum is $120,000. Anyone below the midpoint tends to get a higher percentage increase than another person whose salary is above the midpoint, assuming both are rated the same performance level. Percentage wise, I don't think its a straight scale; I think the increases are on a curve, but they don't publish that information.
The midrange # apparently comes from 3rd parties that organize compensation surveys.
lower TSR bound = 0.8* midrange market amount
upper TSR bound = 1.2* midrange market amount
HR uses confusing verbiage to communicate the changes. And since you're thinking of the salary distributions, my guess is that the salaries are not normally distributed; most are near the upper bound given the high # years of experience of people in the roles and the low raise %'s this year.