← HR Metrics·Compensation & Benefits
Average Base Salary
Mean base salary across all employees
How it’s computed
AVG(base_salary)
What the evidence shows
Evidence (effect sizes, priors, validity) is syncing from Principia.
Run it on your data
This metric is computed in the People Analytics Toolbox on your own numbers. See pricing — posted, no quotes.
sources: toolbox:metrics-catalog
What the literature says
The measurement literature behind this signal — sourced, so you can defend it.
“This also exacerbates the issue regarding the comparison of a small office with two large offices.CHAPTER 4 MEASURES OF LOCATION 4.1 Number99Mode50,000Median65,000Mean66,364Trimmed mean (n = 89)65,652 4.2 Skewed positively with a tail to the right, because the mean is more than…”
— Statistics for Compensationmatch 53%
“It is calculated by dividing the sum of salary increase amounts for all eligible employees by the eligible payroll. Both the numerator and the denominator include those who were eligible and participated but received no increase.[C4, GR4]AwardAn amount of cash, a prize, a symbol…”
— Worldatwork Handbook Compensationmatch 51%
“The good news is that it does use all the data points and in its own way represents all the numbers under study. The bad news is that as such, it is influenced, or affected by every one of the data points, including any extreme values. If there are extremely high values, the…”
— Statistics for Compensationmatch 50%
Resources: Statistics for Compensation · Worldatwork Handbook Compensation