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Market Index of Competitiveness
Company pay relative to the market rate for a job (or aggregated). 100 = at market; ±10% tolerance → 95-105% is fully competitive. Distinct from market-median (which describes the market); this is company-vs-market position.
How it’s computed
company_pay / market_rate * 100
What the evidence shows
Evidence (effect sizes, priors, validity) is syncing from Principia.
What this metric can show you
Market Index of Competitiveness can tell roughly 22 pre-built stories — each a designed scene the data either confirms or it doesn’t. Bring your numbers and the Story Finder runs every one of these shapes against them.
specific to compensation & benefits
A real gradient — now ask if it's pointed at value
compensation · T1
Below the market, across the board
compensation · T1
One group sits apart on a decision that should be neutral
fairness-equity · T1
Pay is drifting from plan
compensation · T1
universal shapes — any single metric can take these
A few large values are doing the talking
any focus · T1
A one-time event, not a trend
any focus · T1
It doesn't track — the premise is false
any focus · T1
It's concentrated — one group stands apart
any focus · T1
Scenes are pre-built; your data is the toggle. Browse the full deck or watch one play end-to-end in The Quiet Exodus.
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.
“Margin usually is expressed as a percentage of the premium.[B3, B3A]Marginal tax rateThe tax rate that applies to the next dollar of income generated.[C6, C6A]Market-adjustmentThe percentage increase to organization, group or individual pay that is necessary to adjust it to the…”
— Worldatwork Handbook Compensationmatch 67%
“You will weight surveys in your industry more heavily if you have established a strategy that defines your competitive labor market as industry-specific.Quality of surveys . The statistical analyses provided—participant base and number of cases per job, among other…”
— Worldatwork Handbook Compensationmatch 66%
“If, however, the company uses a quantitative evaluation system, such as job content or point factor method, a job with a very low or very high market index may have to be “green circled” or “red circled” to ensure the continued internal equity of all jobs. (See Sidebar 8.1…”
— Worldatwork Handbook Compensationmatch 63%
Resources: Worldatwork Handbook Compensation