← HR Metrics·Compensation & Benefits
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.
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