← HR Metrics·Compensation & Benefits
Midpoint Progression
Percentage step between adjacent pay-grade midpoints; for a whole structure, the constant geometric progression. Larger progression → fewer grades.
How it’s computed
adjacent: (mid_next - mid) / mid ; structure: (highest_mid / lowest_mid)^(1/(n-1)) - 1
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.
“Range profiles often are used in conjunction with either the compa-ratio or range penetration to describe where employees should expect their pay to fall in relationship to their pay range over time. (See Figure 11.6 .) [image "Chapter_11_image009.gif" file=Image00119.gif]…”
— Worldatwork Handbook Compensationmatch 73%
“Midpoint management techniques can help to control the structure. They use compa ratios, which express the actual rate of pay as a percentage of the midpoint when the latter is regarded as the policy rate of pay or the reference point. The analysis of compa ratios indicates what…”
— The Compensation Handbook (6th ed.)match 60%
“This target represents the destination salary (or going rate) for jobs in a particular grade level. The actual value of the midpoint will depend on the organization’s compensation philosophy (i.e., what to pay within the context of the organization’s goals and the local,…”
— The Compensation Handbook (6th ed.)match 56%
Resources: Worldatwork Handbook Compensation · The Compensation Handbook (6th ed.)