← HR Metrics·Compensation & Benefits
Skill-Ladder Earning Ratio
Maximum attainable pay as a percentage of entry pay across a person-based (skill/competency) certification ladder. Worked example: entry 100% → full certification 193% ($10→$19.30/hr). Pay rule: paid at highest certification rate.
How it’s computed
max_certified_rate / entry_rate
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.
“Through researched data and historical patterns Google found that new salespeople, who do not get a promotion within four years, are much more likely to leave the company. (3) A survey by TechnologyAdvice found that 56 percent of employees said perks were very or moderately…”
— People Analytics Text Mining with Rmatch 53%
“Career average pay may also be defined as career average salary (CAS) or career average earnings (CAE).[B1, B2]Career average salary (CAS)See career average pay (CAP) pension plan.[B1, B2]Career ladderA series of defined levels within a job family where the nature of the work is…”
— Worldatwork Handbook Compensationmatch 53%
“Thus, Walmart announced that it will start paying its employees more - subsequently, sales started to rise and stores hitting their customer service targets increased back to 75 percent by year 2016. (14)In year 2015, Ann Frost’s (associate professor at Ivey Business School in…”
— Predictive HR Analyticsmatch 53%
Resources: People Analytics Text Mining with R · Worldatwork Handbook Compensation · Predictive HR Analytics