Posted inAll sectors / Human Resource Management / Internal

Highest compensation versus median

Definition of this KPI:
Comparing the highest-paid employee to the median, is a measure that highlights the disparity in pay within an organization.

  • This KPI can be calculated as: The compensation for the best paid employee -/- the median (or midpoint) of the overall compensation distribution for all employees
  • The KPI will be measured as: financial value (e.g. €, $)
  • How to interpret the KPI: lower is better
  • The strategic objective to measure with this KPI: Equal payments; Happy employees make happy customers, which make happy shareholders
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