Glossary · Compensation

Compensation Philosophy

How an employer positions pay vs. the market.

Definition

Compensation philosophy is an employer's stated approach to pay — typically targeting the 50th, 75th, or 90th percentile of market rates for a role.

How SalaryScopePro uses this term

We surface compensation philosophy across salary results, occupation pages, city pages, and Premium Reports — with consistent definitions and methodology. See methodology and data sources for how the underlying numbers are computed.