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Performance pay differential


It measures the average variable pay received by a high performer compared to the variable pay received by a non high performer.



Calculation steps:

  1. correlate each employee with their performance rating
  2. correlate each employee with the amounts of cash received according to their performance
  3. average the payout for every performance rating category
  4. divide the average bonus payout received by employees within the high performer category to the average payout of employees within the meets expectation category


The metric can also be calculated for Total Cash.

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