Calibration (Salary Calibration)

Intermediate 👥 Human Resources

Definition

The process of ensuring consistent and fair compensation across similar roles and experience levels. It's when HR pretends pay equity isn't a problem by making everyone's unfairness mathematically consistent.

Example Usage

During salary calibration, management discovered they were paying women 8% less than men in equivalent roles, which they solved by creating a 'market adjustment' that benefited no one.

Origin

Became standard practice in the 1990s as companies sought to defend against pay discrimination lawsuits.

Fun Fact

Companies that conduct rigorous pay calibration audits typically uncover 10-15% unexplained pay gaps, yet most never publish their findings.

Source: Compensation Management

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