Survey Methodology
Market percentile
Also called: percentile, P50, P75, 75th percentile
A statistical cut that shows where a given pay level sits in the overall market distribution.
Compensation surveys report data at multiple percentiles, typically the 25th, 50th, 75th, and 90th. Each percentile means the same thing it does in any statistical distribution — at the 50th percentile (median), half the market pays more and half pays less.
Common percentile choices for benchmarking:
- 25th percentile — used by lag-market employers (intentionally below median)
- 50th percentile (median) — used by match-market employers
- 75th percentile — used by lead-market employers (paying above median to attract talent)
- 90th percentile — used by employers paying premium for hot roles or key talent
Most surveys also report an "average" (mean), but the median is more commonly used for pay decisions because it's not skewed by outliers.