The following formula is used to calculate the salary range percentile:
\[ \text{SRP} = \frac{S - L}{H - L} \times 100 \]
Variables:
\(\text{SRP}\) is the salary range percentile
\(\text{S}\) is the specific salary
\(\text{L}\) is the lowest salary in the range
\(\text{H}\) is the highest salary in the range
A Salary Range Percentile is a statistical tool used to understand the distribution of salaries within a specific job or industry. It shows what percentage of workers earn less than a particular salary. For example, if a salary is in the 70th percentile, it means that 70% of workers in that field earn less than that amount, and 30% earn more. This can be useful for job seekers, employers, and researchers to understand compensation trends and make informed decisions.
Let's say we have the following details:
Specific Salary (S): $70,000
Lowest Salary in Range (L): $50,000
Highest Salary in Range (H): $100,000
First, we calculate the difference between the specific salary and the lowest salary:
\[ S - L = 70,000 - 50,000 = 20,000 \]
Next, we calculate the difference between the highest salary and the lowest salary:
\[ H - L = 100,000 - 50,000 = 50,000 \]
Then, we divide the first result by the second result and multiply by 100:
\[ \text{SRP} = \frac{20,000}{50,000} \times 100 = 40\% \]
Therefore, the salary range percentile is 40%.