Which measure of central tendency is NOT used to compare compensation?

The measure of central tendency that is not commonly used to compare compensation is the mode. While the mode represents the value that appears most frequently in a data set, it often has limited utility in compensation analysis.

In the context of compensation, employers and HR professionals typically focus on the median and mean to provide a clearer understanding of salary distributions. The median is particularly valuable because it offers a measure that is less affected by outliers or extreme values, making it more representative of the typical compensation within a group. The mean provides an average that can summarize the overall compensation when all values are considered, but it can be skewed by very high or very low salaries.

Standard deviation, while not a measure of central tendency, is also relevant as it assesses the dispersion or variation around the mean, helping to understand the range of salaries or pay equity within a group.

In contrast, the mode may not provide meaningful insights into compensation comparisons since it simply indicates the most common salary, which may not accurately reflect the overall pay structure or distribution. This makes it less useful in situations where understanding the typical compensation level is more important.