You Bought the Compensation Analysis, Make Sure You Understand It It is important to understand the terminology used to express the statistics presented in compensation analyses. The terminology used expresses both the nature of an employee's pay and where the levels of pay fit within the continuum of the employee's peer group. Making the most of your answers can involve any of the following: Interpreting Your Answers Base(Base pay) The fixed portion of compensation paid for an employee's fulfillment of a job's essential functions. Base pay does not include differentials, premiu... view article details