Business Pitch Dictionary by pitch.dog
Performance, pay & rewards · Core

Market rate

Also called: market pay

ELI5

External pay level for comparable work under a defined benchmark.

Used in conversation

“The number is useful only if everyone calculates market rate the same way.”

Pitch context

You will see “Market rate” in organisation plans, workforce reviews, change programmes and people reports when the discussion reaches performance, pay & rewards.

Why it matters: In performance, pay & rewards, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 2

Direct term-level sources and supporting source families.