Module Lesson
Quartiles and Salary Distribution
Use LQ, median, and UQ to understand market ranges.
Lesson Header
Lesson 3: Quartiles and Salary Distribution
Use quartiles to interpret salary ranges and market spread.
Lesson Summary
Quartiles show how salaries are distributed across the market. This lesson explains how to use the lower quartile, median, and upper quartile to evaluate pay positioning.
Concept Explanation
Quartiles divide salary data into four equal parts. The lower quartile (25th percentile) marks the point where 25% of the market pays below and 75% pays above. The median (50th percentile) marks the middle of the market. The upper quartile (75th percentile) marks the point where 75% pays below and 25% pays above.
Together, these measures show the market range rather than a single point. They help analysts understand dispersion and identify whether a role has a narrow or wide salary distribution in the market.
Quartiles are particularly useful when compensation strategy involves different positioning decisions. A role targeted at the lower quartile may suit cost-sensitive positions, while a role targeted at the upper quartile may support scarce skills or retention risk.
The difference between lower and upper quartiles is also a signal of market variability. Wide quartile spreads may indicate diverse job scopes, inconsistent matching, or a market with varied organizational types.
Quartiles are not just statistical labels. They are decision points that help organizations translate survey results into pay range policies and compensation positioning.
Professional analysis presents quartiles alongside min and max values to provide a full picture of pay distribution and outliers.
Deep Insight
- Quartiles show the market range, not a single “right” salary.
- Wide quartile spreads may indicate high role variability or weak matching.
- Median is a useful anchor, but quartiles guide strategic positioning.
- Outliers should be reviewed, not ignored or blindly averaged.
Practical Example
For a Procurement Officer role, the lower quartile is KES 90,000, median is KES 110,000, and upper quartile is KES 140,000. The range is wide, suggesting a mix of organizations with different complexity. A mid-sized NGO may target the median, while a logistics firm seeking scarce skills may target the upper quartile.
System Application
The Analysis Dashboard displays lower quartile, median, upper quartile, and min/max for each benchmark job. Use these indicators to interpret salary dispersion and identify positioning options.
Guided Activity
Distribution Interpretation
Select one benchmark job and interpret the LQ, median, UQ, min, and max values. Explain what the distribution suggests about the market.
Evidence: 250–500 words
Focus labels: Quartiles · Distribution · Market Range
Submission / Draft
Task: Distribution Interpretation
Evidence: 250–500 words
Focus labels: Quartiles · Distribution · Market Range
Reviewer Note Panel
Reviewer status: Draft
Focus on whether the learner demonstrates conceptual understanding and practical judgement, not memorization.
Navigation