To calculate the average salary, we add all the salaries in the selected group and divide the sum by the number of records.
The average salary represents what the “average employee” earns. It can be affected by high salaries or low salaries at the distribution’s extremes. So, for example, the average will not be a good measure unless you filter by annual budget because a team member at $50M/yr organization makes substantially more than individuals at organizations with a $1M operating budget.