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What does a compa-ratio of 75 mean?

Understand the Problem

The question is asking for an explanation of the term 'compa-ratio' and specifically what a compa-ratio of 75 signifies in the context of salary or compensation analysis. The compa-ratio is a comparative measure used in compensation management to assess how an employee's pay compares to the market rate or the organization's pay structure.

Answer

75% of the midpoint salary

The final answer is that an employee with a compa-ratio of 75 is paid 75% of the midpoint salary for their position.

Answer for screen readers

The final answer is that an employee with a compa-ratio of 75 is paid 75% of the midpoint salary for their position.

More Information

A compa-ratio is used to determine how an individual’s salary compares to the midpoint of a salary range, useful for equity and competitiveness evaluations.

Tips

A common mistake is to assume the compa-ratio is a percentage of the maximum or minimum salary, rather than the midpoint.

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