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.
Sources
- What Is A Compa Ratio & How Is It Used? - Forbes - forbes.com
- Understanding Compa Ratio 75: Definition, Importance, and ... - salarycube.com
- The web page with info on - Example Source - praisidio.com
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