Compa Ratio is a metric that compares an employee’s actual salary to the midpoint of the salary range for their position, expressed as a percentage, to assess pay fairness.
- What is Compa Ratio?
Answer: It is a metric comparing an employee’s salary to the midpoint of their position’s salary range. - How is Compa Ratio calculated?
Answer: It is calculated by dividing the employee’s salary by the midpoint salary and multiplying by 100. - What does a Compa Ratio of 100% indicate?
Answer: It indicates the employee is paid at the midpoint of the salary range. - How can employers use Compa Ratio?
Answer: It helps ensure equitable pay and identify adjustments for underpaid employees. - What are the limitations of Compa Ratio?
Answer: It may not account for experience, performance, or market variations.
