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Professionals use the Compa-Ratio as a statistic or calculation to determine whether businesses are paying their workers fairly. It contrasts an employee’s pay at one company with that of an employee in a comparable job at another company. Compensation or comparison ratios are other names for compa-ratio. The abbreviation for comparative ratio is compa-ratio.
How is the Compa-Ratio determined?
The current market rate, as determined by the company’s competitive pay policy, is divided by the employee’s current salary to determine the compa-ratio.
Compa-Ratio Types
A person’s pay position in relation to the pay policy reference point for the range is described by their individual compa-ratio, which can be used to adjust their pay if it is too high or low.
Group Compa-Ratio: The link between practice and policy for the entire organization or a specific population group is measured by the group compa-ratio. The actual payment amount is calculated as a percentage of the total job reference point rates.
The mean compa-ratio The sum of each person’s ratio divided by the total number of people is the average ratio. As a result, it differs from a group comparison, which is predicated on the correlation between the sums of the job reference points of pay and the actual rates of pay.
