Richard's job has a compa-ratio of 0.85.What does this ratio tell about Richard's pay rate?
A)It is highly competitive with the market.
B)It is not competitive with the market.
C)There is no way to judge its competitiveness.
D)You need more information to judge it.

Question

Quizplus · Accepted Answer

A compa-ratio of 0.85 indicates that Richard's pay rate is not competitive with the market. This ratio compares an employee's actual salary to the midpoint of the salary range for their position within the company. A compa-ratio below 1.0 means the employee is being paid below the midpoint, which suggests that their pay rate is not competitive. A compa-ratio of 1.0 would indicate that the employee is paid at the midpoint, which is considered competitive.

Richard's Job Has a Compa-Ratio of 0