The compa-ratio:
A)directly assesses the degree to which actual pay is consistent with the pay policy.
B)reduces the number of job levels to achieve more flexibility in job assignments.
C)reduces the opportunity for employee promotions.
D)supports pay based on employee skills.
E)directly assesses the relative labor costs.

Question

Quizplus · Accepted Answer

The compa-ratio directly assesses the degree to which actual pay is consistent with the pay policy. A compa-ratio less than 1.00 suggests that actual pay is lagging behind the policy, whereas a compa-ratio greater than 1.00 indicates that pay (and costs)exceeds that of the policy.

The Compa-Ratio