What does a compa-ratio of greater than 1 mean?
A) Employees,on average,are being paid above the midpoint in the pay range.
B) The majority of employees are in the first pay quartile.
C) The firm is paying their employees in the bottom half of the pay range.
D) The firm has only a minority of their employees in the top pay bracket.

Question

Quizplus · Accepted Answer

A compa-ratio greater than 1 means that on average, employees are being paid above the midpoint in the pay range. To calculate compa-ratio, divide an employee's current salary by the midpoint of the pay range for their position. If the result is greater than 1, it means the employee's salary is above the midpoint.

What Does a Compa-Ratio of Greater Than 1 Mean