In merit pay programs,an individual's compa-ratio represents his or her
A)ability to multitask.
B)performance rating.
C)position in the pay range.
D)knowledge of business.
E)ratio of pay to benefits.

Question

Quizplus · Accepted Answer

Compa-ratio represents an individual's position in the pay range by comparing their actual pay with the midpoint of the pay range for their position. A compa-ratio of 1.0 means the employee's pay is exactly at the midpoint, while a compa-ratio above or below 1.0 indicates that the employee's pay is either above or below the midpoint. This is important in merit pay programs because employees who are above the midpoint are less likely to receive a merit increase, while those who are below the midpoint are more likely to receive one.

In Merit Pay Programs,an Individual's Compa-Ratio Represents His or Her