Asked by Muhammad Haque on Jun 05, 2024
Verified
Compa-ratio
A) is defined as the ratio of average pay to the midpoint of the pay range.
B) is defined as the ratio of the average pay for the grade divided by the minimum pay for the grade.
C) can range from 0 to 100 percent.
D) uses data from market-pay surveys.
E) measures the degree to which new skills learned are consistent with the increases in pay.
Compa-ratio
A comparison ratio that measures an employee's salary relative to the median or midpoint of the market rate for their job.
Pay Range
The spectrum of compensation offered for different positions within a company, indicating the minimum and maximum pay for each role.
Market-pay Surveys
Studies or analyses performed to gather data on prevailing wage rates for different jobs in the market.
- Evaluate and determine compensation ratios (compa-ratios), comprehending their impact on pay structure administration.
Verified Answer
VM
Vinit MehtaJun 10, 2024
Final Answer :
A
Explanation :
Compa-ratio is defined as the ratio of average pay to the midpoint of the pay range. It can range from 0 to 100 percent and is a way to evaluate how much an employee is being paid compared to the midpoint of the pay range for their position. It does not necessarily involve market-pay surveys or the consistency of new skills learned with pay increases.
Learning Objectives
- Evaluate and determine compensation ratios (compa-ratios), comprehending their impact on pay structure administration.