Asked by Andrea Barisic on Jul 20, 2024
Verified
Which compa-ratio suggests that,on average,employees are being paid above the mid-point of the range?
A) 0.01
B) 0.92
C) 1.00
D) 1.03
Compa-ratio
A comparative ratio used in compensation management to determine an employee's pay relative to the midpoint of the market or their pay grade.
Mid-point
The value that lies at the middle of a pay range for a given pay grade, often considered the market rate for a job.
- Grasp the significance of compa-ratios in evaluating compensation levels.
Verified Answer
KK
kafsheri KapedaniJul 26, 2024
Final Answer :
D
Explanation :
A compa-ratio (comparison ratio) is calculated by dividing an employee's salary by the midpoint of the salary range for their position. A compa-ratio of 1.00 means the employee is being paid exactly at the midpoint. A compa-ratio above 1.00, such as 1.03, indicates that, on average, employees are being paid above the midpoint of the salary range.
Learning Objectives
- Grasp the significance of compa-ratios in evaluating compensation levels.