What is Compa-Ratio
Compa-Ratio, also called Compensation Ratio, is a metric used by organisations to assess the competitiveness of an employee's salary with the midpoint or market rate for their position. It is calculated by dividing the actual salary of an employee by the midpoint of the salary range for their job. A Compa-Ratio above 1 indicates that an employee's salary is above the midpoint, suggesting potential over-payment, while a ratio below 1 suggests the salary is below the midpoint.
