Richard's job has a compa-ratio of 0.85.What does this ratio tell about Richard's pay rate?
A)Richard's pay is highly competitive with the market.
B)Richard's pay is not competitive with the market.
C)There is no way to judge the competitiveness of Richard's pay.
D)You need more information to be able to judge Richard's pay.

Question

Quizplus · Accepted Answer

A compa-ratio is the ratio of an employee's current salary to the midpoint of the salary range for their position. A ratio of 1.0 means the employee's salary is at the midpoint, while a ratio of less than 1.0 means their salary is below the midpoint. Richard's compa-ratio of 0.85 indicates that his salary is not competitive with the market, as he is earning only 85% of what is typically paid for his position.

Richard's Job Has a Compa-Ratio of 0