Which of following is a legitimate reason why a compa-ratio may be less than 1?
A) A majority of workers with high performance
B) The majority of employees may be new or recent hires
C) Low promotion rates
D) Turnover is low

Question

Quizplus · Accepted Answer

A compa-ratio compares an employee's current salary to the midpoint or market rate for their position. If the majority of employees are new or recent hires, they may not have had enough time to progress to the midpoint salary for their position, resulting in a compa-ratio less than 1. Option A, C, and D are incorrect because they do not necessarily affect the compa-ratio calculation. For example, if a majority of workers have high performance, their salaries may be above the midpoint, resulting in a compa-ratio greater than 1.

Which of Following Is a Legitimate Reason Why a Compa-Ratio