Actual pay is lagging behind the pay policy when the compa-ratio is:
A)greater than 1.00.
B)less than 1.00.
C)greater than 100.
D)in the range of 1 to 10.

Question

Quizplus · Accepted Answer

The compa-ratio compares the actual pay with the targeted pay for a particular position. When the compa-ratio is less than 1.00, it means that actual pay is below the targeted pay, and therefore, actual pay is lagging behind the pay policy. A compa-ratio greater than 1.00 indicates that actual pay is higher than the targeted pay, which would imply that pay policy is being exceeded. A compa-ratio greater than 100 is not a valid measure as it is mathematically incorrect. A compa-ratio in the range of 1 to 10 is also not a useful measure as it does not provide enough information to assess pay levels.

Actual Pay Is Lagging Behind the Pay Policy When the Compa-Ratio