What does a compa-ratio of greater than 1 mean?
A) Employees, on average, are being paid above the midpoint at that firm.
B) The majority of employees are in the first pay quartile.
C) The firm is paying their employees in the bottom half of the pay range.
D) The firm has only a minority of their employees in the top pay bracket.

Question

Quizplus · Accepted Answer

A compa-ratio of greater than 1 means that the average employee is being paid above the midpoint of the pay range. This indicates that the firm values their employees and is willing to pay them more than the industry average.

What Does a Compa-Ratio of Greater Than 1 Mean