You are considering employees who can be described in the following ways. According to a typical pay adjustment matrix, which combination of factors will result in the largest pay raise?
A)has a compa-ratio of 115 and exceeds performance expectations
B)has a compa-ratio of 96 and meets performance expectations
C)has a compa-ratio of 115 and meets performance expectations
D)has a compa-ratio of 85 and fails to meet performance expectations

Question

Quizplus · Accepted Answer

A typical pay adjustment matrix often rewards employees who are performing at or above expectations and whose pay is below the midpoint (100% compa-ratio) to bring them closer to market rates. An employee with a compa-ratio of 96 and who meets performance expectations is likely to receive a larger raise to adjust their pay towards the market rate, compared to those with higher compa-ratios or lower performance.

You Are Considering Employees Who Can Be Described in the Following