Compa-ratio
A) is defined as the ratio of average pay to the midpoint of the pay range.
B) is defined as the ratio of the average pay for the grade divided by the minimum pay for the grade.
C) can range from 0 to 100 percent.
D) uses data from market-pay surveys.
E) measures the degree to which new skills learnt are consistent with the increases in pay.

Question

Quizplus · Accepted Answer

Compa-ratio is defined as the ratio of average pay to the midpoint of the pay range. It can range from 0 to 100 percent. It does not necessarily use data from market-pay surveys or measure the degree to which new skills learnt are consistent with the increases in pay. Option B is incorrect as it divides the average pay for the grade by the minimum pay for the grade, not the midpoint.

Compa-Ratio