Hi All,
I recently went for an interview and I was asked a question on Compa Ratio and some other terminologies which I had never heard of. Could any of you shed some light on this for me?
Regards,
Monica Kaushik
From India, Delhi
Acknowledge(0)
Amend(0)
11I recently went for an interview and I was asked a question on Compa Ratio and some other terminologies which I had never heard of. Could any of you shed some light on this for me?
Regards,
Monica Kaushik
From India, Delhi
Acknowledge(0)Amend(0)
Hello friend,
Thank you for the post. Posts like yours help us search for the meaning of such terms. Here is an explanation given at Comparatio - Wikipedia, the free encyclopedia.
Compa Ratio is a term used in the human resources specialty area of wage and compensation management. In its simplest form, it is the ratio of an employee's current wage to the organization's benchmark rate, usually the salary grade midpoint. Compa-ratios are normally expressed as a percentage of the benchmark. For example: An employee earns $45,000 per year in a job with a salary grade midpoint of $50,000. The equation is $45,000/$50,000 = 0.9. The employee is said to have a compa-ratio of 90%. Variations include: market compa-ratio or market ratio, target compa-ratio, group compa-ratios, wage index, competitive wage ratio. Compa-ratios are frequently used as one factor in wage increase matrices used to determine annual salary adjustments.
Regards,
Nishikant
From United States, Greensboro
Acknowledge(1)Amend(0)
Thank you for the post. Posts like yours help us search for the meaning of such terms. Here is an explanation given at Comparatio - Wikipedia, the free encyclopedia.
Compa Ratio is a term used in the human resources specialty area of wage and compensation management. In its simplest form, it is the ratio of an employee's current wage to the organization's benchmark rate, usually the salary grade midpoint. Compa-ratios are normally expressed as a percentage of the benchmark. For example: An employee earns $45,000 per year in a job with a salary grade midpoint of $50,000. The equation is $45,000/$50,000 = 0.9. The employee is said to have a compa-ratio of 90%. Variations include: market compa-ratio or market ratio, target compa-ratio, group compa-ratios, wage index, competitive wage ratio. Compa-ratios are frequently used as one factor in wage increase matrices used to determine annual salary adjustments.
Regards,
Nishikant
From United States, Greensboro
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Basics of Compensation Management.pdf
Compensation management.ppt