Asked by Micaila Reinschild on Jul 01, 2024

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Which of the following is an indicator of how the salary of an employee relates to the midpoint of the relevant pay grade?

A) wage compression
B) red-circled rate
C) the compa-ratio
D) rate range
E) green-circled rate

Compa-Ratio

A metric used in human resource management to compare the salary of an individual to the midpoint of a salary range for their position or job classification.

Pay Grade

A step or level within an organization's pay structure that determines the range of pay rates for employees based on the complexity, responsibility, and skills needed for their jobs.

Midpoint

In human resources, it often refers to the middle value in a salary range for a particular position, serving as a benchmark for compensation levels.

  • Grasp the concept of pay grades, including how employee salaries relate to pay grade midpoints and rate anomalies.
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Verified Answer

NF
Nicole ForoghiJul 02, 2024
Final Answer :
C
Explanation :
The compa-ratio is a calculation used to determine how an employee's salary compares to the midpoint of the relevant pay grade. A compa-ratio of 1.0 means the employee is being paid exactly at the midpoint, a ratio above 1.0 means the employee is being paid above the midpoint, and a ratio below 1.0 means the employee is being paid below the midpoint.