This spreadsheet shows each employee's computed compa ratio and... | Filo
This spreadsheet shows each employee's computed compa rati…
52K viewsJan 15, 2025
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Compa-Ratio: The Key to Fair and Competitive Pay Are you paying your talent what they're truly worth? Compa-ratio is your answer! This simple yet powerful metric shows how your employees' actual salaries compare to market midpoints. To calculate it: Compa-Ratio = Current Salary ÷ Salary Range Midpoint A ratio of 1.0 means you're right at market. Below 0.8? You're at risk of losing talent. Above 1.2? You might be overpaying. Why it matters: • Identifies pay inequities before they become problems
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Compa-Ratio: The Key to Fair and Competitive Pay Are you paying y…
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RajatCareerGuru on Instagram: "HR decides your salary using a hidden number called “Compa Ratio”—and you never see it. What is Compa Ratio? Your salary ÷ Midpoint of the role’s salary band. What HR does: • 80-90% compa ratio = Near minimum (lowest offer they can justify) • 100% compa ratio = At midpoint (fair market value) • 110%+ compa ratio = At maximum (top-tier offer) Most new hires are placed at 85% compa ratio—the lowest point HR can defend. You think: “This is my market value.” Reality: “
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RajatCareerGuru on Instagram: "HR decides your salary using a hidde…
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