What is Compaq Ratio in HRM? PDF Download

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Compaq Ratio Definition

Compaq Ratio Explanation

The formula regularly utilized by remuneration experts to evaluate the aggressiveness of a worker's compensation level includes figuring a '"compa-proportion'". Compa-proportion is the short structure for Comparative proportion. Compa-proportion is determined as the representative's present pay isolated by the present market rate as characterized by the organization's focused compensation strategy. Compa-Ratios are position explicit. Each position has a compensation extend that incorporates a base, a midpoint, and a greatest. These three qualities speak to industry midpoints for the position. A Compa-Ratio of 1.00 or 100% implies that the representative is paid precisely what the business normal pays and is at the midpoint for the compensation go, A proportion of 0.75 implies that the worker is paid 25% underneath the business normal and is at the danger of looking for work with contenders at a more significant salary that is seen fair. A proportion of 1.15 compa-proportion would mean the worker is paid over the business normal.

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