Compaq Ratio Definition and Explanation PDF Download

Learn Compaq Ratio definition in hrm with explanation to study “What is Compaq Ratio”. Study compaq ratio explanation with HRM terms to review HRM course for online MBA programs.

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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