Compa-Ratio

Compa-Ratio

What is Compa-Ratio? Definition and Examples

Compa-ratio measures how an individual's pay compares to the midpoint of their salary band, calculated as salary divided by band midpoint. A compa-ratio of 1.0 means someone is paid exactly at midpoint; below 0.8 or above 1.2 usually flags someone worth a closer look during a comp cycle. It's one of the fastest ways to spot pay compression or over-market pay at a glance.