Compa-ratio

Compa-ratio is math formula for comparing salaries. A number comparing a person's salary to other salaries for the same job; the comparison ratio is calculated by taking a person's salary and comparing it to the midpoint of other salaries (if a person earns $45,000 per year in a job where the salary midpoint is $50,000 per year, the compa-ratio is $45,000/ $50,000 = 90%).

Definition

According to the HRBoK Guide,

Compa-ratio. Math formula for comparing salaries. A number comparing a person's salary to other salaries for the same job; the comparison ratio is calculated by taking a person's salary and comparing it to the midpoint of other salaries (if a person earns $45,000 per year in a job where the salary midpoint is $50,000 per year, the compa-ratio is $45,000/ $50,000 = 90%).