Final answer:
An organization's overall average compa ratio can be below 1 due to various reasons, such as underpaying employees, uncompetitive compensation, many new employees, or narrow pay ranges.
Step-by-step explanation:
An organization's overall average compa ratio can be below 1 due to various reasons. One possible reason is that the organization is underpaying its employees. This means that the average salary of the employees is lower than what is considered fair or competitive in the industry.
Another reason could be that the organization's employee compensation is not competitive. This means that the organization is not offering competitive salaries and benefits compared to other companies in the same industry.
Additionally, if the organization has many new employees who are at a lower pay scale, this can bring down the overall average compa ratio. Lastly, if the organization's pay ranges are narrow, meaning there is a small difference between the lowest and highest salaries, the overall average compa ratio might be below 1.