Final answer:
An organization conducts a compa ratio analysis to understand pay distributions, create a competitive pay structure, and participate in salary surveys.
Step-by-step explanation:
An organization should conduct a compa ratio analysis to understand the distribution of employees within pay ranges. This analysis helps the organization identify any pay disparities within the company and ensure that employees are being compensated fairly. For example, a compa ratio analysis can reveal if certain groups of employees are being paid below or above the market average, which can then be addressed by adjusting salaries or implementing a new pay structure. Additionally, a compa ratio analysis can help the organization participate in salary surveys to benchmark their pay practices against industry standards and ensure they are competitive in attracting and retaining talent.