Question

The compa-ratio:

A. measures the degree to which actual pay is consistent with the pay policy
B. is defined as average pay for the grade divided by the minimum pay for the grade
C. can range from 0 to 100 percent. uses data from market-pay surveys
D. measures the degree to which new skills learnt are consistent with the increases in pay.

Answer 1

Option A is correct one.

measures the degree to which actual pay is consistent with the pay policy

Step-by-step explanation:

The compa-ratio measures the degree to which actual pay is consistent with the pay policy.

The formula commonly used by compensation professionals to assess the competitiveness of an employee's pay level involves calculating a ‘“compa-ratio’”. Compa-ratio is the short form for Comparative ratio