← HR Metrics·Compensation & Benefits
Compa-Ratio
Ratio of actual pay to midpoint of salary range
How it’s computed
salary / range_midpoint
What the evidence shows
| Relates to | Effect (r) | N | Grade |
|---|---|---|---|
| Pay satisfaction | 0.23 | 100 | A |
| Job satisfaction | 0.15 | 100 | A |
| Voluntary turnover | -0.09 | 14191 | A |
What this metric can show you
Compa-Ratio can tell roughly 22 pre-built stories — each a designed scene the data either confirms or it doesn’t. Bring your numbers and the Story Finder runs every one of these shapes against them.
specific to compensation & benefits
A real gradient — now ask if it's pointed at value
compensation · T1
Below the market, across the board
compensation · T1
One group sits apart on a decision that should be neutral
fairness-equity · T1
Pay is drifting from plan
compensation · T1
universal shapes — any single metric can take these
A few large values are doing the talking
any focus · T1
A one-time event, not a trend
any focus · T1
It doesn't track — the premise is false
any focus · T1
It's concentrated — one group stands apart
any focus · T1
Scenes are pre-built; your data is the toggle. Browse the full deck or watch one play end-to-end in The Quiet Exodus.
Run it on your data
This metric is computed in the People Analytics Toolbox on your own numbers. See pricing — posted, no quotes.
sources: toolbox:metrics-catalog · principia:metrics
What the literature says
The measurement literature behind this signal — sourced, so you can defend it.
“What is a Compa-ratio and How Do You Calculate it?In chapter 5, I talked about the market ratio, as in how well your internal pay compares to the market rate. Now I want to explain something called the compa -ratio , which is the relationship of your actual pay to the midpoint…”
— Pay Mattersmatch 73%
“12.1.1 Salary Ranges, Range Spreads, Compa-Ratios, and “ Compe-Ratios”When considering your employee’ s likelihood of leaving the company, you should think about how their compensation compares to what “ the market” would offer them. By “ the market” offer I mean the best offer…”
— Strategic Compensation Talentmatch 70%
“Ranges should be designed to provide midpoints that reflect the “going rate” and are reasonably close to what the market establishes as the minimum and maximum for the job. Minimums that are too low will result in a company needing to pay an employee higher in the range in order…”
— Worldatwork Handbook Compensationmatch 68%
Resources: Pay Matters · Strategic Compensation Talent · Worldatwork Handbook Compensation