##### Asked by: Nolan Cortacero
asked in category: General Last Updated: 2nd February, 2020

# What is considered a good compa ratio?

Typically you may want to see your employees between 75% - 125%. Depending on your company though, the compa-ratios could average around 86% - 90%.

Besides, what is a good compa ratio?

“A commonly accepted range for compa-ratios is 80% to 120%, which in turn can be divided into five zones, ie: 80-87% 88-95% 96-103% 104-111%

Also Know, how do you interpret compa ratio? A compa-ratio divides an individual's pay rate by the midpoint of a predetermined salary range. A compa-ratio of 1.0 means that the employee is paid at the exact midpoint of the range, whereas values higher or lower than 1.0 indicate how they are paid relative to the midpoint.

Similarly, you may ask, what is average compa ratio?

A Compa-Ratio of 1.00 or 100% means that the employee is paid exactly what the industry average pays and is at the midpoint for the salary range, A ratio of 0.75 means that the employee is paid 25% below the industry average and is at the risk of seeking employment with competitors at a higher pay that is perceived

What is midpoint in salary range?

Some employers establish minimum and maximum salary levels at 75 percent and 125 percent of the midpoint, respectively. For example, if the salary range for an executive assistant is \$56,000 to \$94,000, the midpoint is \$75,000, which means the employee is fully capable of performing all the functions of the job.

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