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Compa ratio Compa ratio , also known as a comparative ratio, is a metric that compares an individual’s or group’s salary to the midpoint of a defined salary range. HR term example: “The HR department analyzed the compa ratio to assess the fairness of our salary distributions.” ” 3. ” 9. ” 10.
Conventional practice is to hire most new people into their jobs at salary levels below their market midpoint or Market Reference Point (MRP) and to move grade structures maybe half as much as the anticipated general market movement each year. The issue is simple and clear.
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