A human resource department is evaluating its pay structure. A compensation specialist computes the compa-ratio of the designers and determines that it is 1.4. What problem is most likely to result from a compa-ratio of this size

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29-04-2022
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A human resource department is evaluating its pay structure. A compensation specialist computes the compa-ratio of the designers and determines that it is 1.4. What problem is most likely to result from a compa-ratio of this size

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Tundexi Tundexi · Answer 1 · 2022-05-04T13:12:58+02:00

The problem that is most likely to result from a compa-ratio of this size is when the company difficulty keeping costs under control.

What is a compa-ratio?

This is a ratio that are used by compensation professionals to assess the competitiveness of an employee's pay level.

The ratio accesses the current pay rates as a percentage of range midpoints to know whether know wheter the employee is paid below or above market rates.

Howwver, when the compa-ratio of 1.4 is gotten, then, this happens because the company difficulty keeping costs under control.

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