Compa-ratio and range position, explained
Read how and are worked out, and what they tell you about an employee’s pay. Both need the employee’s grade to match a ; without one there is nothing to measure against, and the product shows a dash.
Compa-ratio
Section titled “Compa-ratio”Compa-ratio compares an employee’s base pay with the midpoint of their pay band:
compa-ratio = base pay ÷ band midpoint
At 1.00 the employee is paid exactly at the midpoint; below 1.00 they’re paid under it, and above 1.00 over it. The People list and a ’s Compa column show it as a whole percentage, so 0.95 reads as 95%.
Range position
Section titled “Range position”Range position, labelled Range penetration on a worksheet row, measures where the pay sits across the whole band, from its minimum to its maximum:
range position = (base pay − band minimum) ÷ (band maximum − band minimum)
The band’s minimum is 0% and its maximum is 100%, so 50% is halfway across it. It isn’t capped: pay below the minimum reads below 0%, and pay above the maximum reads above 100%.
A worked example
Section titled “A worked example”An employee is paid 95,000 in a pay band whose minimum is 80,000, midpoint 100,000 and maximum 120,000.
| Before | After a 5% merit increase | |
|---|---|---|
| Base pay | 95,000 | 99,750 |
| Compa-ratio | 95,000 ÷ 100,000 = 0.95, shown as 95% | 99,750 ÷ 100,000 = 0.9975, shown as 100% |
| Range position | 15,000 ÷ 40,000 = 37.5% | 19,750 ÷ 40,000 = 49.4% |
The compa-ratio after the increase is 0.9975, just under the midpoint, even though it’s shown rounded to 100%. Range position is kept to four decimal places, so 49.375% is stored as 0.4938 and shown as 49.4%.
On a worksheet, a row’s detail shows each measure for the pay you’re proposing, with the current value beside it as was, so you can see how a recommendation moves the employee through the band before you submit it.
See the math
Section titled “See the math”Hover a compa-ratio, tab to it, or tap it on a touch screen, and a card shows the figures it comes from: the employee’s current base, the midpoint of their band and the result, such as $142,000 ÷ $154,000 = 92% · Below midpoint. With no pay band, the card says the grade matches none. In a worksheet row’s detail, the range position and the proposed compa-ratio have cards of their own.
The card appears on a worksheet, and on the and a that an approver reviews. It shows the same figures in each place.
Where they are used
Section titled “Where they are used”- The People list shows each employee’s compa-ratio, when your can see it.
- A worksheet shows the compa-ratio in its Compa column, and both measures in each row’s detail.
- A groups employees by their compa-ratio into four columns: below 0.80, 0.80 up to 1.00, 1.00 up to 1.20, and 1.20 or above. An employee with no pay band falls in its No pay band column.