Compensation & Benefits

Compa-Ratio

Also known as: Comparative Ratio Compensation Ratio Salary Ratio

Definition

The Compa-Ratio (short for Comparative Ratio) compares an employee's actual salary to the midpoint of their salary range or market rate for their position. A compa-ratio of 1.00 (or 100%) means the employee is paid exactly at the midpoint, while values below 1.00 indicate below-midpoint pay and values above 1.00 indicate above-midpoint pay. This metric is essential for ensuring internal pay equity, managing salary ranges effectively, and making informed compensation decisions.

In Deckata: Compa-Ratio is automatically calculated from your HR systems and updated in real-time—no spreadsheets or manual work required.

How to Calculate

Individual Compa-Ratio

Formula
Employee's Actual Salary / Salary Range Midpoint
Example
Employee's Salary: $75,000
Range Midpoint: $80,000
Calculation: $75,000 / $80,000 = 0.9375
Compa-Ratio: 0.94 (or 94%)
A compa-ratio of 0.94 means the employee is paid 6% below the midpoint. Typically, ranges are 0.80-1.20 (80%-120%), with new hires often starting at 0.85-0.95 and top performers reaching 1.10-1.20.

Skip the manual calculations

Deckata automatically pulls data from all your HR systems, calculates Compa-Ratio in real-time, and updates your executive decks instantly.

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How to Visualize

01

Distribution Histogram

Show the frequency distribution of compa-ratios across your population, with bins like <0.80, 0.80-0.90, 0.90-1.00, 1.00-1.10, 1.10-1.20, >1.20.

Best for: Understanding overall pay distribution, identifying outliers, assessing range penetration
Add vertical lines at key thresholds (0.80, 1.00, 1.20) to show range boundaries. A healthy distribution is often bell-shaped around 0.95-1.05. Heavy concentrations at range max (>1.20) may indicate compressed ranges or salary management issues.
02

Scatter Plot by Tenure

Plot individual compa-ratios (y-axis) against years of service (x-axis), with each point representing one employee.

Best for: Identifying tenure-based pay compression, understanding career progression patterns
Add a trend line to see if compa-ratio increases with tenure. If the line is flat or negative, you may have pay compression where new hires earn as much as veterans. Color-code by performance rating for additional insight.
03

Profile Jitter Plot

Plot average compa-ratios for each job profile, using random noise for the y-axis to provide visual separation. Color-code by location, job-family, or department for additional insight.

Best for: Identifying outliers, identifying clusters
Note any obvious outlier clusters for futher analysis on other metrics, such as Attrition Rates or Employee Engagement.
04

Heat Map Matrix

Two-dimensional heat map showing average compa-ratios by two factors simultaneously (e.g., department × performance rating, or tenure band × job level).

Best for: Advanced equity analysis, identifying intersection effects, root cause investigation
Use diverging color scale centered at 1.00. Hot spots (dark red) show overpaid groups; cold spots (dark blue) show underpaid groups. This reveals patterns like 'high performers in Dept X are underpaid' that simple averages miss.

Stop manually calculating Compa-Ratio

Deckata automatically calculates Compa-Ratio, creates presentation-ready visualizations, and updates your executive decks in real-time—freeing you to focus on strategic insights instead of spreadsheet work.