Analyzer Inputs
Example Data Table
| Employee ID | Name | Role/Level | Location | Currency | Basis | Pay | Midpoint | Min | Max | Compa |
|---|---|---|---|---|---|---|---|---|---|---|
| E-1021 | Ayesha Khan | HRBP II | Karachi | PKR | Annual | 2,100,000 | 2,300,000 | 1,900,000 | 2,700,000 | 0.9130 |
| E-1177 | Hassan Ali | Recruiter I | Lahore | PKR | Annual | 1,450,000 | 1,500,000 | 1,200,000 | 1,800,000 | 0.9667 |
| E-1304 | Sara Ahmed | People Ops Lead | Islamabad | PKR | Annual | 3,400,000 | 3,000,000 | 2,500,000 | 3,600,000 | 1.1333 |
Formula Used
- < 0.85 significantly below market
- 0.85–0.95 below market
- 0.95–1.05 market-aligned
- 1.05–1.15 above market
- > 1.15 significantly above market
How to Use This Calculator
- Choose a pay basis and keep it consistent across all figures.
- Enter employee pay and the market midpoint for the same level.
- Add range minimum and maximum to unlock quartile insights.
- Set a target compa ratio if you use differentiated targets.
- Submit to view recommendations, risk flags, and deltas.
- Export the history as CSV or create a PDF snapshot.
Compensation Insights
Market Reference Integrity
Compa ratio is only as strong as the midpoint you choose. Use current salary surveys or a validated internal market rate by level, location, and job family. If you store midpoints monthly, track drift; a 6% midpoint increase turns a 1.00 compa into 0.94 without any pay change. Keep currency and pay basis consistent, and document the benchmark source for every record.
Range Architecture Insights
Add range minimum and maximum to reveal where pay sits inside the band. Range penetration translates pay into a 0–100% position and assigns quartiles (Q1–Q4). Many organizations use an 80–120 or 85–115 spread around midpoint. In many programs, Q1 represents early-in-role, Q2 indicates developing proficiency, Q3 reflects fully effective performance, and Q4 aligns with advanced scope. Out-of-range values highlight leveling issues or stale ranges.
Equity and Compression Signals
Low compa ratios can indicate retention risk, especially in critical skills where external offers move faster than cycles. High compa ratios may signal compression, limited growth runway, or a role mis-match. Compare outcomes across peer groups: when two employees differ by 12% in compa with similar tenure and performance, investigate job leveling, starting pay practices, and recent promotions. Use medians by cohort and check adverse impact indicators before finalizing actions. Use flags to prioritize review conversations.
Budget Planning Scenarios
This tool estimates delta-to-target pay using your target compa ratio. A delta of 150,000 in annual pay suggests the cost to reach the target midpoint alignment. Aggregate deltas across a team to size an equity pool; separate urgent cases (below minimum) from strategic cases (critical roles) and routine cases (within market). If budgets are tight, phase adjustments across two cycles and prioritize the biggest gaps. For above-range cases, plan lump sums and incentives rather than base increases.
Governance and Documentation
Compensation decisions should be auditable. Capture role, location, performance, and time-in-role to justify differentiated actions. Record exceptions, approvals, and effective dates in your HRIS, and rerun analyses after merit or promotion cycles to confirm movement. Limit access to data, and share aggregated views with leaders. When leaders ask “why this increase,” a consistent compa framework, clear target, and exported report reduce bias and strengthen trust.
FAQs
1) What is a compa ratio?
A compa ratio compares an employee’s pay to the market midpoint for the same role and level. A value of 1.00 means pay equals midpoint; below 1.00 is under midpoint, above 1.00 is over midpoint.
2) Should I use base pay or total cash?
Use the pay element that matches your midpoint source. If the midpoint is base salary, enter base salary. If it represents total cash, include guaranteed cash components consistently across all employees you compare.
3) How do I choose a target compa ratio?
Common targets are 1.00 for fully proficient employees and 0.90–0.95 for early-in-role. Tie targets to leveling, experience, performance expectations, and your compensation philosophy, then apply them consistently.
4) What does range penetration tell me?
Range penetration shows where pay sits between your range minimum and maximum. It helps spot employees stuck near minimum, employees approaching maximum, and whether internal growth room still exists within the band.
5) Why do I see a negative delta to target?
A negative delta means the employee is already above the target pay based on midpoint and target compa. In those cases, consider smaller base increases, incentives, or growth through promotion rather than pay corrections.
6) Can I export results for leadership reviews?
Yes. Download CSV for detailed filtering and rollups, or download PDF for a clean snapshot of results, recommendations, and recent calculations. Store exports securely and avoid sharing identifiable data broadly.