Calculator Inputs
Formula Used
The tool uses standard compensation benchmarking ratios.
- Compa Ratio = Salary ÷ Benchmark Midpoint
- Position vs Midpoint = (Compa Ratio − 1) × 100%
- Range Penetration = (Salary − Min) ÷ (Max − Min)
- Gap to Midpoint = Midpoint − Salary
- Gap to Target = (Midpoint × Target Compa) − Salary
How to Use This Calculator
- Enter salary and the benchmark midpoint for the role.
- Add range min and max to see range penetration.
- Set a target compa ratio for planning adjustments.
- Use bulk mode to benchmark multiple employees at once.
- Review bands, gaps, and notes, then export reports.
Example Data Table
| Employee | Salary | Midpoint | Range Min | Range Max | Level | Location |
|---|---|---|---|---|---|---|
| Ayesha Khan | 62,000 | 70,000 | 56,000 | 84,000 | L3 | Karachi |
| Omar Ali | 91,000 | 90,000 | 72,000 | 108,000 | L4 | Lahore |
| Sara Ahmed | 48,000 | 60,000 | 48,000 | 72,000 | L2 | Islamabad |
Pay positioning signals
Compa ratio translates salary into a comparable market signal. A value of 1.00 means pay matches the midpoint for that job family, level, and location. Values below 0.90 often indicate developing pay, while values above 1.10 may reflect scarce skills or retention premiums. Use the band output to separate normal variance from exceptions, and document business reasons for every outlier so decisions remain explainable. Track changes over time to confirm adjustments stick.
Benchmark data hygiene
Benchmarking is only as strong as the reference data behind the midpoint. Align job codes, level definitions, and geography before importing ranges. If midpoints come from surveys, record the effective date, aging factor, and currency conversion method. Inconsistent sources create false gaps and noisy trend lines. Use the bulk CSV mode to standardize column names, then validate that min is below midpoint and max is above it for each row every time.
Range penetration and progression
Range penetration complements compa ratio by showing where pay sits between minimum and maximum. Early‑career employees may cluster near 0–35% penetration, while seasoned contributors often sit near 60–85%, depending on philosophy. When penetration exceeds 100% the tool flags pay above range, which can signal compression, legacy pay, or a mis-leveled role. Review penetration alongside performance history to separate earned progression from drift. Use penetration to design step increases and promotion readiness thresholds.
Compression and equity checks
Team audits reveal compression when new hires approach or exceed incumbents at the same level. Sort results by level and compa ratio to spot clusters above 1.10 or pockets below 0.90. Pair this with demographic slices in your HRIS to validate pay equity patterns, but avoid overinterpreting small samples. If two employees share role and scope yet compa differs materially, capture the driver: tenure, skills, ratings, or negotiated offers and market scarcity.
Budgeting and action planning
Budget planning improves when you quantify gaps to midpoint and to a chosen target compa ratio. The gap fields estimate the one‑time adjustment needed to move pay to policy, allowing leaders to compare scenarios. For example, setting a target of 1.03 can prioritize near‑midpoint alignment while keeping spend controlled. Export CSV for modeling, then use PDF snapshots for approvals. Re-run the tool after merit cycles to confirm outcomes and reduce drift quarterly.
FAQs
1) What is a compa ratio benchmark?
A compa ratio benchmark compares an employee’s salary to the market midpoint for a matched role, level, and location. It summarizes pay position as a single number that is easy to audit across teams.
2) What midpoint should I use?
Use the midpoint from your approved pay structure or the survey-derived midpoint for the correct job match. Ensure you apply consistent aging, currency conversion, and geographic differentials across all employees.
3) Why add range minimum and maximum?
Min and max enable range penetration, which shows where pay falls inside the range. This helps separate “below midpoint but still in range” cases from salaries that are truly outside policy boundaries.
4) How should I interpret bands like below range or high?
Bands are guidance for triage, not automatic decisions. Combine banding with performance, skills scarcity, tenure, and internal equity. Update thresholds to match your pay philosophy and budget constraints.
5) What does “gap to target” mean?
Gap to target estimates the increase or decrease needed to reach your chosen target compa ratio. It is useful for scenario planning, but approvals should consider role scope, timing, and retention risk.
6) Is bulk mode safe for sensitive pay data?
The tool processes inputs on your server when hosted. Use HTTPS, access controls, and secure logs. If testing publicly, use anonymized data and remove names before exporting files.