Employee inputs
Example data table
| Employee | Job level | Salary | Pay period | FTE % | Location diff % | Midpoint | Range min | Range max |
|---|---|---|---|---|---|---|---|---|
| Ayesha | L3 | 72,000 | Annual | 100 | 0 | 80,000 | 68,000 | 96,000 |
| Bilal | L3 | 6,500 | Monthly | 100 | 5 | 80,000 | 68,000 | 96,000 |
| Sana | L3 | 40 | Hourly | 80 | 0 | 80,000 | 68,000 | 96,000 |
Formula used
- Annualized Salary = Base Salary × Periods/Year × (FTE% ÷ 100) × (1 + LocationDiff% ÷ 100)
- Compa Ratio = Annualized Salary ÷ Midpoint
- Range Penetration (optional) = (Annualized Salary − RangeMin) ÷ (RangeMax − RangeMin)
How to use this calculator
- Set the job level header, currency, and band thresholds.
- Add one row per employee and enter base salary and midpoint.
- Select the pay period so salary is annualized correctly.
- Adjust FTE% for part-time roles and add location differential when applicable.
- Optionally enter range min/max to compute range penetration.
- Click Calculate to view the summary and employee table above.
- Use CSV/PDF downloads for compensation reviews and audit trails.
Compa ratio as a level health indicator
Compa ratio summarizes how employee pay compares to the midpoint for a job level. A tight cluster near 1.00 often reflects consistent hiring and promotions. When averages drift below 0.90, teams may see retention pressure and slow internal mobility. When averages exceed 1.10, budgets can tighten and future offers may compress pay. Use the band counts to prioritize review discussions for the level. Track changes monthly to monitor pay drift.
Annualization choices that change outcomes
This calculator standardizes inputs by converting pay to an annualized value. Monthly, bi-weekly, and hourly figures can look similar until annualization is applied. For hourly roles, the default assumes 2,080 hours per year, which can materially shift compa for shift-based schedules. If your policy uses different hours or periods, switch to custom periods per year. Consistent annualization ensures level comparisons remain meaningful. Document your periods so reports stay comparable.
Using percentiles to spot pay spread
Percentiles show how pay is distributed within the level. If P25 is 0.85 and P75 is 1.05, the spread suggests a healthy mix of tenure and performance differentiation. If P25 is 0.70 and P75 is 1.20, the spread may indicate offer exceptions, rapid growth, or uneven progression. Pair percentiles with the calculated table to identify outliers worth validating against job scope. Investigate gaps with tenure, performance, and location.
Range penetration for structured bands
When you provide range minimum and maximum, range penetration adds context beyond midpoint. Two employees can have the same compa while sitting in different parts of the band if ranges vary by geography or market cut. Penetration near 0.20 can signal early-in-level positioning; values near 0.80 can signal maturity or promotion readiness. Use penetration with the band labels to guide adjustments that keep employees inside the range. Always confirm min and max reflect policy today.
Practical actions for pay planning
Start with the “Below band” list and confirm that midpoint sources share the same effective date and survey scope. Next, review “Above band” cases for compression, critical skills premiums, or promotion timing. Use location differential and FTE inputs to normalize part-time and geo adjustments before recommending changes. Export CSV for modeling scenarios and the PDF for audit-ready documentation across cycles and compensation committees. Combine results with manager context before final decisions.
FAQs
1) What is a good compa ratio target for a job level?
Many programs aim for most employees to sit near 1.00, often within a band like 0.80–1.20. Your target depends on market strategy, level maturity, and how aggressively you hire for scarce skills.
2) Should I include bonuses or equity in the salary field?
This tool is designed for base pay versus a base-pay midpoint. If you use total cash, ensure the midpoint is also total cash. Mixing pay types will distort the compa ratio and the band distribution.
3) Why does FTE % affect annualized salary?
FTE normalizes part-time roles to an annualized equivalent. For example, 80% FTE will reduce annualized pay to reflect expected working time, making comparisons fair when employees have different schedules.
4) What does location differential represent?
Location differential applies a percentage factor to adjust pay for geography. Use it when your compensation policy adds or subtracts pay based on region, and keep the midpoint consistent with that policy.
5) When should I use range penetration instead of compa ratio?
Use compa ratio for midpoint comparisons and broad equity checks. Use range penetration when you manage structured bands and want to see where pay sits between minimum and maximum for the level.
6) How can I use the exports in compensation cycles?
Download CSV to build scenario models, budget rollups, and manager worksheets. Download PDF to share a consistent snapshot for approvals, audits, and documentation, especially when changes must be traceable.