Measure pay versus market and ranges with confidence. View compa ratio, range position, and adjustments. Export results for clean reports and faster compensation decisions.
| Employee | Base pay | Market reference | Compa ratio | Interpretation |
|---|---|---|---|---|
| Ayesha K. | PKR 2,400,000 | PKR 2,800,000 | 0.8571 | Below market |
| Hassan M. | PKR 3,000,000 | PKR 3,000,000 | 1.0000 | Aligned with market |
| Maryam S. | PKR 3,600,000 | PKR 3,200,000 | 1.1250 | Above market |
Market compa ratio compares an employee’s pay to a reliable market reference, such as a survey median or internal midpoint. A ratio of 1.0000 indicates pay matches the reference for the selected basis, while 0.9000 suggests the employee is paid ten percent below that benchmark. Ratios help HR teams standardize decisions across roles, locations, and levels, especially when hiring velocity or inflation makes ranges move quickly.
Accurate outcomes depend on consistent pay basis and clean benchmarks. Use annual figures for annual surveys, or convert monthly amounts before entry. If you include bonus and allowances, select the total cash mode so the numerator reflects actual cash compensation. Market minimum and maximum add context by showing whether pay is within the intended band, not just near the midpoint. Confirm job match, geography, and company size to reduce survey noise, and refresh reference points at least annually when labor markets shift.
Below-market ratios often point to compression, retention exposure, or an outdated range. Above-market ratios may be justified by scarce skills, strong performance, or criticality, but they can raise internal equity concerns. The calculator’s percent-to-market view translates the ratio into an intuitive percentage, making it easier to communicate recommendations to managers and finance partners.
Targets translate philosophy into numbers. For example, a target of 1.00 aligns to market, 0.95 supports cost discipline, and 1.05 reinforces premium positioning. The tool estimates the adjustment needed to reach the target using the same pay mode you selected. Positive adjustments indicate increases; negative adjustments highlight potential over-target placements that may require slowed progression.
When range minimum and maximum are provided, range position shows where pay sits on a 0–100 scale. This supports governance by flagging employees below minimum or above maximum and by validating promotion placements. Pair results with performance, tenure, and budget limits, then document the decision rationale in the notes field so downstream reviewers can audit changes consistently. For large populations, review distributions by level to spot systemic gaps, and prioritize adjustments where turnover risk and business impact are highest.
1) What is a good compa ratio?
Many programs target 0.95–1.05 around the market reference. The right band depends on your pay philosophy, role criticality, and budget, so interpret ratios alongside performance and experience.
2) Should I use base pay or total cash?
Use base pay when your benchmark is base-only. Use total cash when the market reference includes incentive opportunity and you want a fuller view of cash compensation.
3) Why do I see a negative adjustment?
A negative adjustment means the current pay used is above your target ratio for the market reference. It can signal slowed progression, red-circling, or a need to revisit the benchmark match.
4) How do market minimum and maximum help?
Min and max show whether pay sits within the intended range. They help flag below-minimum placements and above-maximum exceptions that typically require approvals or documented justification.
5) Can I compare monthly pay to annual market data?
You can, but convert to the same basis first. For example, multiply monthly pay by 12 when your reference is annual, and keep bonus and allowances on the same basis for consistency.
6) What inputs most often cause misleading results?
Mismatched job leveling, wrong geography, stale survey cuts, and inconsistent pay basis are common issues. Validate the benchmark selection and refresh references regularly when markets change.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.