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Job Grades Salary Ranges
Job Grades Salary Ranges
Compa-ratios (CR)
Compa-ratios (CR)
a compa-ratio (comparative ratio) is a measure of the
extent which the average salaries in a grade deviate
from the target salary.
it is used to compare actual averages with the target
salary to indicate the extent which salary levels are
high or low.
the formula for calculating a compa-ratio is:
Average of all salaries in the grade
x 100
Midpoint of the salary range
a compa-ratio of 100 indicates that the average salary
is aligned to the midpoint of the salary grade and no
corrective steps need to be taken.
Compa-ratios (CR)
Compa-ratios (CR)
a compa-ratio of 80 would indicate a need to
investigate why average salaries were low and
possibly no longer competitive.
a compa-ratio of 120 would suggest either there
were a lot of long-service staff or that staff were
being overpaid, and that increases needed to be
modified.
compa-ratio analysis can reveal a situation
where earnings drift has taken place.
Competitive Posture (CP)
Competitive Posture (CP)
Competitive Posture is a measure of how competitive the
salary is with respect to a given market benchmark.
Competitive Posture can be used to measure the
competitiveness of both company’s or individual’s salary
competitiveness in the market
Competitive Posture for a company is computed as:
CR = Average of all Salaries in a given Job Grade
Market Benchmark Salary
Competitive Posture for an individual is computed by:
CR = Salary of the individual Employee
Market Benchmark Salary
Salary Administration
Salary Administration
Minimum Salary Points
1. Minimum salary for the grade
2. Minimum for Job In the market
3. Set com
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