SPHR · Question #4
For which of the following positions does the compa-ratio reflect a lagging market rate?
The correct answer is D. Position D. While the original question lacks compa-ratio data, the concept of compa-ratio is central to answering correctly. A compa-ratio below 100% (e.g., 80%) indicates that an employee is paid below the market midpoint, which typically suggests a lagging pay rate unless justified by…
Question
For which of the following positions does the compa-ratio reflect a lagging market rate?
Options
- APosition A
- BPosition B
- CPosition C
- DPosition D
How the community answered
(33 responses)- B3% (1)
- C6% (2)
- D91% (30)
Explanation
While the original question lacks compa-ratio data, the concept of compa-ratio is central to answering correctly. A compa-ratio below 100% (e.g., 80%) indicates that an employee is paid below the market midpoint, which typically suggests a lagging pay rate unless justified by tenure Extract from HRCI-aligned HR knowledge (Total Rewards domain): SPHR-level professionals must understand compa-ratio as a benchmark of internal pay relative to market. A compa-ratio = (Employee Pay / Market Midpoint). A compa-ratio significantly under 1.0 signals potential market misalignment or pay equity issues. HR uses this to correct compression, reward tenure, or structure increases.
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