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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…

Total Rewards

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)
  • B
    3% (1)
  • C
    6% (2)
  • D
    91% (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.

Topics

#compa-ratio#market pricing#pay positioning#compensation benchmarking

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