Definition
Short for comparative ratio, measuring how an employee's pay compares to the market midpoint for their role. The metric that confirms your suspicions about being underpaid weren't just paranoia.
Example Usage
My compa-ratio of 0.78 explains why I've been refreshing LinkedIn Jobs during meetings.
Origin
Developed as compensation analysis shorthand in the 1970s-1980s
Fun Fact
A healthy compa-ratio distribution across a department should resemble a bell curve, but usually looks more like a canyon with management on one peak.
Source: Compensation analytics and benchmarking terminology
Related Terms
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