Compa-Ratio

A compa-ratio is a comparison of an employee’s pay versus similar positions within comparable organizations. Sometimes referred to as “compensation” or “comparative” ratio, an employee’s compa-ratio is determined by dividing his or her salary by the market rate or applicable range midpoint. Simply put, compa-ratio = [actual salary / midpoint of pay range] X 100.

Example:

Base Salary	Market Rate/Range Midpoint	Compa-Ratio
$48,000	$53,957	89%

( 48,000 ÷ 53,957) x 100 = 88.95 %

Market Competitive Pay & Compa Ratio

A compa-ratio below 90% is identified as below market competitive pay. There could be valid reasons for lower pay based on experience, performance, etc.

Below 90% = Below Market Competitive Range; 90%-110% = Market Competitive Range or Exact Market Match; Above 110% = Above Market Competitive Range

How to Use a Salary Range (Staff)

The midpoint of a salary range is established from market data. An employee’s placement in a salary range is based on components such as the employee’s education, related experience, and performance.

Infographic explaining how different rates of pay align with the various percentiles of a salary range (Minimum, 25% percentile, mid-range, 75% percentile, and maximum).

How to Convert Hourly Rate of Pay to an Annualized Salary

Full-time employees who are 1.0 FTE and work 12 months, work 37.5 hours a week or 1,950 hours in a year.

To convert an hourly rate of pay to a salary for this type of an employee:

Hourly rate x 1,950 hours = Annualized Salary
Example: $15.50/hr x 1,950 = $30,225

Hourly employee’s working less than 37.5 hours a week and/or less than 12 months a year, will need to prorate their total number of hours worked in a year to calculate the annual salary. If employees have additional questions, please contact the Compensation team.

What if I have further questions about compensation at WVU?

Employees can contact the Compensation team at Compensation@mail.wvu.edu for more information.