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Detailed compa-ratio analysis

gradar helps organisations use compa-ratio analysis to understand pay positioning, identify inconsistencies and support fair, transparent compensation outcomes.

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Four light green boxes with check icons and words: Positioning, Compression, Adjustments, Benchmarks.
Comparison of vague question 'Is this salary high or low?' and structured points on salary factors.

Answer the right pay questions

Compa-ratio analysis helps you move beyond “Is this salary high or low?” to structured questions about how pay actually works. gradar shows how employees are positioned within pay ranges, identify compression or outliers, assess the cost of adjustments and understand how internal pay aligns with market benchmarks.

Compare groups and populations

Analyse compa-ratios across teams, functions and other organisational groups to uncover patterns, compression or inconsistencies. Interactive dashboards allow you to filter, scale and export visualisations, helping teams explore how pay positioning differs across populations.

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Bar chart showing external compa-ratio analysis with the highest bar at 100% and lower bars at 80%, 90%, 110%, 120%.
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Person views internal compa-ratio analysis on laptop with a bar chart of guaranteed base pay.

Employee-level insight and cost scenarios

Drill down into individual employee data to understand base pay and target compensation positioning within the pay structure. gradar can also estimate the cost of potential adjustments, such as raising salaries to band minimums or midpoints, supporting structured discussions with leadership and finance.

Compare internal and market positioning

gradar combines internal compa-ratio analysis with external market benchmarks, helping you understand how salaries are positioned relative to both pay ranges and market rates. This provides a clearer foundation for compensation reviews, pay adjustments and transparent pay setting.

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Chart showing internal value at 105% and market value at 98% on a scale from 80% to 120%.
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Compa-ratio analysis FAQs

What is compa-ratio analysis?

Compa-ratio analysis compares an employee’s salary to a reference point in the pay structure, usually the midpoint of the salary range for their role. This helps organisations understand how salaries are positioned within the structure and whether employees are paid below, at or above the intended pay level.

How is compa-ratio calculated?

Compa-ratio is calculated by dividing an employee’s base salary by the midpoint of the salary range. A compa-ratio of 1.00 means the salary sits exactly at the midpoint, while values below or above show how far pay is positioned below or above that reference point.

What insights can compa-ratio analysis provide?

Compa-ratio analysis helps organisations understand how pay is distributed across roles, grades and groups. It can reveal patterns in pay positioning, highlight compression or outliers and identify areas where pay decisions may be inconsistent across comparable roles.

What data is needed to perform compa-ratio analysis?

To run compa-ratio analysis, organisations typically need employee pay data such as base salary and target compensation, job or level mapping for each employee and the salary ranges associated with those roles. Additional information such as location, legal entity or currency can also be included.

Can gradar analyse both base pay and total compensation?

Yes. gradar allows organisations to analyse base salary as well as target compensation positioning. This helps compensation teams distinguish between issues related to base pay and those linked to variable pay or incentive structures.

Can compa-ratios be analysed across different groups?

Yes. gradar allows compa-ratio analysis to be segmented across teams, job families, levels, legal entities, locations or other organisational groups. This helps identify patterns and inconsistencies in how salaries are positioned across different populations.

What is salary range penetration?

Salary range penetration shows where an employee’s salary sits within the full salary range from minimum to maximum. It complements compa-ratio analysis by providing a broader view of progression through the range, particularly in structures where minimum and maximum boundaries are important.

How does compa-ratio analysis support compensation decisions?

By showing how salaries are positioned within pay ranges and across comparable roles, compa-ratio analysis provides a clear foundation for compensation reviews. It helps organisations identify adjustment scenarios, estimate cost implications and make more consistent, explainable pay decisions.

Pay clarity you can act on

gradar gives you clear insight into how pay is positioned - helping you make consistent, defensible decisions across reviews, budgeting and progression.

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