Step 1

Research what the pay range is in the market for a position that is comparable to yours. This information can be located using the U.S. Bureau of Labor Statistics (www.bls.gov) or the Occupational Network Online (https://www.onetonline.org/).

Step 2

Find the midpoint or average of the market pay range for your position.

Step 3

Divide your current pay by the pay range midpoint. If your compa-ratio is above 100 percent, your pay is above market value and, if it is below, then it is below market value.

Example:

$76,000.00 (current pay)

Employee Joe Smith = ---------------------------------------- x 100 = 76% (Compa-ratio)

$100,000.00 (midpoint)