An employee is earning a salary of US $65,000 per year, and the salary median...

The compa-ratio is calculated as:

Compa-ratio=(Employee SalaryMedian Salary)×100\text{Compa-ratio} = \left(\frac{\text{Employee Salary}}{\text{Median Salary}}\right) \times 100Compa-ratio=(Median SalaryEmployee Salary​)×100 Compa-ratio=(65,00080,000)×100=81%\text{Compa-ratio} = \left(\frac{65,000}{80,000}\right) \times 100 = 81\%Compa-ratio=(80,00065,000​)×100=81%

A compa-ratio of 81% indicates that the employee’s salary is below the median for the job. HRCI advises using compa-ratio analysis to assess pay competitiveness and equity within an organization.