comp ratio

Advanced 👥 Human Resources

Definition

The ratio of an employee's actual salary to the midpoint of their pay range, expressed as a percentage. A fancy way to calculate exactly how underpaid you are relative to market rate.

Example Usage

Your comp ratio is 85%, which means you're making 15% less than the midpoint and should probably start job hunting.

Origin

Standard compensation analysis metric developed in the 1970s

Fun Fact

A comp ratio below 80% typically indicates an employee is at high flight risk, while above 120% suggests they're overpaid or a retention risk.

Source: Compensation and benefits analysis terminology

Related Terms

Beginner

counteroffer

An improved compensation package your current employer suddenly produces after you resign, proving they could have paid you more all along but needed the threat of your departure to motivate them. A relationship red flag disguised as a raise.

👥 Human Resources
Intermediate

Termination

The clinical, robotic word for firing someone that makes it sound like deactivating a piece of equipment. HR uses it because saying "we ended a human's livelihood" doesn't fit neatly in a dropdown menu.

👥 Human Resources
Beginner

seat warmer

An employee who occupies a position without adding meaningful value—essentially a human placeholder who excels at looking busy while accomplishing nothing. They've mastered the art of organizational camouflage.

👥 Human Resources
Advanced

redressal

The formal remedy or compensation provided when someone's been wronged, typically used in British English and corporate complaint departments. It's the bureaucratic equivalent of saying 'our bad, here's something to make you shut up.' The term suggests a systematic approach to fixing problems, though in practice it often means endless forms and qualified apologies.

👥 Human Resources
Advanced

off-cycle compensation adjustment

A surprise raise given outside the normal review period, usually because they realized you were about to quit or a competitor tried to poach you. It's the corporate equivalent of only fixing the relationship when your partner has one foot out the door.

👥 Human Resources
Advanced

disparate treatment

Intentionally treating someone differently because of their protected characteristics like race, gender, or age. Unlike adverse impact, this is discrimination on purpose—and it's very illegal.

👥 Human Resources

Translate This Term

See “comp ratio” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

Try the Translator

Share This Term

Post on XShare on FacebookShare on LinkedIn

Discover a Term

Advanced

froust

An attempt to create a new synonym for 'fast' or 'quick' that sounds vaguely Germanic or made-up, depending on your pers...