Compa$-$Ratio is found by dividing the pay rate of an employee by the midpoint of the pay range.

Given a range of $$16$ to $$20$ an hour, a midpoint of $$18,$ and a salary of $$16$ an hour, the compa$-$

ratio is:

$$16$$$18=\mathrm{.}89or89\%.$

Compa$-$ratios below $1\mathrm{.}00$ mean wages are

below the midpoint; compa$-$ratios greater than

$1\mathrm{.}00$ mean wages exceed the midpoint.

it's that time of year again. Your organization is conducting performance reviews and considering

pay raises. The Human Resources Department has predetermined $5$ zones of compa$-$ratios:

$80-87\%-$ New, inexperienced, or unsatisfactorily$-$performing incumbents.

$88-95\%-$ Those gaining experience but not yet fully competent in the job.

$96-103\%-$ Fully competent performers performing the job as defined.

$104-111\%-$ Those consistently performing at a higher level than what is required.

$112-120\%-$Outstanding performers.

Mario has been evaluated as being a conspicuous outstanding performer in all rating areas.

The range for his position is $$50$ to $$75$ an hour, with a midpoint of $$62\mathrm{.}50$ an hour. Mario is currently

earning $$55$ an hour.

HR must determine if he is currently being compensated according to his most recent performance

evaluation rating.

Does Mario's current hourly rate fall within the predetermined compa$-$ratio for his assessed performance level? Yes or No$?$

Based on your answer, what should HR recommend? What new hourly rate will you recommend to be able to comply with the predetermined compa$-$ratio and be able to

explain it to your boss?