Title
Compa-ratios

Purpose
You can use this report to calculate the compa-ratio, that is whereindividual employees sit in their respective salary bands. You can thenuse the compa-ratio to check to see whether your employees' salariesare still within the salary band or whether in individual cases, anemployee needs to receive a salary adjustment, or be moved into adifferent pay grade or level.

Prerequisites
The relevant employees and their salaries must be assigned to a paygrade structure (not to a pay scale structure).
A valid Basic Pay infotype record (0008) must exist for therelevant employees.

Selection
You can either use the Selection or Further selectionsfunctions to select the employees, or you can choose Org. structure. If you want to select your employees via the organizationalstructure, you must enter a root organizational unit. The system thenselects all the employees from this organizational unit and all itssubordinate organizational units.
The system calculates an employee's compa-ratio by taking an employee'sbase salary and comparing it to the midpoint of the salary band. Thesystem takes the employee's capacity utilization rate into account.
Compa-ratio = (100/capacity utilization level) * (base salary/midpoint)

Note
The setting you make in the Compensation Management Customizing sectionof the implementation guide (IMG) under SetSystem Parameters for theCRSAL switchdetermines whether the system uses the basic salary or the annualsalary for the calculation of the compa-ratio.
The setting you make in the Compensation Management Customizing sectionof the implementation guide (IMG) under SetSystem Parameters for theCRVAR switchdetermines whether the system uses the midpoint of the pay grade or thepay grade level for the calculation of the compa-ratio.

Output
The report lists the names of the employees in a table together withthe following data per employee:

• Country grouping


• Pay grade, pay grade type, area, and level


• Midpoint of pay grade or pay grade level


• Pay grade and level


• Basic salary or annual salary


• Compa-ratio

You can also display an error list per employee by choosing List =>Display error list.