and practice. The reasons for such differences need to be established. They may be attributable to one or more of the following factors: differences in aggregate performance levels or performance ratings; differences in average job tenure - average tenure may be short when people leave the job through promotion, transfer or resignation before they have moved far through the range and this would result in a lower compa-ratio. Or a higher ratio may result if people tend to remain in the job for some time; the payment of higher rates within the range to people for market reasons, which might require recruits to start some way up the range; the existence of anomalies after implementing a new pay structure; the rate of growth of the organization - fast-growing organization might recruit more people towards the bottom of the range or, conversely, may be forced to recruit people at high points in the range because of market forces. In a more stable or stagnant organization, however, people may generally have progressed further up their ranges because of a lack of promotion opportunities. Some differences may be entirely justified, others may need action such as accelerating or decelerating increases or exercising greater control over ratings and pay reviews References Employment compensation