How do we calculate Internal Ratio?

Your Internal Ratio is calculated by comparing your Base Pay to the midpoint for everyone in a similar job group. A job group is defined by the country you work in, Job Level (GGS) and Pay Grade Level of your role.

As a reminder:

The Pay Grade Level is assigned based on what the external market value is for a role.

The Job Level (GGS) is shown as a number and indicates where your role sits in our organisation structure. It helps us to determine the relative complexity, responsibility, and requirements of a role.

What happens if your Internal Ratio is too high or too low?

We regularly complete Base Pay equity reviews, focusing on employees who have low or high Internal Ratios and therefore sit outside of the internal competitive zone.

Having a low or high Internal Ratio doesn’t always mean a Base Pay correction is needed. The difference may be explained by things like performance or how long someone has been in their role.

We use a simple method to highlight Internal Ratios that are not acceptable. This method considers the size of the gap from the Internal Competitive Zone, the length of time the employee has been in the role and performance over the last three years.

How do we use Internal Ratio?

We review Internal Ratios throughout the year, to ensure we are making fair and equitable pay decisions.

If your Internal Ratio is shown to not be fair and equitable, we look at ways to resolve this. This could involve adjusting Base Pay at any time or at the mid-year review.

This process helps us to meet our pay equity commitments by ensuring we continue to make unbiased, fair and consistent decisions on pay.