The purpose of this activity is to help the users to make
increment-related decisions by providing insights into the market rates per
job. The market salary ranges per job will be visible in the Salary Review under
Benchmark Minimum Salary, Benchmark Salary Mid-Point and Benchmark Maximum Salary.
If Company has set its own Salary Ranges for the jobs,
then that information will be shown under Maximum Salary, Salary Mid-Point and
Minimum Salary on the Salary Review Page. Using the company-defined salary ranges
the Compa- Ratio and Range Penetration will be calculated.
Compa-Ratio (Compensation Ratio) is used to determine the
Competitiveness of an Employee’s Pay. If Compa- Ratio is 100 it indicates that
the company is paying the employee his/her full market value.
Compa Ratio = (Current Salary/ Salary Mid-Point) x 100
Range Penetration is another insight that is used in defining
the increment per employee based on their job. It is a pay metric that
compares the salary an employee is paid to the total pay range for their position or
similar positions within other companies.
Range Penetration = (Salary – Minimum Salary)/ (Maximum
Salary – Minimum Salary) x 100
To perform this activity the following information needs
to be predefined.
Employees
Jobs and Job Grade
Employees connected to Job and Job Grade
Job Benchmarking
Grade Salary Range
No System Effects will happen due to this activity.