Review and Allocate Employee Increment

Explanation

When the Salary Review Plan is generated and approved, a suggested increment amount per employee will be auto generated.

Salary Setting Manager can use the insights that are provided and explained in the previous activities.

The Employees Performance History details are to adjust or enter increments per employee.

The Increment Amount and Increment % are editable fields. It is auto-calculated according to what you enter. If Increment Amount is entered, then Increment % but if Increment % is entered then Increment Amount. This Increment Amount will include potions of both Base Salary and Variable Salary amounts that is included in the Budget.

When the increment amount is entered, it will be used to calculate the New Base Salary, New Variable Salary and New Salary of the Employee. Based on these new amounts the New Compa-ratio and New Range Penetration will get calculated.

If the entered Increment amount is not within the allocated budget of the company, then in the budget information section there will be a warning message as “Budget Exceeds” and will view the remaining budget in minus figures.

If any of the employees has a Fixed Increment set in the Salary Review Plan, the user will not be able to enter a new increment amount for that employee in Salary Review.

If any employee is set for a Minimum Increment in the Salary Review Plan, then the user can only change the increment to any higher value than the Minimum Increment.

In the Employee section, all the responsible employees will be visible to the Salary Setting Manager regardless of whether they are included or not in the salary review. But the manager can only give an increment amount for the employees who are set as In Salary Review to “Yes”. If Salary Setting Manager needs to include an employee who is excluded from the Salary Review Plan, then use the “Include to Salary Review” option to include that employee in the salary review.

Prerequisites

To perform this task a Salary Review Plan needs to be generated for the company.

System Effects

By performing this activity there will be New Salary Amount and New Variable Salary Amounts recommended for the employee.