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Simulation of Compensation

Decisions Xpert Salary Analysis will determine financial implications of annual increment decisions and annual bonus annual decisions. Usually the two critical factors for awarding annual increments and bonus decisions are performance rating and position of the current salary in the salary scale (Compa-ratio).

The following is an example of a matrix for awarding annual increments based on individual Performance Rating and Compa Ratio. The example below shows that employees who are performing at level 1 do not get annual increments. Employees who are rated at ‘2’ and whose salary is between compa-ratio 0.75 and 1.30 will get an annual increment at least equal to the inflation rate.

 

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