Simulation of Compensation
Decisions XpertTM Salary Analysis can easily determine the financial implications of annual increment decisions and annual bonus decisions. Usually the two critical factors for awarding annual increments and bonuses 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. This example is based on a policy 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 0.96 will get an annual increment higher than the inflation rate of 3%. Policy decision can be simulated and cost implication calculated during meetings.
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