Example: Increase Guidelines Based on Length of Service

The organization might have a compensation increase policy that is based on employees length of service. For example, assume employees who have been employed between 0 and 24 months receive 5 percent increases, employees who have been employed between 24 months and 60 months receive 7 percent increases, and employees who have been employed for more than 60 months receive increases of 10 percent.

To help administer this policy, you can set up an increase guideline table that defines the types of raises that employees are eligible to receive based on their length of service.

Using the evaluation factor of length of service, you can create three different ranges in which to group the employees. The first range includes all of the employees who have been employed between .001 and 24.000 months. The second range includes all of the employees who have been employed between 24.001 and 60.000 months. The last range, 60.001-9999.000, includes all of the employees who have been employed more than 60 months.

Note: You must complete both the Data Item for Column Factor field and the Data Item for Row Factor field in the Define Increase Type Guidelines program (P08820). If you are using only one evaluation factor, such as length of service, you must complete both fields with that evaluation factor.