Understanding Increase Type Guidelines

Organizations often have specific guidelines for the kinds of compensation increases that employees are eligible to receive. These guidelines can be based on a number of evaluation factors, such as length of service, performance appraisal ratings, and the amount of time served in a current position. Often, several factors determine an employee's compensation increase.

To track the guidelines that are used in determining employee increases and to assist in administering compensation increases that are within those guidelines, you can create increase guideline tables to define the types of increases that employees are eligible to receive. Managers then use these guidelines to make salary decisions.

You can create increase guideline tables to facilitate these compensation increase scenarios:

• Ranges for one evaluation factor.

  For example, if the company bases compensation increases on length of service alone, a table with established ranges for one evaluation factor, such as length of service, can store all of the necessary increase guidelines.

• Ranges for two evaluation factors.

  For example, if the company bases compensation increases on length of service and performance appraisal rating, a table with established ranges for both of these evaluation factors can store all of the necessary increase guidelines.

  Note: These tables are for informational use only and are not used by the system to calculate actual employee compensation increases. No employee information is updated directly as a result of the information in these tables.