Compensation - Annual Increase Merit Matrix Template (Excel XLSM)

BENEFITS OF DOCUMENT

1. Quick calculation of a merit matrix approach for annual merit reviews
2. Ease of use for reward teams
3. Simple to use and set up

DESCRIPTION

This product (Compensation - Annual Increase Merit Matrix Template) is an Excel template (XLSM), which you can download immediately upon purchase.

The Merit Matrix Template tool is an Excel-based application designed to streamline the process of annual merit increase budget allocation. By utilizing compa ratios (position in pay ranges), and performance ratings, the tool assists reward teams in determining the optimal distribution of merit increases across all eligible employees using a pay-for-performance approach.

Reward teams are able to quickly determine the relevant increases to provide an employee based on the position of their pay against the company pay ranges, as well as ensuring that a pay-for-performance methodology is adhered to, where high performers who are paid lower in their pay ranges receive a higher percentage increase. Users can also determine what increases, if any, poor performers should receive in line with their company strategy.

This workbook is designed to be as easy to use as possible with everything calculated based on a few criteria/inputs from users. Users are shown which cells they are able to edit and what information is required to run the merit matrix.

This comprehensive approach ensures that the budget is optimally and equitably allocated and in alignment with a company's reward strategy and pay increase budget, making it an invaluable tool for budgeting and compensation management.

Source: Best Practices in Compensation Excel: Compensation - Annual Increase Merit Matrix Template Excel (XLSM) Spreadsheet, Ignite Reward Consulting