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Table 5
| Job |
Current
Compa-ratio(%) |
Revised
Compa-ratio(%)
|
| A |
98 |
98 |
| B |
111 |
105 |
| C |
87 |
91 |
| D |
103 |
105 |
| E |
107 |
107 |
| F |
93 |
98 |
The table shows no change in performance assessment for Jobs A and E, an increase for C, D and F, and a decrease for B (yes, performance can slip).
Assume again that the company wishes to align its practice line with the market median, in which case its practice line becomes:
Salary = Job points x $150.38c + $10,918
And the proposed new salary for individuals, taking their revised compa-ratios into account is as follows:
Table 6
| Job |
Job Points |
Current Salary |
Revised
Compa-ratio(%)
| Proposed Salary:
(Job Points x $150.38c
plus $10,918)
x Revised Compa-ratio |
Salary
Increase/Decrease
(Proposed minus Current) |
| A |
1,200 |
170,000 |
98 |
187,547 |
17,547 |
| B |
900 |
150,000 |
105 |
153,573 |
3,573 |
| C |
750 |
100,000 |
91 |
112,570 |
12,570 |
| D |
500 |
85,000 |
105 |
90,413 |
5,413 |
| E |
300 |
60,000 |
107 |
59,954 |
-46 |
| F |
200 |
40,000 |
98 |
40,174 |
174 |
| Totals |
|
605,000 |
|
644,231 |
39,233 |
This salary review, implementing the revised performance assessments, together with realignment with the market median will cost $39,233, which represents an overall 6.5% increase in the payroll.
Copyright (c) 2006 National Remuneration Centre