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Merit Increase Calculation
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Good morning,

This is strictly about the annual merit increases, not promotions. Do any managers have any insight into how the annual merit increase percentages are determined? For example, how would they come up with 3%? I’ve heard in the past that a bucket of money is given and that is all that can be used for a section. Is it HR that determines the exact % or is it the managers? If HR determines it, can managers give any more if they feel an employee deserves it?

Secondly, how does the ratings impact the %? For example, if one employee is on target and another is highly effective.

Thank you

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2 years ago