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Salary Matrices#

Salary Matrices are one means by which pay-for-performance may be achieved in the program. Salary Matrices are maintained on the Define Salary Matrices (ISMX) form. In this form, you create guidelines to control how employees’ wages should be increased, based on a combination of their current level of pay and reviewed performance.

Employees’ current salaries are compared with others in their range by means of “Compa-Ratios”. Employees with a compa-ratio of 1.0 are making the average salary for their range; compa-ratios of less than 1.0 show an employee under the average, etc. If there is an excellent employee who is well under the average compa-ratio, the employer may wish to reward that employee at a greater rate than an employee who is above the average compa-ratio and yet performs at less than peak level. This control is achieved through the use of recommended percent increases for each combination of performance and current salary (compa-ratio) – and these recommended increases are defined on this form.

To allow flexibility for managers, while maintaining control over wage increases, you not only specify the recommended percent increase, but may also specify a wider range of acceptable percent increases. These are shown as the minimum and maximum percentages for each level of performance/current earnings. As well, to control the maximum wage that an employee may earn within a job/range (regardless of how long in the position, or performance), you may specify the maximum compa-ratio that is allowed for each performance level.

Maintain Salary Matrices data is maintained on the P2K_SA_SALARY_MATRICES and P2K_SA_SALARY_MATRIX_DETAILS tables.

Matrix

This is the name of the matrix that is being created. It is not necessary to include the name of the unit, or the range rule that this matrix is used for, in the matrix name.

Entity

Salary matrices must be associated with an entity.

Start Date

Over time, the values of the compa-ratios, and the percentages of wages that apply, may change. This field allows you to define the dates during which the matrix is applicable.

End Date

This field shows the date after which the matrix will no longer be valid/applicable. There is no restriction made by the system on how long a matrix may be valid.

Description

This field allows you to enter a description of the matrix code created.

Overall Rating

This is the rating that is being tracked for this record in the matrix. Overall_Rating is a required, user-defined lexicon (X_OVERALL_RATING), which you may choose from the list of values.

For each matrix code there may be many records based on the number of rating levels being used by the company. After one record is defined, use the Add icon to add a 2nd, 3rd, etc. record. Once more than one record has been saved, use the up/down arrow buttons on the horizontal toolbar to move amongst the records.

Low Compa-Ratio

This field shows the lowest level of compa-ratio that is being defined in this record. For each Overall Rating entry record there will be both a low and high compa-ratio.

High Compa-Ratio

This field holds the applicable high level of compa-ratio being defined in this record. Users will enter multiple records for each Overall Rating entry, and each will have a low and high compa-ratio. \
The low and high compa-ratios may not overlap. Please see the example, below.

Example: Matrix Code: Salary-Clerical, etc.

Record #	Overall Rating	Low Compa-Ratio	High Compa-Ratio
1	Meets Expectations	0.0	0.49
2	Meets Expectations	0.5	0.79
3	Meets Expectations	0.8	1.19
4	Meets Expectations	1.2	9.99
5	Exceeds Expectations	0.0	0.49
6	Exceeds Expectations	0.5	0.79

The Percentage Area is used to hold the recommended salary level that should be awarded to employees with various overall ratings and current compa-ratios. For each combination of level/compa-ratio, companies define a recommended percentage and a minimum and maximum point that will control the salary changes that may be made.

Minimum Percent

For each rating/approval record, this field defines the minimum percent (of the range rule applicable) that is allowed for an employee with this approval rating and compa-ratio.

Maximum Percent

For each rating/approval record, this field defines the maximum percent (of the range rule applicable) that will be allowed for an employee with this approval rating and compa-ratio.

Recommended Percent

For each rating/approval record, this field defines the company-recommended percentage (of the range rule applicable) that should be awarded to an employee with this approval rating and compa-ratio. This percentage may be used by programs to create a pending personnel action form. Managers would then have the capability of raising or lowering the salary within the recommended minimum and maximum percent ratings, above.

Compa-Ratio Limit

This field allows you to specify the maximum salary range that an employee at this overall rating/compa ratio level is allowed to earn. For example, if an employee is at a high level of salary, the current salary percent increase may take him/her to a salary level (compa-ratio) that is over the company limit. This field is used to maximize the compa-ratio that will result from the percentage increase, and therefore is used to maximize the salary an employee can earn.

Auto Approval

If personnel action forms are to be created as pre-approved for this overall rating/compa ratio level, this flag may be turned on. If left off (blank), personnel action forms resulting from this level will not be automatically approved.