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Calculates annual salary increase recommendations based on performance, market rates, and inflation. Balances employee retention with budget constraints.
Trinn-for-trinn guide
- 1Determine benchmark salary for role
- 2Adjust for employee percentile (top, average, below)
- 3Add inflation adjustment (2-3%)
- 4Apply performance multiplier (0.8-1.5×)
- 5Cap by budget constraints
Løste eksempler
Inndata
$100k, 5%
Resultat
$105k
Vanlige feil å unngå
- ✕Giving equal raises to all employees ignoring performance
- ✕Not considering equity and internal parity
Ofte stilte spørsmål
What's a typical annual raise?
Industry average 2-3%; high performers 4-5%; below average performers 0-1%.
When should I give raises?
Annually during budget season; merit-based for promotions or market adjustments; immediately for retention risks.
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