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EXERCISE 25
MERIT GUIDE CHART AND PAY-FOR-PERFORMANCE ALLOCATIONS
1. Pay Grade Designation for Software Engineers:
Max. $81,120
75th $74,360
50th $67,600
25th $60,840
Min $54,080
MERIT PAY ALLOCATION SPREADSHEET
EMPLOYEE
NAME
Gender
Years
with
ODD
Perfor-
mance
Rating
Current
Base Pay
Guide
Chart %
Increase
Recommended
Pay
Adjustment
Proposed
New
Base Pay
Branch, Joan
F
3
4
$56,310
6
$3,379
$59,689
Coleman,
Martha
F
3
5
$55,660
10
$5,566
$61,226
2. Possibly the major change that I would make would be to increase the percentage increase for all
Superior ratings by at least two percent and the Commendable ratings by one percent.
3. The merit guide chart adjustments would cost $14,901 leaving an excess of $4,099 if $19,000
were available. One could calculate new compa-ratios with the following results: Branch—.833,
Coleman—.906, Firm—1.034, May—1.062, O’Brien—.816, and Thorn—1.066. After analyzing the
4. If only $8,000 were available, I would grant increases only to Branch, Coleman, and May. I
would add their merit guide chart suggested increases and develop a ratio for the three and then divide the
$8,000 according to the ratios.
Firm, William
M
3
$68,530
2
$1,370
$69,900
May, Cynthia
O’Brien, Cecilia
Thorn, James
M
3
$70,670
2
$1,413
$72,038