1 Reply Latest reply: Nov 28, 2012 9:40 AM by Kel_123 RSS

    Which MATRIX to use & how to setup for our salary increase rules ?

    Kel_123
      Hello,

      I know ! This description is LONG. But that is what we think should be descriptive of our situation.
      Please don't get discouraged !
      Simply take a juice for a break and you will have more joys helping us !!! JOKE.

      Here is our story...

      Recently we have a union agreement stating rules for increase EE's salaries

      We have this new salary increase business structure to implement to HCM 8.9 and to be effective on Jan 01, 2013

      Our current business requirement is simple but YET causes us headache as to what or combination of salary increase MATRIX to choose:

      Searching in Peoplebook & online, we see that there are 4 matrix possibilities that we can use for our need.
      1- Salary/Grade/Step MATRIX 2-Salary Increase MATRIX 2-Configurable MATRIX 3-Merit MATRIX

      But we went through many times and still not sure how to proceed the setup.


      Our rules are:

      We have two increases to apply for the EE's base salary every year.
      Cost of Living and OUR Yearly Predefined increase %.

      Example: For Cost of Living increase, we have 2013 -> 1.8%, 2014 -> 1.9%, and so on..
      Example: For OUR yearly predifined %, we have 2013 -> 2.0%, 2014 -> 2.5%, and so on..

      (1) As i mentioned, our salary increase involves 2 steps:
      (a) Add this year's Cost of Living % to the EE's base salary
      (b) On top of that, Add our this year's predefined Increase % to the EE's base compensation rate

      Sound SIMPLE isn't it ?!
      (2) Every year, this increase is done at the EE's birthday

      (3) An EE's birthday is the current year with same day & month than those of the EE's promoted OR hire date
      ( Ex: If EE is Hired Oct 29 2009, then his Birthday for this year is Oct 29 2012 )

      We looked and find that for:

      (A) Salary/Grade/Step MATRIX:
      The grade & steps are not flexible enough to cover our needs as they don't take % increases, only salary values

      (B) Salary Increase MATRIX:
      Not helping cause it only handles performance Reviews

      (C) Configurable MATRIX:
      This seems to be the most capable to handle our needs.
      We thought of setting Year of Cost of Living as input to MATRIX A with results Base salary & Year of our increase ( same as Year of Cost of Living )
      Than MATRIX B would take the results from MATRIX A and add this year's Predefined increase % and have results as base salary
      Our questions are: How to send input and get this MATRIX to run ?
      Having the output final base salary from MATRIX B, does it update the JOB comp rate ? Or do we have to have a kind of way to capture this base salary and update it to JOB comp rate ?
      A bit overwhelming for us as of now.

      (D) Merit MATRIX:
      This does not help as it only handles increases by pts, range & review rate

      So we are here and still not sure what to do. The configurable MATRIX seems to be the one. But is that right and to get it to RUN ?

      Anyone having some opinions about this please give us some ideas !
      Thank you very much and we owe you a BEER for your time !

      Signed
      Confused group