1. Determine how best to distribute the merit pool based on the principle of pay for performance. Merit increases should be expressed both in dollars and as a percent of the employees current base pay.
2. Compute the new salary (merit increase + current salary)

This spreadsheet shows each employees computed compa ratio and a chart reflecting the salary and performance rating for the assigned employees.

Based on the results from the compa-ratio and the line graph we have prepared, some employees will receive a better merit increase than their fellow employees. The compa-ratio helps us determine where the employees currently fall with their current salary and how much of an increase we can give each employee that way they can be above the standard performance salary line if their performance calls for that salary increase. The merit budget is going to be $14,352 ($478,400*0.03)

E G M C Rating D Como R350 3 1.11 ON 2.7 2.34 34 0.78 Pay vs. Performance Rating 45 . A B 1 Employee Pas 2 stery, Christire $ 25.00 rares, R$ 33.00 4 ure, Maria $ 16.75 Porter, Henry $ 1350 6 Laar, Tina $ 11.5 7 Ahmedlare $ 17.00 B Gimer, Osthes 23.00 9 Perry, Ronde $ 21.00 30 intor, Marily$ 18.00 1. Bush, Gay $ 20.00 12 Soto, Sandra $ 16.50 23 Carey Roald $ 16.00 as 3.8 3.6 3.5 28 27 36 Q.JE 1.00 0.99 OB 0.89 73 0.71 Performance in 25 1 35 | 55 35 | 34% 00 . 3 E G M C Rating D Como R350 3 1.11 ON 2.7 2.34 34 0.78 Pay vs. Performance Rating 45 . A B 1 Employee Pas 2 stery, Christire $ 25.00 rares, R$ 33.00 4 ure, Maria $ 16.75 Porter, Henry $ 1350 6 Laar, Tina $ 11.5 7 Ahmedlare $ 17.00 B Gimer, Osthes 23.00 9 Perry, Ronde $ 21.00 30 intor, Marily$ 18.00 1. Bush, Gay $ 20.00 12 Soto, Sandra $ 16.50 23 Carey Roald $ 16.00 as 3.8 3.6 3.5 28 27 36 Q.JE 1.00 0.99 OB 0.89 73 0.71 Performance in 25 1 35 | 55 35 | 34% 00 . 3