1. This is a Microsoft Word document with an embedded Excel spreadsheet on the second page below. To enable the Excel formulas in the spreadsheet you must first click on “Enable Editing” in the yellow bar at the top of your screen. The yellow bar should disappear and be replaced by the Microsoft “ribbon” of available options for Microsoft Word. Then double click anywhere in the spreadsheet to activate Excel.
2. The spreadsheet shows the consistent performance rating for each of seven hypothetical employees. The performance ratings correspond to the following definitions: A = exceeds expectations; B = meets expectations; C = below expectations. Following the performance ratings are: the number of years each employee has been in his or her current salary grade; the current salary; the current market rate; and the compa-ratio (ratio of current salary to current market rate).
3. The yellow highlighted column is where you will enter your recommended percent increase to salary for each employee. Use one decimal point for your percent increases such as 2.5% or 0%. The remaining columns in the table (“Increase Dollars,” “New Salary,” and “[New] Compa-Ratio”) will change automatically according to the salary increase percentages you enter as will the total for the columns labeled “Increase Percent” and “Increase Dollars.”
4. Exit the Excel spreadsheet and return to the Word document by clicking once anywhere outside the spreadsheet. Your entries in Excel should be saved automatically in the Word document.
5. The total available budget for increases is $7,400 or 3.0% as shown on the lower left of the spreadsheet. Your total percent increase and total increase dollars should be in line with 3.0% and $7,400 respectively.
6. Below the Excel table you will find space to enter your rationale for the increase you are recommending and the key message you would communicate to each employee explaining your rationale. Both your rationales and your messages should be brief and to the point. Bullet points are preferred. Feel free to expand the space in the table that’s been provided if needed.

Merit-Based Pay Changes and Communications

Employee	Rationale for Increase	Key Message for Employee
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Answer rating: 100% (QA)

Question Meritbased pay incentives are given based on the consistent ratings an employee receives but in order to keep talent with the organization present salaries are also taken into account employe... View the full answer