Let's distinguish between salary budget increases and salary structure adjustments.
World at Work points out that the salary budget increase and "the salary structure adjustment have wholly different purposes, and while there commonly appears to be a relationship between the twoboth rising over time with the salary budget increase generally exceeding the salary structure adjustmentthere is not necessarily a [causal relationship]." [Source: World at Work White Paper "Salary Structure Change and Compensation Increase Budgets," January 2011.]
For the US, the actual structure adjustment in 2015 was 2.0%. The projected salary structure increase for 2016 is flat at 2.0% again.
Historically, the projected salary structure increases are between two-thirds and three-fourths of the projected salary increases. Following this pattern, structure adjustments for 2016 are about 67% of projected salary increases. Most organizations move their salary structures less aggressively or less frequently than their salary increase budgets so that employees' salaries move into their respective salary ranges. If both moved at the same pace, some employees' salaries would languish at minimum indefinitely.
Using the Salary Structure Increases
If your salary structure was designed by Clear Management, you can update the entire pay scale (Minimums, Midpoints, Maximums for each grade) by entering the appropriate salary structure adjustment from the table above into the highlighted cell. For example, to add 2% to the salary structure for next fiscal year, edit the existing formula in the Pay Scale Increase cell by adding "*1.02" to the end of the formula and press Enter. All cells will automatically recalculate.
If your pay scale was not designed with an automatic recalculation feature, follow these steps to adjust each range in your salary structure.
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