Market Adjustment: Bringing Employees Up to Market
The Market Adjustment feature lets you add budget specifically to raise employees with a base salary compa-ratio below 85% up to at least 85%.
How to Use Market Adjustment
Go to the Comp Review Management page.
Toggle the Market Adjustment switch to ON.
Enter a Max Market Increase % for each country.
This sets a cap on how much an employee’s salary can increase to reach 85%.
Example: Entering 10% means Kamsa won’t recommend more than a 10% raise, even if the employee is far below market.
If you want to raise employees to 85% regardless of cost, enter a high cap (e.g., 100%).
How It Impacts the Budget
Once a Max Market Increase is entered, Kamsa includes the cost to bring below-market employees up to 85% in the Calculated Salary Budget.
For employees below 85%, Kamsa compares:
The Merit Increase
The Market Adjustment
The larger of the two is applied as the recommended increase.
Important: For Market Adjustments to be included in the budget, the Merit Increase guideline for that employee’s category must be greater than 0% (e.g., at least 0.01%).
If the Merit guideline is 0%, no Market Adjustment will be calculated — even if the employee is under 85%.
If the guideline is 0.01% or higher, Market Adjustments (up to the cap you set) will be applied.