The Market Adjustment feature allows you to incorporate additional budget to address employees who are currently below market (e.g., below 85% base salary compa-ratio) to get them to at least 85% base salary compa-ratio.
To use the Market Adjustment feature follow the steps below within the Comp Review Management page:
Toggle the "Market Adjustment" button to the right.
Enter a maximum increase percentage.
For example, if you enter 10% as the Max Market Increase percentage, this caps the salary increase recommendation for the employee at 10% of their salary.
You can opt to enter a higher Max Market Increase percentage (e.g., 100% of the employee’s salary) as the cap if you want to get them to at least 85% base salary compa-ratio no matter what the cost.
You’ll need to enter a Max Market Increase percentage for Market Adjustments for each country that you have employees in.
Once any Market Adjustment increase percentage is entered, Kamsa will factor into the Calculated Salary Budget the amount needed to get all applicable employees' base salary compa-ratio to at least 85%.
For employees that are below 85% compa-ratio, Kamsa will default to the larger of either the calculated market adjustment or merit increase.
The merit increases guidelines for the Below Competitive category must be at least 0.01% for the costs for Market Adjustments to be factored into the budget and to generate a recommended increase for those applicable employees.
For example, if the merit increase guideline for Below Competitive for Performance Rating of 1 is 0%, and the Market Adjustment Max Market Increase is 10%, no Market Adjustment increase will be calculated in the budget or for applicable employees.
However, if the merit increase guideline for Below Competitive for Performance Rating of 1 is 0.01%, and the Market Adjustment Max Market Increase is 10%, up to a 10% Market Adjustment increase will be calculated in the budget or for applicable employees.