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:

  1. Toggle the "Market Adjustment" button to the right.

  2. 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.

  3. 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.