Kamsa leverages the adjustable Merit Increase Guidelines to calculate the salary increase budget and salary increase recommendations for your Comp Reviews based on employees’ country, compa-ratio, and performance rating (if applicable). By default, Kamsa displays the recommended salary increase guidelines by country based on latest market trends, however, you can adjust them, as necessary, to meet within your budget.
The merit increase guideline includes two main factors:
Compa-ratio: Compa-ratio is used to assess the employee’s compensation against the market. A compa-ratio of 100% means the employee is aligned exactly at the market rate for their job. The competitive range is considered to be a compa-ratio between 85% to 115%. A compa-ratio below 85% means the employee’s pay is below market.
Performance Rating (Optional): If you’re using performance ratings, you'll upload them to the comp review in the performance ratings template. Kamsa will then use these ratings along with the compa-ratio guidelines to determine the salary increase recommendations based on the Merit Increase guidelines. Uploading performance ratings allows Kamsa to more precisely calculate the budget needed for salary increases. If no file is uploaded or if an eligible employee is not included in the performance ratings file, Kamsa will use the salary increase guidelines for the Unknown Rating category.