Mid-year job change

GLC

I wanted to know how others handle a job change or promtoion mid-year that requires a salary upgrade. We have an employee who is going into a new job eff. 2/1. The new position is the same grade as her current position. However, the duties in the new position are a little more so we would like to give some type of salary increase. We do all of our annual increases eff. 7/1 each year. Say we give her a 3% incrase now. Should it be pro-rated based on the 5 months in this new job or not pro-rate it at all, given that she will get an annual increase 7/1/03? It almost seems to much to give her a full increase now and give her another one in July.

cthr

An increase associated with a promotion is different from a merit increase. Give her the promotional increase now and then whatever her merit increase would be at review time. If you prorate, it is more of a disincentive to being promoted.

bsa

A promotion with additional responsibilities deserves extra compensation. A merit increase is a whole other animal. I would give her the an increase now for the promotion. In July, depending on her performance, she would get a merit increase based on that performance. If you don't recognize the difference, your employees will have no incentive to seek promotion.

Another way to look at this. --- If you hired from the outside, would you pay the higher salary for the position and in July give the merit? I think you would or you would lose the employee.

NaeNae55

I agree with the above, but have another suggestion. When we promote an employee close to annual raise time, we include that in our figurings and give the employee a nice raise on the understanding that they will not get the merit increase at regular raise time.

Having made that suggestion, I will also tell you that in my opinion 5 months is too far from annual raise time for the above to be practical. I would just give a raise based on what you think the job duties and employee's skills and experience are worth. You can keep the recent promotion in mind when July 1st comes around.

Good luck!