Pay Matrix Question

2314190

For those of you who use a grade/step-type pay matrix, what do you do when your employees reach the end of the matrix? We have a salary matrix that has grades 1-24 with 10 steps in each grade. Step increases are automatically given annually; but once you reach step 10, you no longer get step increases. How do you handle that situation or what system do you have that works better?

NaeNae55

You might get a better response over in the HR Employment Law section. In fact, I think this question was raised recently. You might look for it under old threads.

We give the maxed employee a bonus instead. That is, if an employee has maxed their level and cannot receive a raise, we give them a bonus instead. It is usually the equivalent to what they would have received in a raise over the course of the coming year.

So far employees have been fine with the bonus. It helps us too as we do not have to pay benefits on the raise, and future raises will be based on the current rate of pay (not the current rate plus the current raise) so we save money both in the current year and in coming years. Hope this helps.

Good luck!

Nae

marc

[font size="1" color="#FF0000"]LAST EDITED ON 03-27-07 AT 05:38PM (CST)[/font][br][br]We do it the way NaeNae55 does it.

2314190

Thanks for the suggestion and your response.

davids

Our employees would still be eligible for COLAs even though they are at the top step. Additionally, we allow managers to award employees at the top step, based on merit, with bonuses, extra time off, or increased vacation accrual.