Link to Spreadsheet

YummyShine

Memo

To: Management Team

From: Missy Ortman, HR

CC: Mitchell Warren, CEO

Yearly Merit Increases

Mangers,

It is time to review and complete YummyShine’s yearly merit increases.

The guidelines are as follows:

• Employees with less than 6 months of service at the company do not receive merit increases.

• Merit increases are based on the employee’s performance. The highest increases should go to employees with the highest ratings, following the following general guidelines:

Rating: Increase % (Depending on position in pay range and annual increase budget)

5: 4% - 7%

4: 3% - 5%

3: 2% - 4%

2: 0% - 2%

1: 0

• This year, the total merit increase budget for office employees is 2.85%. THEREFORE, the total amount
  of increases given may not be higher than 2.85% of the combined current salaries for the salaried
  exempt and non-exempt employees.

• Employee salaries may not exceed the maximum of the salary range. If an increase will put the
  employee above the range maximum, a lump sum payment may be requested separately in lieu of a
  merit increase.

• Employee salaries should be at least within the range (above the minimum). For employees who are
  beneath the range, a special increase may be granted. These situations need to be handled
  individually with the manager and HR Manager
  All increases must be approved by the employee’s immediate manager, next level manager (if
  applicable) and the company CEO

Supervisors should use column J on the attached spreadsheet to input the % increase for each of their employees. Please ONLY use column J. Once you have made your entries, you will be able to see if the employee falls within their job grades salary range. Also of note, if an employee has been employed for less than 6 months, a “No Raise” flag will show in column L.

If you have questions about the spreadsheet, please contact me.

Thank you,

Missy Ortman