Employee Raise Calculation Scenario
Determining an employee's salary raise often depends on multiple factors: performance ratings, current salary, and the department or role of the employee. In a structured organization, automating this process ensures fairness, transparency, and adherence to predefined criteria. This tutorial offers a step-by-step guide on how to calculate the raise an employee should receive based on standardized guidelines.
What We Will Do:
Gathering Employee's Information
Capture essential details:
- Full Name
- Current Salary (Between 850 and 2500)
- Years Of Service (At least 1 Year of service)
- Department (HR, Engineering, Marketing, Design)
Base Raise Determination:
- Data Gathering:
- Performance Rating dictates the base percentage raise.
Calculation Process:
| Performance Rating | Base Raise Percentage |
|---|---|
| Basic | 0% |
| Average | 3% |
| Proficient | 5% |
| Outstanding | 7% |
Departmental Adjustment:
Different departments might have different budgets or scales for raises due to the nature of the job market, competition, or strategic company initiatives.
- Data Gathering:
- Department influences the adjustment to the base raise.
Adjustment Process:
| Department | Adjustment |
|---|---|
| HR Or Marketing | +0.5% |
| Design | +1.2% |
| Engineering | +2.2% |
Final Raise Calculation:
Combine the base raise percentage with any departmental adjustments, then apply this percentage to the employee's current salary.
Calculation:
Final Raise = Current Salary × (Base Raise Percentage + Departmental Adjustment)
Communicating Raise Outcome: Building the Flow
Once the raise is determined, communicate the new salary and the percentage increase to the employee. This ensures the employee understands how their raise was calculated and recognizes the factors that influenced it.