Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
August 18, 2010
Merit Increases Policy

In a BLR webinar entitled "Pay Grades and Salary Increases: How to Build a Competitive, Equitable Compensation System in Your Workplace This Year," Dan Kleinman, principal of Dan Kleinman Consulting enumerated how a merit increase policy should explain how you use "merit matrices" and other tools to correlate Minimum, Midpoint and Maximum merit bonuses and raises with employees' performance ratings.

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!

A sample merit matrix (assuming salary ranges) would break down a performance rating into Excellent, Good, Needs Improvement and Unsatisfactory categories with corresponding percentages for:


  • 5.00%
  • 3.75%
  • 2.00%
  • 0%

25th percentile:

  • 4.75%
  • 3.50%
  • 1.75%
  • 0%


  • 4.50%
  • 3.25%
  • 1.50%
  • 0%

75th percentile:

  • 4.25%
  • 3.00%
  • 1.25%
  • 0%


  • 4.00%
  • 2.75%
  • 1.00%
  • 0%

Dan Kleinman is the principal of Dan Kleinman Consulting (, a California-based compensation and human resource consulting firm. For the past 18 years he has served a broad spectrum of regional, national and international companies providing compensation, performance, organizational planning and reward-system design services.

Featured Free Resource:
Cost Per Hire Calculator
Twitter  Facebook  Linked In
Follow Us
Copyright © 2017 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on
Document URL: