← HR Metrics·Compensation & Benefits
Total Increase % of Payroll
Combined merit + promotion + adjustment spend as a percentage of payroll base.
How it’s computed
(merit_spend + promo_spend + adjustment_spend) / payroll_base * 100
What the evidence shows
Evidence (effect sizes, priors, validity) is syncing from Principia.
Run it on your data
This metric is computed in the People Analytics Toolbox on your own numbers. See pricing — posted, no quotes.
sources: toolbox:metrics-catalog
What the literature says
The measurement literature behind this signal — sourced, so you can defend it.
“This is because the interval between increases is less than 12 months for employees who receive more than one increase during a 12-month period. In the example, we assume that the expected average increase is 7%, with an interval between increases of 9 months. In most companies…”
— Compensation Benefit Designmatch 62%
“Adjust as needed to meet the organization’s overall budget. For an example of a completed merit increase matrix, see Figure 6.10 .It is increasingly common for HR to recommend an overall merit budget that is substantially higher than what the business is willing to fund. As a…”
— Worldatwork Handbook Compensationmatch 60%
“Our pay is the reference. In Table 12.9 , this is in the column headed % to Meet Mkt Mid.Recall from Chapter 2, how to calculate the percentage difference between two terms. [image "equation" file=Image00317.gif] TABLE 12.9 MARKET ANALYSIS [image "table" file=Image00318.jpg] For…”
— Statistics for Compensationmatch 59%
Resources: Compensation Benefit Design · Worldatwork Handbook Compensation · Statistics for Compensation