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A pay adjustment is a change in an employee's pay rate. You can change an employee's hourly wage or salary. Typically, compensation adjustment is an increase in the pay rate, such as when an employee earns a raise.
Equity adjustments are salary changes outside the normal salary programs (promotions, reclassification, merits, etc.) to remedy salary issues such as external pressure in high demand areas, internal salary compression, and/or retention considerations. Equity adjustments are not granted to reward performance.
An equity increase is a permanent increase to the base salary that may be granted to an employee under certain circumstances, such as increased duties that do not warrant a reclassification or a significant salary lag to comparable internal positions or the local labor market.
A pay adjustment is a change in an employee's pay rate. You can change an employee's hourly wage or salary. Typically, compensation adjustment is an increase in the pay rate, such as when an employee earns a raise.
Equity compensation is non-cash pay that represents ownership in the firm. Equity compensation allows the employees of the firm to share in the profits via appreciation and can encourage retention, particularly if there are vesting requirements.
STEP 1: DO YOUR RESEARCH. Justification must accompany requests for equity increases, including specific outside salary offers in cases of retention, or a specific analysis of salary relationships in cases of correcting salary inequities. STEP 2: ANALYZE THE DATA AND MAKE YOUR CASE.
First, multiply the percentage by the employee's current annual wages: $50,000 × .04 = $2,000. Next, add the employee's current annual salary to the raise amount: $50,000 + $2,000 = $52,000. Take the employee's new annual salary and divide it by 26: $52,000 / 26 = $2,000.
To work out salary increase percentage, start by subtracting your old salary from your new salary. Next, divide the salary difference by your old salary in order to turn the increase amount into a decimal.
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