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Fast Cat 3

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Submitted By kogrady
Words 256
Pages 2
Merit Matrix:

We designed a Merit Matrix that identifies the initial merit increases for each employee by range quartile and performance rating. We have modeled each amount based on pay equity and fairness. The matrix shows the range of each position categorized based on a scale of 1-5, 1 being the best performance and 5 being the lowest performance rating. We decided that persons who scored between a 4-5 will not receive an increase due to their poor performance. Persons receiving a 3 (average) will receive a 2.0 percent increase, 2 a 3.0 percent increase and 1 a 4.0 percent increase equaling to a total cost merit increase plan of 3.0 %. Our rational was to have our total merit increase equal to 3.0%, which allowed us to stay below the budget of $67,000.

Balance Score Card:

Objectives: Incentive plan will be based off of Fast Cat’s mission, which is to ******. Incentive plans will be centralized around 4 key categories:

Innovation
Team Work
Customer Satisfaction
Customer Growth

Since Marketing and Administrative positions lagged the market by 5%, we decided to give their bonuses that were an increase of 10% after salary adjustment since these positions tend to make less than the technical positions. The Engineering and Technology positions will receive a 5% increase with their bonuses after the salary adjustment, but will not receive 10 % due to their pay scale being much higher. There will be no bonuses given to those who are over the max in pay.

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