Merit Matrix Build Guide

Guided EPMS template for documenting a merit matrix that combines performance ratings and compa-ratio bands to produce consistent salary increase ranges.

Merit Matrix Inputs

• Review Period
  Enter the compensation cycle or effective period covered by this matrix.
• Merit Budget %
  Planned merit budget as a percentage of eligible payroll.
• Eligible Employee Population
  Describe the employee group covered by the matrix.
• Pay Policy Notes
  Capture policy constraints such as minimum increase rules, market positioning, or excluded employee groups.

Performance and Compa-Ratio Matrix

• Merit Matrix
  Define performance rating rows and compa-ratio columns with recommended increase ranges for each cell.
• Performance Rating Band Definitions
  Describe what each performance rating means in the context of merit planning so managers apply the matrix consistently.
• Compa-Ratio Band Definitions
  Define the compa-ratio ranges used in the matrix, such as below range, in range, and above range.

Merit Increase Guidelines

• Increase Guidelines
  Summarize the recommended increase ranges for each performance and compa-ratio combination.
• Exception Rules
  Describe when managers may request exceptions and what approvals are required.
• Budget Guardrails
  State the rules used to keep recommendations within budget and maintain internal consistency.
• Calibration Notes
  Record any calibration decisions made to align recommendations across teams or business units.

Manager Review and Rationale

• Recommended Increase %
  Enter the proposed merit increase percentage for this employee.
• Recommendation Rationale
  Explain how performance, compa-ratio, and budget considerations informed the recommendation.
• Supporting Evidence
  List observable outcomes, results, or calibration inputs supporting the recommendation.
• Manager Approval

HR Review, Exceptions, and Sign-Off

• Exception Requested
  Indicate whether the recommendation requires an exception to the matrix.
• Exception Reason
  Explain why the recommendation falls outside the standard matrix, if applicable.
• HR Review Notes
  Document HR validation of matrix application, pay equity considerations, and policy compliance.
• HR Approval