$1.$ Calculate the $3\%$ merit budget $($merit pool is determined by computing $3\%$ of the total salary of your team$).$

$2.$ Compute each employee$$s compa$-$ratio $($current salary divided by the midpoint$).$ This value represents the relative position of the employee$$s current salary to the market $($low$,$ equal, high$)$ and can be useful in making award decisions.

$3.$ Determine how best to distribute the merit pool based on the principle of $$pay for performance$.$ Merit increases should be expressed both in dollars and as a percent of the employee$$s current base pay.

$4.$ Compute the new salary $($merit increase $+$ current salary$).$