Compensation and HR professionals work with line and staff managers to plan the pay raise program. It is necessary to recognize that the distribution of employee performance as well as pay raise amounts influence the amount needed to fund raises. Estimating these costs will help compensation professionals prepare requests for funding proposed pay raises.

Based on the projected performance distribution at year end and proposed pay increase amount per employee, the total proposed pay raise amount in dollars for each performance category:

Answer these questions -

(a) Poor:

(b) Below average:

(c) Average:

(d) Above average:

(e) Superior:

(f) The money will the company save if it were to choose not to award pay raises to employees who are expected to receive below average or poor performance ratings: $

Estimating the Costs of Pay Raises Compensation and HR professionals work with line and staff managers to plan the pay raise program. It is necessary to recognize that the distribution of employee performance as well as pay raise amounts influence the amount needed to fund raises. Estimating these costs will help compensation professionals prepare requests for funding proposed pay raises. Number of Employees: 4,200 Based on last year's performance distribution, The employees received a rating of: (Note: If an answer contains numbers to the right of the decimal point greater than 0 , round up to the nearest integer.) (a) Poor: employees (b) Below average: employees (c) Average: employees (d) Above average: employees (e) Superior: employees Based on the projected performance distribution at year end and proposed pay increase amount per employee, the total proposed pay raise amount in dollars for each