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Compensation professionals and HR professionals work with line and staff managers to plan the pay raise program. It is necessary to understand how the employee

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Compensation professionals and HR professionals work with line and staff managers to plan the pay raise program. It is necessary to understand how the employee performance distribution and choices of pay raise amounts per employee across performance categories influence. Estimating these costs will help compensation professionals prepare their requests for funding proposed pay raises. Proposed Pay Raise Per Employee ($) Employee Performance Rating Distributions (%) Last Year's Current Year-End (Actual) (Projected) 6 7 27 26 Superior Above Average Average Below Average 1,950 1,560 1,248 31 33 17 14 998.40 Poor 19 20 798.72 Number of Employees: 4,750 a) Based on last year's performance distribution employees received a rating of poor. b) Based on last year's performance distribution employees received a rating of below average. c) Based on last year's performance distribution employees received a rating of average. d) Based on last year's performance distribution employees received a rating of above average. e) Based on last year's performance distribution employees received a rating of superior

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