To adequately budget for employee salaries, you must plan for employee pay changes and assess

the financial impact of those changes on your salary budget. Typical types of pay changes include:

Merit increases
Cost of living adjustments
Regularly planned increases based on seniority changes

You can choose from a variety of methods for entering employee pay changes. In some cases, you
might make a pay change, such as a merit increase, to an individual employee's record. You can
enter changes that take effect in the next payroll cycle, or you can enter a future date on which a
pay change becomes effective.

If your organization performs annual salary reviews for all employees at the same time, you
typically need to enter pay changes for large groups of employees. In this case, you can analyze
and review changes, and determine their impact on your financial budget, before you apply the
changes to employee records.

To analyze and adjust pay changes before you apply those changes to employee records, you can
create salary review groups. When you work with salary review groups, the system stores the
information that you enter in a temporary worktable.

If you plan to make pay changes to groups of similar employees, such as all workers who are paid
on an hourly basis, you can use a salary review group to apply a flat amount or percent increase to
the entire group. You can organize similar employees into a review group and apply the changes
to the group.

When you are satisfied with the pay changes, you can run a program that updates employee records
with the information in the worktable.

For employees whose jobs are associated with pay grade steps, their pay rates are also associated
with the pay grade step. To change an employee's pay, you must either advance the employee to
the next pay grade step, or change the pay rate associated with pay grade steps. When you need to
advance several employees to the next pay grade step, you can save time and reduce data entry by
running a program to simultaneously advance a group of employees.

After you have finished entering proposed pay changes for a salary review group, you can print
the Employee Salary Analysis report. Use this report to review employee's salary histories and
proposed pay changes.

Wage and salary administration includes the following tasks:

Entering pay changes for individual employees

Working with salary review groups
Working with pay grade step administration
Reviewing the Employee Salary Analysis report