Salary Adjustment Options
Salary adjustments can be made for an individual employee or for a group of employees all at once. The latter can be accomplished in three different ways: 1) by selecting a group of employees and modifying the Pay Rate that applies to all of them, 2) by applying a Pay Rate increase in a Class template, and 3) through an external data import process. The external data import procedure is performed by system administrators whenever large-scale organization-wide events adjustments are made, so it will not be covered here.
Individual Employee Salary Adjustment
- In PowerPlan, from the Payroll menu ⇨ Search. Enter the Search criteria to locate the employee for whom the adjustment will be made.
- Click on the Events ❶ tab in the Employee History panel. You will see all the unique events associated with the employee.
- The current Pay Rate appears on one line ❷, in the above example showing the employee’s last pay rate of $9.96 set for the first pay period of 2018. This line can be edited, changing the $9.96 pay rate directly.
- You can add a second Pay Rate line ❸ with the fiscal year, the pay rate (in this example $11.50), and the pay period when the new pay rate commences. The new pay rate will supersede the previous one when the pay period occurs. Make sure you are applying this adjustment to the appropriate scenario ❹.
Alternatively, you can adjust the pay rate amount by augmenting the current pay rate. This can be done by either applying a percentage or dollar amount increase to the current amount.
- Select either the Pay Rate $ Increase or a Pay Rate % Increase ❺, set the Pay Year and Pay Period for its commencement, as well as a dollar Value for $ Increases or a decimal Value for % increases (e.g. 0.03 = 3%). The new Pay Rate will be calculated by applying the increase to the pay rate preceding the increase.
- Click Save.
Salary Adjustments by Group
Group Defined by Selection
Salary adjustments can be made for a whole group of employees by selecting individuals that comprise the group and then applying the salary adjustment.
- In PowerPlan, from the Payroll menu, select Search. Enter the search criteria under either the General or Search Group tab to filter your search results down to the group that corresponds to the criteria entered. If the group you wish to apply the salary adjustment to cannot be captured by such filtering, then simply click on Search; all the employees in your organization will appear in alphabetical order.
- Check all the employees that the salary adjustment will be applied to in the first column ❶.
- From the Options ❷ pull-down ⇨ Salary Adjustment ❸. The following screen will appear.
- Leave the Salary Adjustment Type on Pay Rate Increase or COLA Increase ❶ unless you are using and you wish to apply the adjustment to step rates ❷ (covered below). The remaining settings are identical for Pay Rate and COLA increases.
The COLA Increase option may not be available in the Salary Adjustment window, depending on the setup options chosen by your System Administrator.
- Select the Salary Adjustment Options ❸:
- Based on Hire Date – Pay rate adjustment will be effective on the anniversary of the employee's hire date.
- Selected Pay Period – Pay rate adjustment will be effective on the first day of the selected pay period/year.
- Based on Salary Adjustment Date – Pay rate adjustment will be effective on the anniversary of the date set as the employee's Salary Adjustment Date. If this option is selected and any of the selected employees do not have a Salary Adjustment Date associated with them, a message will appear indicating that the adjustment could not be made. Either select a different option for these employees, or add a Salary Adjustment Date to the employee record(s) and perform the adjustment again.
- Select the Scenario, Pay Year, and Pay Period (which will only be available if you have chosen Selected Pay Period).
- Select either Percent or Value for the Salary Adjustment Factor ❹. Enter the dollar amount if you have chosen Value; enter the percent in decimal form if you have chosen Percent.
- Click on Apply. A confirmation message will appear. Click on the View Log button for details.
If you have chosen Step Increase for the Salary Adjustment Type, this will be the screen that will appear:
- Under the Salary Adjustment Type ❶, choose the number of Steps that this adjustment will comprise.
Set the Salary Adjustment Options as per the above instructions.
Group Defined within Class Templates
Finally, you can make a salary adjustment to an entire group of employees that belong to an employee class by applying a Pay Rate and/or COLA increases to the class. (You require administrative rights to do this.)
- From the Payroll menu option ⇨ Configure ⇨ Employee Class Template. The following panel will appear on the left side of your screen (without the pre-selections in this screenshot).
- Select the Employee Class and all the other options in the data selection area ❶, and then click on Show if you wish to see existing events. The listing of events and all the other data corresponding to the above selections will be displayed. If you do not wish to you existing events, then proceed to the next step.
- Click on Insert ❷. A new line ❸ will appear with default data present in the Employee Class and the Scenario cells. Set the Pay Year and Pay Period when the pay increase will commence, and then select either the Pay Rate $ increase or the Pay Rate % Increase from the pull-down for the Event cell. If you have chosen the Pay Rate $ increase event, then enter a dollar value in the Value cell, and if you have chosen the Pay Rate % event, enter the percent decimal value (0.03 = 3%) in the Value cell. Alternatively, you can set a flat Pay Rate if all the individuals in the selected class are paid the same amount, but this would be an unlikely situation.
If you are making COLA increase adjustments, then choose either COLA $ Increase or COLA % Increase and add either the percent or dollar value as required.
- Click on Save. The changes in the Class Template will be effective only after the changes have been processed and moved within the payroll module.
If a pay rate increase is applied to an individual employee record for the same pay period in which it is applied within a class template, the pay rate increase in the employee record will override the pay rate increase specified in the class template. Thus, if a 3% increase is specified in the Class Template, and a 5% increase has been added to an employee record of an employee who belongs to that class, that employee will get the 5% pay increase.