When your scenario's effective date is a custom date (rather than date-in-position or hire-date) the BalancedComp budget builder allows you to prorate pay increase based on the employee's date in position. But let's deep dive an example of the math
For this example, let's consider the following circumstances:
- scenario start date: 1/1/25
- scenario end date: 12/31/25
- scenario effective date: 1/1/25
- employee date in position: 7/1/24
We take ({scenario effective date} - {employee's date in position} / 365) x 100 to calculate the ratio of the year to apply.
So in this example, it would be 7/1/24 - 1/1/25 which is (184 days / 365 days) x 100 = 50.41%
If that employee qualified for a 5% raise from the merit increase matrix, we would give that employee 50.41% of the 5% they qualify for, or, 2.52%