Finally know and understand the true cost impact of a 4% merit increase.

When we think about the impending merit budgeting process, we automatically think about the increase in salaries. After all, that is the baseline of whatever percentage budget we are told to model. However, there is a bigger and more complicated picture here, that almost always gets simply estimated, or worse simply overlooked. Salary is a baseline for other benefits, allowances, etc.  Therefore, when salary is increased, the other reward elements that are a formula based upon salary will increase as well. 

At uFlexReward we call this the Ripple Cost Impact. This ripple effect is sometimes hard to calculate because you do not have the complete list of Total Reward elements digitized within a single system. Without digitization this becomes an exceedingly manual process (yes, we are lumping Excel in here!) or an educated "benefits load" guess.    With the uFlexReward platform we are able to quickly determine the bottom-line impact on the organization of for example a 4% budget (which will be significantly greater than 4% on salaries depending upon your total reward design) as all reward elements (allowances, benefits, perks, pension schemes, mobility costs, etc.) are digitized within the system.  This allows for multiple scenarios across a multitude of data cuts to be done quickly giving you the opportunity to weigh differentiated merit allocation to best utilize your budget; all while knowing the total rewards ripple impact!