Problem:
You are working on a calendar year basis and give all raises on january 1. your market position at the beginning of the new plan year is 4.0% below the market. that is, your overall salaries are 4.0% below the midpoints of the market-based salary structure. the anticipated annual market movement during the new year is 3.0%. your pay policy is to match the market at the middle of the plan year.
Required:
Question 1) What is the market based salary increase budget recommendation? Explain the solution in detail.