With a 2% merit budget, is a performance-by-position matrix still worth the effort?

We went flat, 2% for everyone not on a formal improvement plan, and I would do it again. The administrative saving was real and nobody left over it. A 1.2 point difference on a salary of 38,000 is about nine pounds a week before tax.

A middle route: give the flat 2% and hold back 0.3% of the budget as a targeted pot for people below 90% compa-ratio with strong performance. You get the simplicity for 85% of staff and still do something about the cases that matter.

Whichever you choose, check the union and staff forum position first. In our institution a flat award was read as a cost-of-living settlement and set an expectation for the following year's negotiation.

Thank you. We are going with the four-cell version. I tested it on last year's population and 71% of people land on 2.5% or 1.5%, so for most managers the conversation is straightforward, and the 3.5% cell goes to about 240 people who are well below midpoint.