Merit Matrix Reference: Settings, Formulas, and Common Issues

Quick Reference Guide

Status Definitions and Colors

Status	Color	Description	Available Actions
Draft		Initial creation and configuration	Edit, Delete, Start Calculation, Cancel
Calculating		AI processing performance data	View Progress, Cancel Calculation
Pending Approval		Ready for review and approval	Review, Approve, Request Revisions
Approved		Approved and ready for finalization	View, Finalize, Generate Reports
Finalized		Implementation-ready, locked	View Only, Generate Reports
Cancelled		Terminated before completion	View Only (Historical)

Cycle Types

Type	Description	Typical Frequency	Common Use Cases
Annual	Comprehensive yearly review	Once per year	Standard merit increases, performance bonuses
Quarterly	Performance-based adjustments	4 times per year	High-growth companies, performance corrections
Mid-Year	Semi-annual compensation review	Twice per year	Budget adjustments, market corrections
Special	Event-driven increases	As needed	Promotions, retention bonuses, market adjustments

Default Calculation Weights

Factor	Default Weight	Range	Data Source
Performance Rating	50%	0-100%	Performance Reviews
Goal Completion	30%	0-100%	Goal Management System
Development Progress	15%	0-100%	Skills Tracking
Tenure Factor	5%	0-100%	Employee Start Date

Merit Percentage Mapping

Composite Score	Merit Level	Default Action
90-100	Exceptional	Maximum merit percentage
75-89	Exceeds Expectations	Target + 70% of max difference
60-74	Meets Expectations	Target merit percentage
40-59	Below Expectations	50% of target percentage
0-39	Does Not Meet	Minimum or no increase

Key Formulas

Performance Score Calculation

Performance Score = ((Rating - 1) / 4) × 100
Example: 4.2 rating = ((4.2 - 1) / 4) × 100 = 80 points

Weighted Composite Score

Composite Score = (Performance × W1) + (Goals × W2) + (Development × W3) + (Tenure × W4)
Where W1 + W2 + W3 + W4 = 100%

Tenure Score Calculation

Tenure Score = min(Years of Service × 20, 100)
Maximum: 100 points (5+ years)

Budget Utilization

Utilization % = (Total Calculated Merit Amount / Total Budget) × 100

Role-Based Permissions Matrix

Action	Employee	Manager	HR Admin	Super Admin
View Own Calculation	✅	✅	✅	✅
View Team Calculations	❌	✅	✅	✅
View All Calculations	❌	❌	✅	✅
Create Merit Matrix	❌	✅*	✅	✅
Edit Matrix Settings	❌	❌	✅	✅
Start Calculations	❌	✅*	✅	✅
Approve Matrix	❌	✅*	✅	✅
Finalize Matrix	❌	❌	✅	✅
Cancel Matrix	❌	✅*	✅	✅
Generate Reports	❌	✅*	✅	✅

*Limited to their team/department or matrices they created

Industry Benchmark Ranges

Industry	Min %	Target %	Max %	Avg Budget
Technology	0%	5.0%	12%	4.2% of payroll
Healthcare	0%	3.5%	6%	3.1% of payroll
Financial Services	0%	4.0%	8%	3.8% of payroll
Manufacturing	0%	3.0%	5%	2.7% of payroll
Nonprofit	0%	2.5%	4%	2.3% of payroll
Retail	0%	2.0%	4%	2.1% of payroll

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Troubleshooting Common Issues

Calculation Problems

Issue: Merit Matrix Stuck in “Calculating” Status

Symptoms:

• Status remains “Calculating” for over 30 minutes
• No progress indicators updating
• Cannot proceed to next steps

Common Causes:

• Missing employee performance review data
• Incomplete goal management data
• System processing large employee dataset
• Integration connectivity issues

Solutions:

1. Check Data Completeness:
   • Verify all employees have performance reviews for the evaluation period
   • Confirm goal completion data is available
   • Review development progress entries
2. System Status Check:
   • Refresh the page to check for status updates
   • Check system notifications for error messages
   • Verify EPMS integrations are functioning
3. Recovery Actions:
   • Cancel calculation and restart if stuck over 1 hour
   • Contact system administrator if problem persists
   • Check for scheduled maintenance windows

Issue: Calculation Results Seem Incorrect

Symptoms:

• Merit percentages don’t align with performance ratings
• Budget utilization significantly over/under target
• Unexpected zero increases for good performers

Common Causes:

• Incorrect calculation weight configuration
• Missing or outdated performance data
• Budget constraints affecting calculations
• Performance threshold misconfiguration

Solutions:

1. Verify Configuration:
   • Review calculation weights sum to 100%
   • Check performance thresholds are logical
   • Confirm budget parameters are realistic
2. Data Validation:
   • Spot-check individual employee calculations
   • Verify performance review completion
   • Confirm goal data accuracy
3. Recalculation:
   • Return to Draft status and adjust settings
   • Test with smaller employee group first
   • Document changes for audit trail

Permission and Access Issues

Issue: Users Cannot Access Merit Matrix Features

Symptoms:

• “Access Denied” or “Permission Error” messages
• Merit Matrix menu options not visible
• Cannot view or create merit matrices

Common Causes:

• EPMS Merit Matrix feature not enabled
• Incorrect user role assignments
• Business-level feature restrictions
• License limitations

Solutions:

1. Feature Enablement Check:
   • Verify EPMS Merit Matrix is enabled in business settings
   • Confirm user has appropriate role permissions
   • Check feature licensing status
2. Role Verification:
   • Review user role assignments (HR Admin, Manager, etc.)
   • Verify role includes merit matrix permissions
   • Check for custom role configurations
3. Administrative Actions:
   • Contact system administrator for role adjustments
   • Request feature enablement if not active
   • Review business subscription level

Issue: Manager Cannot Approve Team Merit Calculations

Symptoms:

• Approval buttons not available for managers
• “Cannot approve this matrix” error messages
• Matrix stuck in pending approval for specific teams

Common Causes:

• Manager not assigned to employees in system
• Approval workflow configuration issues
• Budget threshold requiring higher-level approval
• Matrix creator cannot self-approve

Solutions:

1. Relationship Verification:
   • Confirm manager-employee relationships in system
   • Check organizational hierarchy setup
   • Verify manager has active team members
2. Workflow Configuration:
   • Review approval threshold settings
   • Check if matrix requires executive approval
   • Verify approval chain configuration
3. Process Alternatives:
   • Escalate to HR Admin for approval
   • Review and adjust approval thresholds
   • Document exception for audit purposes

Data Integration Issues

Issue: Performance Data Not Appearing in Calculations

Symptoms:

• Employees showing as “No Performance Data”
• Calculation warnings about missing reviews
• Merit calculations defaulting to minimum values

Common Causes:

• Performance review cycle mismatch
• Date range configuration errors
• Performance review system integration issues
• Incomplete review submissions

Solutions:

1. Date Range Verification:
   • Confirm performance period dates match review cycles
   • Check for overlapping or gap periods
   • Verify review completion deadlines
2. Integration Check:
   • Test performance management system connectivity
   • Verify data synchronization is working
   • Check for recent system updates or changes
3. Manual Verification:
   • Spot-check individual employee reviews
   • Confirm reviews are submitted and approved
   • Validate review ratings are within expected range

Issue: Goal Completion Data Missing or Incorrect

Symptoms:

• Goal completion showing 0% for all employees
• Inconsistent goal data across team members
• Goal completion not reflecting actual achievements

Common Causes:

• Goal management system not properly integrated
• Goals not marked as completed in system
• Date range mismatches between goals and merit periods
• Goal calculation methodology differences

Solutions:

1. Goal System Integration:
   • Verify goal management system connectivity
   • Check data mapping between systems
   • Confirm goal completion calculation methods
2. Data Accuracy Review:
   • Validate goal completion percentages manually
   • Check goal deadline alignments
   • Verify manager approvals on goal achievements
3. Configuration Adjustments:
   • Adjust goal completion weight if data unreliable
   • Consider manual goal data entry for current cycle
   • Document data quality issues for system improvement

Budget and Financial Issues

Issue: Budget Utilization Significantly Over Target

Symptoms:

• Calculated merit total exceeds budget by >10%
• Multiple high performers receiving maximum increases
• Department budgets severely imbalanced

Common Causes:

• Unrealistic budget targets
• High-performing employee concentration
• Market adjustment needs not accounted for
• Historical spending pattern changes

Solutions:

1. Budget Reassessment:
   • Review budget against industry benchmarks
   • Consider market conditions and inflation
   • Evaluate historical spending patterns
2. Calculation Adjustments:
   • Reduce maximum merit percentage
   • Adjust performance thresholds
   • Consider across-the-board percentage reduction
3. Strategic Options:
   • Request additional budget approval
   • Implement phased increase schedule
   • Consider non-monetary recognition alternatives

Issue: Budget Utilization Significantly Under Target

Symptoms:

• Calculated merit total uses <70% of available budget
• Many employees receiving minimum or no increases
• Budget surplus larger than expected

Common Causes:

• Performance distribution lower than expected
• Conservative merit percentage settings
• Budget over-allocation from previous years
• Performance data quality issues

Solutions:

1. Performance Analysis:
   • Review performance rating distribution
   • Investigate potential rating calibration issues
   • Check for incomplete performance data
2. Parameter Adjustments:
   • Increase target and maximum merit percentages
   • Lower performance thresholds for merit eligibility
   • Consider one-time bonus distributions
3. Strategic Opportunities:
   • Implement retention bonuses for key employees
   • Invest in professional development programs
   • Reserve funds for mid-year adjustments

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Emergency Procedures

Matrix Needs to be Cancelled Mid-Process

1. Navigate to Merit Matrix details page
2. Click “Cancel Matrix” button
3. Provide cancellation reason
4. Confirm action (irreversible)
5. Document reason for audit trail

Urgent Approval Needed Outside Normal Process

1. Contact HR Administrator or Super Admin
2. Provide business justification
3. Use emergency approval process if available
4. Document exception and rationale
5. Follow up with normal process validation

Data Correction After Finalization

Note: Finalized matrices cannot be edited

1. Document correction requirement
2. Create new matrix for adjustments
3. Note reference to original matrix
4. Process through normal workflow
5. Maintain clear audit trail

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Support and Escalation

Self-Service Options

• Review this troubleshooting guide
• Check related Merit Matrix help articles
• Verify system status and notifications
• Test with minimal data set

When to Contact Support

• System errors persisting over 1 hour
• Data corruption or calculation anomalies
• Permission issues affecting multiple users
• Integration failures with external systems

Information to Provide When Requesting Support

• Merit Matrix ID and name
• Current status and error messages
• Steps taken to reproduce issue
• Number of employees affected
• Business impact and urgency level
• Screenshots of error conditions

For additional guidance, see our comprehensive Merit Matrix articles on workflow, calculations, and implementation best practices.