DISCLAIMER: The data and information used in this analysis are fictional and for illustrative purposes only. They do not represent real data or insights.

We dive into an insightful analysis of employee compensation, focusing on merit increases. Our primary data consists of employee information, including their:

• Grade
• Performance rating
• Annual basic salary

One of the key factors we investigate is the impact of an employee's grade and performance on their merit increase rate. By analyzing the spread of annual basic salaries across different grades, calculating the compa-ratios, and further determining the merit increase rate, we gain a comprehensive understanding of the organization's compensation strategy.

Note: Compa-ratio is the ratio of the actual pay to the midpoint of a pay range.

Additionally, we also explore:

• The overall distribution of merit increases
• Focusing on their normality
• The correlation between the numeric grade and payout

Our analysis culminates in a detailed representation of payouts across all grades, thus providing valuable insights into the efficiency and effectiveness of the organization's pay structure.

The knowledge gleaned from this analysis is critical in ensuring a fair and motivating compensation strategy, thereby contributing to employee satisfaction and organizational success.