A salary matrix is a matrix created to generate salary based on the seniority and category variables.
The creation of a Salary Matrix is done by navigating to System Settings → Staffing → Salary Matrix. Salary matrices are separated by department.
Creating a salary matrix
In order to create a salary matrix, click the +Category button. Here, you are able to add a name and some default values right away.
| Name | The name of the matrix category. The only required field. |
| No. | Add a number (optional). |
| Annual salary | Which annual salary should be default for this category. |
| Year limit | The number of hours expected for this category in a year. |
| Mark-up | The mark-up used to find the invoice price. |
| Mark-up factor | The mark-up factor used to find the invoice price. |
| Overriding social cost | Social cost is something that is calculated from salary and is used to reflect any additional costs (employer fee, etc.). |
After creating the matrix category, you can start adding seniority steps by clicking +Add seniority. The box you see when clicking this is similar to the one above, except it is only relevant to the current step. By default, these are the same as the category matrix.
Keep adding more seniority steps until you have added all the necessary ones.
Tips
Should you only have 6 steps, you do not need to add more above this. The top value will be in effect for any later step.
Calculating salary and invoice price
In order to get a better understanding of how the system calculates salary and invoice price, read this article or contact Support.
Salary
The salary calculation is fairly easy; the system takes the Annual Salary and divides the number on the Year Limit, giving you their hourly salary. If you are looking for a weekly or monthly salary, simply divide by 52 or 12.
The example below shows that the matrix category “Teacher” has two seniority steps, 5 and 6. At step 5, the annual salary is set to 355 000,- with a year limit of 1950 hours. The calculation here is 355 000/ 1950 = 182,05 for an hourly salary. Note that the calculation only takes two decimals into account.
As we can see in the example, the annual salary also increases when you reach step 5, in other words, from the 5th year. The annual salary is increased while the year limit is the same, leaving us with an increased hourly salary as well.
Note
The lowest seniority step will always be the relevant one until you hit another step. In other words, if you have a seniority of 3 years, you are still only on step 0 because you need 5 years of work in order to hit the next step.
Invoice price
The invoice price takes a basis in the salary with a mark-up or mark-up factor being added to this. You may have a mark-up, a mark-up factor or both.
In the example above, we can see that the invoice price per hour is 182,05 (the salary) * 1,6 (the mark-up factor) = 291,28. Note that only two decimals are taken into account.
Assigning an employee to a salary matrix
Once a salary matrix has been created, you can assign it to an employee. This is done directly from the Candidate Card by pressing +Add in the Salary Matrix box. Here, you simply choose which matrix the employee should be connected to. You may assign the employee to more than one matrix. By editing the employee settings on the candidate card, you may also set seniority.
This means that salary will automatically be calculated when creating a new job for the employee. As you can see in this example, we have assigned the matrix “Teacher” (as used previously as well). Seniority is set to 5 years.
If an employee is connected to several salary matrices, it will appear like this. You may wish for an employee to be connected to several matrices and choose a salary based on the project. Because of this, you can also set a standard salary matrix when creating a new project. When a job is created in the project, there will be performed matching between the employees’ matrices and the projects. If there is a match, that specific matrix will be suggested when creating a job, and the salary will be adjusted accordingly.
When creating a new job
When creating a new job for an employee, either from the project or the Staffing Plan, you will see the following fields:
In this case, the project has found several matches between the employee and the project, resulting in a drop-down menu. The salary and invoice price will change when you select the different matrices.
Updating a salary matrix
You may also update your salary matrices. This means that any changes made in the annual salary or invoice price may be pushed to any employee currently connected to the matrix. In the example below, we have updated the prices in the matrix “Teacher,” as previously used, and added seniority steps 8 and 12. In order to update the employee connected, press the Refresh symbol (marked in the picture). When pressed, you will get an overview of the employees connected to the matrix. You may select or deselect employees before pushing the price update.
Warning
When updating a salary matrix, any employee connected will appear in the overview. However, performing this action will change any currently active-, expired- or future job. Keep this in mind before updating.
- Do note that logged work will not be changed, only the jobs. However, any work logged after this is done will have the new price.
- You need to have a least one active employee connected to the matrix in order to perform the update.
- The actual update is not performed until you press Save in the next picture.
- The changes made by updating will be irreversible.
Once an employee is selected and we press the Refresh symbol, which appears, you get a final confirmation box. Press Save in order to push the price change to all the selected employees.
Note
If you feel slightly unsure whether to update your salaries or not, contact us at support@recman.no.