I am trying to create a simple metric for normalizing raises. I figure three elements need to be considered: time, %, and gross raise amount. My take...
(24-M) * (R) * (G/10,000)
M = Months since last raise
R = Raise %
G = Gross raise ($)
A standard test case is 10K (10%) annual raise on 100K = 12 * 10 * 1 = 120.
In the hypothetical example of Bob getting an annual 15% raise on 30K ($4500) for two years:
Y1 = (24-12) * (15) * (.4500) = 81
Y2 = (24-12) * (15) * (.5175) = 93.15
In Y3, he gets a 14% raise:
Y3 = (24-12) * (14) * (.55545) = 93.32
Thoughts? Input will be rewarded with the potential posting of a z74 blogger hammered.
4 comments:
Whoa. I think I need to be hammered to understand this.
I'm not sure what the result (120, 81, etc.) is supposed to represent. A monthly raise? An index? Maybe that will clear it up.
I agree with Eric. What is the result supposed to represent?
Just a standardized number for comparison. When A says "sweet, I received a 10% raise", what that means in terms of my 3%, taking into account the gross gain, and the time since the last raise.
Wouldn't it just be gross $ divided by number of months since last raise?
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