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Adjustment Reason

Adjustment reasons provide structured categories for documenting why salary changes occur.

Purpose:

  • Standardize adjustment categorization across organization
  • Enable reporting and analysis by adjustment type
  • Ensure consistent documentation
  • Support policy compliance (e.g., track promotion-related increases)

Fields:

FieldTypeRequiredDescription
Reason CodeTextYesUnique identifier (e.g., "PROMO", "PERF", "INIT")
Reason NameTextYesFull reason name (e.g., "Promotion")
DescriptionTextNoDetailed explanation of when to use this reason
ActiveToggleYesEnable/disable reason for selection

How to Configure:

  1. Navigate to Salary Adjustment > Configuration > Adjustment Reason
  2. Click Insert button
  3. Fill Reason Code (short identifier, uppercase recommended)
  4. Fill Reason Name (clear, descriptive name)
  5. Add Description explaining when to use (optional but recommended)
  6. Set Active = Yes
  7. Click Save

Best Practices:

  • Create reasons that align with HR policies
  • Use clear, self-explanatory names
  • Keep list manageable (5-10 reasons typically sufficient)
  • Review annually and deactivate unused reasons
  • Document in Description field when each reason should be used

Common Adjustment Reasons:

Reason: Initial Salary

  • Code: INIT
  • Name: Initial Salary
  • Description: First salary assignment for new employee during onboarding
  • Use Case: New hire salary setup

Reason: Promotion

  • Code: PROMO
  • Name: Promotion
  • Description: Salary increase due to promotion to higher position or level
  • Use Case: Employee promoted from Staff to Senior, or Senior to Manager

Reason: Performance

  • Code: PERF
  • Name: Performance Increase
  • Description: Merit-based salary increase following performance review
  • Use Case: Annual or bi-annual performance-based raises

Reason: Cost of Living

  • Code: COLA
  • Name: Cost of Living Adjustment
  • Description: Annual adjustment to maintain purchasing power due to inflation
  • Use Case: Organization-wide annual COLA increase

Reason: Market Adjustment

  • Code: MARKET
  • Name: Market Adjustment
  • Description: Adjustment to align salary with current market rates for position
  • Use Case: Retention adjustment when employee salary below market

Reason: Correction

  • Code: CORR
  • Name: Salary Correction
  • Description: Fix error in previously set salary amount
  • Use Case: Correcting data entry mistake or calculation error

Reason: Demotion

  • Code: DEMO
  • Name: Demotion
  • Description: Salary decrease due to demotion to lower position or level
  • Use Case: Position change to lower level

Reason: Policy Change

  • Code: POLICY
  • Name: Policy Change
  • Description: Adjustment due to organizational salary policy or structure change
  • Use Case: Company-wide salary structure revision

Reason: Other

  • Code: OTHER
  • Name: Other Reason
  • Description: Salary adjustment for reasons not covered by standard categories
  • Use Case: Unique situations requiring detailed explanation in Reason field