Real-Life Math
Customer service managers in banks are often asked to make recommendations for staff bonuses and salary increases.
"Everyone -- including senior managers -- is rated by their supervisor. It is often the supervisor's judgment that makes the difference between one person getting a 10 percent merit increase and another getting one percent," says Doug Nikiforuk, a customer service and operations area manager. "They have to reward the people who most deserve it and stay within the budget they are given."
Use your judgment and your math skills to give out merit increases to the following staff members.
Employee No. 1 has done an outstanding job. She makes $28,000 a year. You'd like to give her a 10 percent raise.
Employee No. 2 has also done an outstanding job. She makes $30,000 a year. You'd like to give her a raise in the 8 to 10 percent range.
Employee No. 3 has done a very good job. He makes $24,000 a year. You'd like to give him a 6 or 7 percent raise.
Employee No. 4 has done a very good job. She makes $29,500 a year. You'd like to give her a 6 or 7 percent raise.
Employee No. 5 has done a good job. He makes $29,500 a year. You'd like to give him a 3 to 5 percent increase.
Employee No. 6 has done a good job. He makes $24,000 a year. You'd like to give him a 3 to 5 percent increase.
Employee No. 7 has done a good job. She makes $31,000 a year. You'd like to give her a 3 or 4 percent raise.
Your budget for this year is $12,000.
You want to use as much of your budget for merit increases as you can. There are a number of different ways to achieve this. Come up with a plan that comes close to using the whole amount.