Allocation Exceptions allow HR Administrators to fine-tune merit allocation percentages for specific parts of the organization after the overall Merit Allocation Percent has been set. Exceptions can be applied at the Country, Division, Department, or individual Employee level to reflect known business conditions or compensation strategies.
Exceptions override the global merit allocation percentage and are factored directly into the Merit Budget calculation.
Where to Find Allocation Exceptions
Navigate to:
Configuration → Exceptions
The Exceptions page is organized into four tabs:
Country
Division
Department
Employee
Each tab follows the same structure and logic, with increasing levels of granularity.
Budget Overview (All Tabs)
At the top of each Exceptions tab, you will see a Budget Overview panel.
This section displays:
Merit Budget
Promotion Budget*
Other Budget*
Lump Sum Budget*
Bonus Budget*
* Promotion, Other, Lump Sum, and Bonus budgets are used for SimplyMerit Insights reporting only and do not affect merit roll-up calculations.
As exceptions are added or adjusted, the Merit Budget updates automatically to reflect the changes.
Country Exceptions
Country Exceptions apply a specific merit percentage to all employees within a selected country.
How Country Exceptions Work
Select a country from the dropdown.
Enter a Merit Percent to override the global allocation.
Save changes to apply the exception.
All employees assigned to that country will inherit the specified merit percentage unless overridden by a more specific exception.
Division Exceptions
Division Exceptions apply a merit percentage to employees within a specific division.
How Division Exceptions Work
Select a division from the dropdown.
Enter a Merit Percent for that division.
Save changes.
Division-level exceptions override Country exceptions but can still be overridden by Department or Employee exceptions.
Department Exceptions
Department Exceptions provide more granular control by applying a merit percentage to a specific department.
How Department Exceptions Work
Select a department from the dropdown.
Enter a Merit Percent for the department.
Save changes.
Department exceptions override Country and Division settings.
Employee Exceptions
Employee Exceptions allow HR Administrators to assign a custom merit percentage to an individual employee.
How Employee Exceptions Work
Search for an employee or use the dropdown to select an employee.
Enter a Merit Percent for that individual.
Save changes.
Employee-level exceptions override all other exception levels and are the most precise control available.
Exception Hierarchy (Order of Precedence)
When multiple exceptions exist, SimplyMerit applies them using the following hierarchy:
Employee
Department
Division
Country
Global Merit Allocation Percent set under Budget Amounts
The most specific exception always takes precedence.
Best Practices for Using Exceptions
Set the global Merit Allocation Percent first on the Budget Amounts page.
Use higher-level exceptions (Country/Division) sparingly.
Apply Employee exceptions only when necessary.
Review the Merit Budget after making changes to confirm accuracy.
Remember that exceptions directly impact budget roll-ups and manager-visible allocations.
Some of our clients use this in reverse, where they set everyone at the Employee level of exceptions - this approach also works.
Summary
Allocation Exceptions offer flexibility to adjust merit allocation percentages according to geography, organizational structure, or individual circumstances. By applying exceptions thoughtfully and understanding their hierarchy, HR Administrators can maintain accurate budgets while supporting nuanced compensation strategies.
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