Compensation Management is an add-on module to HR Enterprise that allows the company to establish budgets for their cost centers and/or managers. It provides a series of worksheets, rules, controls, and approval workflows for performance-based and other compensation management to the entire organization.
Our Compensation Management module will allow you to:
- Create a compensation cycle
- Enter budget data
- Allow managers to propose increases for their employees using the budget data
- Use workflows to route and approve the increases
- Create job changes and base compensation history records when the cycle is finalized
A compensation cycle is created to determine what potential pay changes will be affected, any performance review results that should tie to the budget, the time frame of the cycle and employee criteria. You can have multiple cycles if your budget/review/pay change criteria vary across different groups of employees.
After creating the compensation cycle, comparative budget information can be added. Based on the pay change types selected in the cycle, you can allocate the appropriate percentages/amount you wish for the budget. As in the example below, I have merit and promotion as pay change types. When updating my budget I allocate a total percentage or dollar amount to merit and promotion. This allocation is used for all employees within the budget.
Based on the total percentage/amount budgeted, managers are able to propose a merit or promotion increase for their employees. After all managers complete the compensation worksheet, the compensation cycle manager can review all proposed increases and approve or reject. Approvals will update the employee's base compensation automatically and add any additional merit increases as one-time earnings.
Is the Compensation Management Module right for your company?
Compensation management is a great way to make sure your company is staying on budget and keep record of budget changes within the system. We are happy to provide additional information if you would like to know more. Simply reach out to us at email@example.com.
Keep an eye out for our Compensation Management Webinar later this year.