Compensation Budgeting and Planning

Like everything else, compensation costs require budgeting. Sometimes, you are given the budget. Other times, you are asked to prepare the budget. Either way, you need to figure out how to distribute the money.

For example, do you want all employees to receive the same percentage increase? If so, the process is obviously easy. If not, what variables do you want to reflect? Position in the salary range, either by quartiles or just above or below midpoint? Performance rating? Nonexempt, exempt, or management level?

Depending on what variables you want to reflect, we will custom design a sophisticated yet simple electronic spreadsheet for you to use, based on your actual employee data, so you can quickly and easily determine the impact of different percentages of pay to develop a budget, or "back into" the percentages based on a budget you're given. All you need to do is download your employee data for us and we'll do the rest. We give you the spreadsheet so you can test as many different alternatives as you want as many times as you want, in a matter of minutes, without paying us to run and re-run new scenarios. In succeeding years, you can easily update the spreadsheet and reuse it for no additional cost.

Companies that use a merit matrix approach to salary increases especially find our spreadsheets particularly effective and extremely affordable, unlike other proprietary compensation systems on the market today that are costly, require significant training, and tie you into annual maintenance contracts.