Please make sure you have followed the steps here before moving forward with the steps in this article.
If you selected “yes” to include performance evaluation results in some way, you will move next to the performance review tab and set up the tiers. If you selected no, please skip to the next step, participants.
Performance
Create your performance review tiers. Approvers and Recommenders will see the score label from their employee’s performance evaluation results. They will not see the percentage.
Decide a label for employees who did not receive a performance score.
Participants
The next step is to determine which employees are going to be included in the cycle. You have the following options.
Create a list in the system by determining which employees are included based on their hire date. In the next screen you can select specific employees as needed.
2. Import a List.
Roles
Automatically, the employee’s direct manager is selected as the approver. The employee’s manager’s manager is selected as the recommender. You are able to toggle off managers that should not be included in this process as an approver/recommender and the responsibilities are automatically assigned to the next manager up the hierarchy.
Example:
Amelia Florance is a direct manager to 6 employees included in this compensation cycle. She is automatically assigned to be the recommender for those 6 employees.
Amelia reports to Marvin Luck. Marvin is automatically assigned to be the approver for all recommendations that Amelia made for her 6 employees.
If we toggle off Amelia’s role in this compensation cycle, she is no longer being asked to be a recommender for her employees. Those recommendations have now been assigned to Marvin.
Budgets
Eligible Employee Pay x Increase/Employee = Raise Budget
Eligible Employee Pay: Total base pay for all eligible employees. This has already been calculated for you.
Increase/Employee: % increase on total eligible employee pay
Raise Budget: The calculated total budget increase of base pay across all eligible employees
Determine the average percentage for increase per employee.
Select the raise guidance if you plan to use one.
Tenure Based Guidance: Set up the tenure ranges, entering the target percent increase based on their tenure.
Salary Based Guidance: Set up the salary ranges, entering the target percent increase based on their current salary.
Fixed Percent Guidance: Provide the increase (%) that will apply to all employees as raise guidance.
If you do not plan to use a raise guidance, select No to get to the next step.
Distribute
In this step you have the option to vary the distribution of funds to different leaders. Use the table below to adjust amounts. We recommend that you leave funds unallocated to allow for your recommenders and approvers to have room to suggest increases over guidance. You will also not be allowed to go over budget!
Summary
Overall summary of the compensation cycle you have set up. Option to click “Save as Ready” or go ahead and click “Launch” if no changes need to be made. Launch will immediately start the compensation cycle.
Click HERE to learn how to manage the active compensation cycle and complete it once finished.