Lesson Library

Comp Review Planning

Comp Review Planning is where HR and Finance collaborate to establish a budget for Salary and Equity Reviews.

Before starting a Comp Review, make sure Employee Data Management is up to date, like your employees titles, job levels, managers, and market data cuts.
Review the Company Profile to make sure things like revenue and compensation philosophies are correct. And lastly, review Market Compensation and place any adjustments needed to your data.

Begin Planning

0:29 Let’s start a Compensation Review cycle! The Planning section of the review is found under Administration, called Comp Review Planning.
Click “Plan Next Comp Review” and enter a Title for your review.
Select the start and end dates, the start date selected is a target and the review will only start when the HR Admin indicates that the Planning portion is finished.
The end date selected will impact email notifications sent to your Compensation Reviewers, for example, reminders are sent to them if the Review is scheduled to end in 5 days and they haven’t completed their review yet.
Select the toggle for the Review you’d like to plan for, for this example, we’re planning a Salary Review.
Finally, select the performance rating scale for your review. The performance rating selected will impact the Merit Increase Matrix.
To start planning your review, click “Create”

At this point, we are in the “Planning” stage of the review. Click on the progress bar to see all of the stages of the Comp Review, and the steps needed to complete each stage.
Clicking on a step in the slide-out will highlight where you should navigate to complete the task.

To edit the name and dates of the Comp Review, click on the pencil icon next to your review Title. For example, if you’d like to change the dates of your review, you can edit them here. The review dates can only be edited while the review is in the Planning stage.

Budgeting

2:00 For accurate budgeting, upload any known performance ratings and promotions using the respective template for each. To download the templates, click on each respective upload button, and select either CSV or Excel format.
Enter the data for Performance Ratings and Promotions, then upload each file into your review.
Kamsa will use the performance rating and promotions to calculate a budget for your review.

Work collaboratively with your CEO and Head of Finance to align your Actual Budget with the Calculated Budget. If your Actual Budget is less than the Calculated Budget, you can adjust the percentages under Merit Increase so they align.

The budgeting factors for eligible employees are calculated by country, based on Market Data Cuts.
When you expand the Calculated Budget you’ll see the budget breakdown by Merit Increase, Market Adjustment, and Promotion Increase. If you’re also reviewing employees that have a target commission and you plan to give Comp Reviewers a certain budget to stay within for increases to Target Commission amounts, toggle the Calculated Target Commission Budget, to establish and calculate Commission Budget.

Click “Edit” to make changes to the Merit Increase Index, Market Adjustment and Promotion Increase by country.
The percentages entered by default are CultivatePeople’s recommended merit increase guidelines, based on compa-ratio and performance rating.
For example, for an employee in the U.S. who has a competitive compa-ratio, between 85% and 115%, with a performance rating of 2 out of 3, their merit increase recommendation will be 3% of their salary.
If you’d like to enter a cap for the % of salary increase for market-based adjustments for Comp Reviewers, toggle Market Adjustment on and enter the maximum increase percentage. For example, for employees whose base salary are below 85% compa-ratio (which is considered below the competitive range), you can enter 10%, indicating that Comp Reviewers cannot exceed a 10% salary increase for employees.

For Promotion Increases, you can choose to enter a % of Payroll for Promotion Increase Budgets; for example, entering 1% here is common so that you can add an additional 1% of payroll to your budget to factor in the cost of salary increases for promotions company-wide.

You can also enter the % of increase guideline here for promotions for employees; 10% is the most common % entered here, so that in Comp Review, the Recommended New Base Salary for an employee getting promoted reflects 10% increase over their current salary.

When you’re done, click “Save Changes”

Eligibility

4:55 Next, let’s Manage Eligibility for Salary and Total Cash.
For example, let’s say employees who were hired after October 1st will not be eligible for this review:
Select Manage > Date of Hire > Apply. The Employees hired on or after the selected date will be excluded from this Salary Review.
Once you click Apply, you’ll see a list of the employees who are NOT eligible for this review based on their Date of Hire. From this list, you can select any exceptions to this rule by clicking on the employee name, then click Apply.
To edit or add eligibility rules, click Manage.
To edit your list of exceptions, click Manage Eligible.

Now, let’s Manage”Total Cash Eligibility - employees eligible for Total Cash during Comp Review are typically Sales employees.
It’s helpful to view the list of employees who currently have Target Commission opportunity in Employee Data Management; click the link and Employee Data Management will open in a new tab.
With this in mind, Select the Job Families that are eligible for Total Cash Review by clicking on the job family, then click Apply. To see a list of Total Cash eligible employees, click See List.

When you’re done managing eligibility for Salary Review, click Back to Plan to return to the budgeting page.

Comp Review Flow

6:20 At any point during your Compensation Review Plan, you can edit the Comp Review Flow and send invitations for users to log into Kamsa.

By default, Kamsa automatically selects each employee’s direct manager as their Comp Reviewer. To make changes to the Reviewers, for example, to keep the Reviewers at Director level and above,  Click Edit.

When you hover the mouse over an employee’s name, their Kamsa Job Match will appear. To change a single employee’s Reviewer, click on the line, and select the desired Reviewer from the dropdown.

To make bulk changes to all of a manager’s direct reports, click Assign All and select the desired Reviewer from the drop down. All of this manager’s direct reports will be reassigned to the employee chosen.

When you’ve made all necessary changes to the Comp Review Flow, click Done. All assigned Reviewers will be listed, with the option to send user Kamsa invitations. Here, you can give each user Kamsa access. The Comp Reviewer role is assigned by default, or you can select another role.
If you’re not ready to send user invitations yet, click Close or input their email address and they will have access to Kamsa. They will only be able to see the Comp Review once you, as the HR Admin, start the comp review.

Reviewing Allocated Budgets

7:47 To see all allocated budgets, click “Review Budget Summary” from here, you can view the Comp Review Flow, and export the budgets.

Congratulations! You have completed planning for salary review! Click “Start Comp Review” to start the Compensation Review!  

At this point, the Comp Review stage is updated to In Progress.

As the Comp Review is in progress, the HR Admin and Users with a Role permission to “View” or “Edit” the Comp Review, can click “View Reviews” to see or edit the reviews.

When all reviews are complete, the HR Admin will receive an email notification indicating it’s time to approve the reviews.

Details about the Comp Review Approval Process can be found in the Approval Process video!