Pay · HR glossary

Compensation Planning

Compensation planning decides how an employer will allocate pay and reward budgets. It may cover salary reviews, promotions, market adjustments, bonuses and expected workforce changes.

Example

Managers propose pay changes within a budget, and HR reviews the proposals for policy consistency and internal equity before final approval.

What to keep in mind

Keep different reasons for increases visible rather than treating every adjustment as merit. Check affordability, legal requirements and effects on pay relationships before communicating unapproved amounts.

Further reading

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