You're only 5 steps away from defining your budget!

During this step, you can opt-in for the different parameters you'd like to take into account for your general increase:

Chose the ones that make sense for you and click on Next.

This is the step where you select the eligible employees for the current compensation review campaign. By default, all employees are added.

Usually, employees who have been hired recently (normally with less than 6 to 3 months of experience in the company) are excluded from a salary increase. That's why you can filter out new hires and exclude some employees hired after a date of your choice.

You can also remove them manually by unselecting them by clicking on "Added".

Once you've done your employees selection, you can click on each block to edit your budget:

Click on Inflation.

Do you want to increase your employees salaries based on the loss of income they might have due to inflation?

Depending on your employees' location, Figures will provide you with the current real-time local inflation rates. You can align with inflation or adjust it by updating the %.

Figures will automatically calculate the sub-budget needed for inflation adjustment.

At each step, you can preview how this change would impact your employees on the list available below.

Having trouble defining how you should align with inflation? We've gathered +200 companies insights and best practices into a free ebook:

Once you're good with your setup, click on Save.

Back to your budget homepage, click on Market adjustment to move forward.

Depending on how you have structured your compensation policy, you might have employees who are paid 'way below' what they should have been paid compared to the market. Those underpaid employees might be at risk.

In Figures, you can define your compensation policy with a market positioning (general or custom by job-family) by targeting a specific percentile.

Once you've decided on a target percentile in your settings, return to the market adjustment step to define the maximum acceptable distance to your target. Figures will automatically calculate the budget allocation you need to fit within your market adjustment needs based on the updated salary with inflation.

Ex: Let's say you want to pay everyone at the 70th percentile, you don't want people to be too far from your target percentile. Here you can allocate the budget to ensure people are at most X% away from the 70th percentile of the market.

Once you're good with your market adjustment budget, click on Save to move to the next step.

Please note it is best practice to adjust your employees based on your market positioning BEFORE running a merit-based increase to reduce bias and unfair adjustments.

Click on the Merit increase block to allocate the budget based on your merit philosophy.

How much budget would you like to allocate to reward people based on merit and performance?

At this stage, you can allocate a specific %, based on your business and results, on how much you can allocate to a general merit increase for every eligible employee.

Having trouble defining the General increase % you'd like to allocate for merit increase? Have a look to our Salary increase campaign survey report:

Performance-based merit increase is generally used when you link your Compensation review and Performance review cycles.

At this stage, you can allocate a different % of your budget based on your own performance ratings of your employees.

To do so, you can download a spreadsheet template where you'll be able to fill in your own individual performance-based ratings.

Open the spreadsheet in the format you prefer and fill the 'Performance Rating' column with your own performance rating values.

Standard rating scales are: Below expectations, Met expectations, Above expectations and Outstanding but you can fill in with your own ratings.

Then Save your document and upload it to Figures in XLSX file format.
If you worked with Google Sheet, you can export your work by clicking on "File" / "Download" / "Microsoft Excel".

Check if the uploaded values match the results and click on Save.

Then chose a specific % you'd like to allocate for each Performance rating. Figures will automatically calculate how much budget you should consider for your performance-based increase. You can also preview at the employee individual level, how much their salaries are impacted after inflation, market adjustment and merit increase and their final market positioning status after this salary increase campaign.

Once you're done, click on Save.

Congrats! You're almost done. 😇

To see the details of your budget, click on the Total Budget block:

You'll be able to have a view on the breakdown of the budget, include employer costs and see the details per country:

If you'd like to download it, you can click on Export to GSheet.

In your file, you'll find a Budget tab with a summary of your budget simulation as well as an Employee tab to see the individual simulation for each of your employees.

Easy peasy, right? We give you the ability to have an overall budget planned for your salary increase campaign. Well done! You now have your defined budget.