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Defining and distributing your Compensation Review budget

Learn how to set up and allocate your compensation review budget effectively.

Updated over 5 months ago

The Budget Definition feature in Figures allows campaign administrators to set a global budget for the compensation review and determine how it will be distributed among reviewers. This tool ensures budget adherence and provides flexibility in allocation methods.

Setting up your budget

Budgeting method

Choose between two methods to initiate your budget:

  • Quick budget estimation:

    • Set a percentage of total payroll or a predetermined sum for all employees.

    • The system calculates the total budget based on your input.

  • Upload your budget spreadsheet:

    • Import a pre-defined increase budget by uploading a spreadsheet.

    • Useful for organizations with complex budgeting processes.

Budget calculation

Enter either:

  • An average increase percentage

  • A total budget amount

The system will automatically calculate the other value based on the employees' salary mass.

Distributing the budget

Choose from three distribution methods:

  • Proportional distribution:

    • Each reviewer's budget is calculated as a percentage of their team's salary mass.

    • This percentage matches the total salary mass percentage you've entered.

  • Targeted distribution:

    • Allocate budgets based on organizational criteria (e.g., Business Unit, country, team).

    • Reviewers receive a budget that reflects the allocated percentage for their division.

  • Smart Allocation (Recommended option):

    • Figures intelligently suggests increases for each employee based on market or salary band positioning and performance.

    • In the next step, you can balance the focus between rewarding performance and market adjustments.

    • Reviewer budgets are calculated as the sum of their reports' recommended increases, with an additional margin for adjustments.

Use the Smart Allocation feature to balance internal equity and market competitiveness.

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