As a manager in the compensation review process, understanding your budget and using analytics are crucial for making informed decisions. This guide will help you navigate these aspects in Figures.
Understanding your allocated budget
Depending on your organization's configuration, you may see budget information at the top of your dashboard:
Total budget
Shows the overall budget allocated for salary increases:
Submitted: Amount already used in submitted reviews
Pending: Amount allocated in reviews not yet submitted
Remaining: Available budget
Overspend: Amount exceeding the allocated budget (if applicable)
Promotion budget
If applicable, a separate budget for promotion-related increases. This follows the same structure as the Total budget
Budget visibility is determined by your organization's settings. If you don't see this information, consult your HR team for guidance on budget constraints.
Managing overspend
If you notice your budget is in overspend:
Review your allocations carefully to identify where you might reduce increases.
Prioritize critical adjustments and consider reducing others.
Consult with HR or your supervisor about the possibility of increasing your budget allocation.
Be prepared to justify any overspend with clear, data-driven rationales.
Remember, staying within budget is important, but there may be cases where exceeding the budget is necessary for retention or equity reasons. Always communicate proactively about potential overspend.
Using analytics to inform decisions
Depending on your organization's configuration, you may have access to an Analytics tab. If your organization has enabled analytics for managers, this powerful tool can significantly enhance your decision-making process during compensation reviews.
If you don't see the Analytics tab, your organization may have chosen not to make this feature available to managers. In this case, consult with your HR team for guidance on how to access relevant data for decision-making.
Navigating the analytics feature
Filtering data
Use filters to focus on specific subsets of your team (e.g., by department, level, or location)
This allows you to analyze trends within particular groups
Creating breakdowns
Use the "Group by" feature to break down data by various factors (e.g., gender, performance rating, tenure)
This helps you compare metrics across different employee segments
Using analytics effectively
Identify pay equity issues
Compare average increases across different demographics (gender, age, etc.)
Look for unexplained discrepancies and address them in your reviews
Identify employees who may be under- or over-positioned in their salary ranges
Recognize and reward performance
Correlate performance ratings with proposed increases
Ensure top performers are receiving appropriate recognition
Manage promotion equity
Analyze promotion rates across different groups
Address any imbalances in career progression opportunities
Budget allocation strategy
Use data on average increases to distribute your budget effectively
Identify areas where larger or smaller increases might be needed
Spot trends and outliers
Look for patterns in salary adjustments across your team
Investigate any unusual increases or decreases to ensure they're justified
Prepare for employee discussions
Use analytics to support your compensation decisions with data
Be ready to explain how an employee's increase compares to team averages
Remember, while analytics provide valuable insights, they should inform, not dictate, your decisions. Always consider individual circumstances and performance when making compensation choices.