Fair compensation is essential for attracting, retaining, and motivating top talent. By conducting regular salary reviews, organizations can maintain internal equity and external competitiveness. This template helps to have a practical approach to evaluating employee compensation and making data-driven adjustments.
While large corporations often rely on sophisticated HR software for compensation management, smaller businesses can achieve similar results with a well-structured spreadsheet. This editable template allows for flexibility and customization, making it a practical choice for many organizations managing a smaller pool of employees.
The basic principles for using this tool:
- You need to make sure to retain employees and avoid employee turnover by reviewing his or her salary on a regular basis. Typically once per year.
- Employees need feedback regarding job performance expectations and also their own performance delivered against the expectations. The compensation they receive should reflect not only the market value of the work they do for you but also their own level of delivery against expectations for that role. Performance that exceeded your expectations deserves to be rewarded. You could do it as a discretionary bonus or you could review the person’s annual salary and consider an increase.
- Some employees bring increase requests to their bosses on a regular basis while others may just be waiting for their bosses to realize how much effort they put in and how many good results they are achieving. Without a solid salary review process which is run uniformly on an annual basis (at least), you could run the risk of not treating all of your employees in the same fair manner when it comes to salary reviews. It could happen that only those employees requesting regular increases are receiving them while those who do not ask, do not.
The Rethink Shelf 