This article provides an overview of the Compensation Management app, which is an all-in-one solution for managing salary reviews across your organization. Depending on the permissions you grant, anyone in your company can use the app to efficiently set up, launch, and manage salary reviews at scale. With this app, you can easily update your employees salaries and streamline the entire review process. 

If you are interested in getting access to the Compensation Management app, you can request further information and get an individual consultation from our Customer Growth & Success Team (page only available in English and German).

The benefits of the compensation management app include:

• Easy set up of salary review cycles, including eligible employees and budgets.
• A simplified process where supervisors propose and submit salary changes for their reports.
• Approval of salary change proposals by their supervisor(s) according to the OrgChart hierarchy.
• Overview for administrators of what salary changes have been approved and how they compare to the available budget.
• Automatic synchronization and update of all approved salary changes to the relevant employee profiles in Personio.
• No need for manual import or export of salary data, thus reducing data privacy risks.

• Granular permissions setting to the Compensation Management app.

Tip:
We recommend completing the Manage compensation review cycles in Personio Compensation learning path from our Personio Voyager Academy to complement the information in this article.

Features

The Compensation Management journey

Depending on your role, your use of compensation management on a daily basis will be different. The following table gives an overview of the different roles' involvement in the compensation management journey:

 

Tip:
To benefit from data on salary bands during your cycle, you need to set up your company's job architecture, including salary bands, in Personio. This can be done by the Personio Administrator, or by employees with edit rights to job architecture.

Set up granular permissions

By default, the main Personio Administrator within your company will be able to grant access to the compensation area to other administrators and employees who will be responsible for compensation management within your organization.

Employees with editing rights to the Compensation area will be able to create, publish, and manage Compensation Review Cycles, as well as see eligible employees' salary information. They will also be able to close and complete a compensation review cycle and update employees' salaries accordingly.

Supervisors, whose employees are eligible for a salary increase in a given cycle, will automatically be provided access to their respective worksheet, which will include their reports' salary data.

 

Set up your job architecture

With the job architecture feature, you can standardize the jobs in your organization. You can group jobs by job families and define elements such as a job's name and the corresponding salary bands. 

After the job architecture is set up, you need to assign a job name to each employee, under Employee profile > Public profile.

Salary band visualization and related data like compa-ratios are then available when reviewing compensation cycles, in each Worksheet.

Set up a Compensation Review Cycle 

As an administrator, you can set up and launch a Compensation Review Cycle via the Salary Cycle Builder. Simply select all eligible employees, choose a currency, and define the budget for the cycle. This allows all the supervisors within your organization to easily review and suggest salary changes to their reports' salaries, without the need for spreadsheets and data imports or exports.

Enable supervisors to propose salary changes across at scale

Supervisors within your organization can easily propose salary increases by a currency amount ($) or a percentage value (%) for both their direct and indirect reports via their Worksheets, and see their budget updates in real-time. Refer to the article Run a Compensation Cycle as a supervisor for further information.

 

Easily approve and sign-off other supervisor proposals

Supervisors with both direct and indirect reports can also review and approve other supervisors' salary change proposals (hierarchical approval flow based on the Personio Org Chart), and compare them against the organization's budget. This removes endless back-and-forth with approvers, as well as manual aggregation of data from many spreadsheets. 

 

Update all employee salaries with a click of a button

As an Administrator, you can end the Compensation Review Cycle with confidence, knowing everything has been reviewed and approved. Once ready, update the employees' salaries to reflect the new salaries in the employee profiles' Salary tab immediately.

 

Create compensation letters

As an Personio-Administrator, you can create reward letters via the Compensation Review Cycle once a cycle is completed. Create a template using the compensation placeholders and upload it to the document settings. Take a look at the attached document to see an example of a reward letter. Once uploaded to Personio, you can use the bulk function and select all employees for whom you want to create reward letters. If you are using our e-signature package, you can request e-signatures and notify employees about the newly created document. Employees can then view the reward letters in their employee profile and export them if needed. This helps you to bulk create reward letters effortlessly without the need of manual uploads and e-signature requests. Learn how to end a compensation review cycle as an admin.

Notifications

The table below shows you how notifications work. It outlines all the trigger notifications, shows who will receive notifications, different types of notifications, and when will the notification be triggered.

Related articles

Refer to the articles below to learn more about the usage of the Compensation Management app:

• Manage a compensation review cycle as an admin
• Compensation management for cycle manager and cycle viewer
• Run a compensation cycle as a supervisor