Describing the Guidelines Used for Determining Compensation

Guidelines provide planners with rules on how much of an increase to give to employees based on certain criteria. For example, such criteria can be based on performance ratings, job level, budget group, where they are in the range, etc.

Guidelines are available for the following compensation components:

• Merit
• Promo
• Lump sum
• Stock
• Extra
• Extra2

Your implementation consultant will discuss the complete component list with you.

Guidelines can be configured to have a hard stop (so that planners will not go beyond the maximum allowed recommendation) or can be configured to allow planners to exceed the maximum (but they will be forced to add a comment and justify the additional increase).

• Planners use guidelines to determine salary increases for employees based on specific criteria such as performance ratings, job level, budget group, and their position within the pay range.
• Guidelines can be tailored to either enforce strict adherence to maximum recommendations (hard stop) or allow excess increases with mandatory justification through comments.
• By providing structured rules and flexibility, guidelines help planners make informed and justified compensation decisions aligned with organizational strategies.