Compensation bands are used to establish the pay range for a specific role. A compensation band is defined by a minimum and maximum amount and is often differentiated between roles, levels, and pay zones. Compensation bands are recommended but not required for running a compensation cycle.
Create a compensation band
- Navigate to Admin > Compensation > Compensation Bands.
- Select Create band > Create new band.
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Add the following required fields:
- Currency
- Job function
- Job level
- Job type
- Minimum base pay
- Target base pay
- Maximum base pay
- (optional) Select Show optional fields to view and input any additional values:
- Compensation band name
- Pay Zone
- Minimum variable pay
- Target variable pay
- Maximum variable pay
- Minimum equity
- Target equity
- Equity type
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Bonus target ($ or %)
- Note: Include % symbol if listing a percent of base pay ("10%"), or include no symbol for a monetary value ("1000").
- Select Save.
To create many bands at once, admins also have the option to bulk upload compensation bands via CSV.
Guidance on creating compensation bands
In order to correctly calculate compa-ratio, the band minimum, target, and maximum values should align to its assigned employees' Pay Type:
- Salary employees should be assigned to compensation bands listing annual rate minimum, target, and maximum.
- Hourly employees should be assigned to compensation bands listing hourly rate for minimum, target, and maximum.
Each range has a Target value that can be manually selected when creating or updating the band. This target does not have to be the numerical midpoint between Minimum and Maximum. Employees' compa-ratio will always be calculated based on the numerical midpoint of the band, not a selected Target value.
Before creating a compensation band, the matching Job Function, Job Type, Job Level, and Pay Zone must already exist in the dropdown. To add new values to these fields, navigate to Admin > People > Fields, then select the field that needs additional values added.
Update a compensation band
- Navigate to Admin > Compensation > Compensation Bands.
- Find the compensation band that needs to be updated. You can filter based on Job Function, Job Type, or Pay Zone.
- Click the ellipsis next to the Job Level and Name of the band, and Edit Band, or click the name of the compensation band to open a side-panel editable view of band data.
- Adjust any values that need to be updated.
- Click Save.
Note: Any changes to the Minimum, Target, and Maximum values in existing compensation bands will not reflect in already-active compensation cycles. Changes to existing bands will reflect immediately for any shared bands or in the Total Compensation view.
Delete a compensation band
When deleting a compensation band, any employees assigned to that band will have their assignment removed.
- Navigate to Admin > Compensation > Compensation Bands.
- Find the compensation band that needs to be updated. You can filter based on Job Function, Job Type, or Pay Zone.
- Click the ellipsis next to the Job Level and Name of the band, and Delete band.
- A confirmation popup will appear. Click Delete to confirm.
Next, learn how to assign employees to compensation bands.