Comp How-To
How to run a merit increase cycle
Start with a budget
HR opens the cycle with a name and a budget; it starts in planning. The budget frames every proposal, so managers plan against a known envelope rather than in the dark.
Before you open the cycle
- Set the total merit budget
- Confirm bands and benchmarks are current for context
- Confirm performance ratings are in for pay-for-performance
- Decide the manager proposal window
The approval flow
| Stage | Role | Action |
|---|---|---|
| Propose | Manager | New salary + bonus with justification |
| Adjust | HR | Set approved salary/bonus; mark adjusted |
| Submit | HR | Send the cycle for approval |
| Finalize | Executive | Close the cycle; export to payroll |
Keep comp data protected
Finalize to payroll
Finalizing closes the cycle, exports the approved changes to payroll, and writes an audit event with the export result, so an approved raise becomes an actual paycheck and the decision is on the record.
Questions people ask
Who does what in a merit cycle?
HR starts it with a budget, managers propose salary/bonus with justification, HR adjusts to approved figures, HR submits, and executives finalize, which exports to payroll.
Is the cycle tied to a budget?
Yes. Each cycle carries a budget so proposals and adjustments are made against a known envelope.
Who can see everyone’s comp?
Only owner, admin, and HR can read the full cycle; proposals expose sensitive salary data, so managers and plain employees can’t enumerate the whole org.
What happens when a raise is approved?
Finalizing closes the cycle, exports approved changes to payroll, and records an audit event: turning the raise into a paycheck.
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Merit cycles that stay governed
Run from budget to payroll with an audit trail at each step.