Salary Reviews

Learn more about Salary Reviews and how it works in Simployer One

A salary review is a process where an employer evaluates the compensation of their employees, to determine if it is fair and in line with industry standards, the company budget, and the employee's job performance. It is one of the most important activities in the annual HR cycle.

This article will cover how you as an Owner can set up a Salary Review in Simployer One.  You can find our guide on how Salary Reviews work for a Planner and Final approver here.

⚠ If you don't have access to the Salary Review feature but are interested in learning more, feel free to reach out to your Customer Success Manager.

Overview

If you have the feature activated, you can find it via the menu: Engagement > Salary reviews

What Integration options exists?

Actions can be triggered instantly or scheduled for a later time:

Scheduling enables you to plan for confirmed changes in the future, however, as things can change in the meantime you cancel scheduled actions before they take effect. You can view and cancel them here.

• Owners can create a Salary review and see all upcoming and active ones.
• Owners can also act as a Final approver - allowing them to help or act on behalf of the originally appointed Final approver. Owners can on the approvers behalf
  • approve/reject salary changes submitted by planners
  • approve the salary review to update salaries on the decided effective date
• Planners and Final approvers can only see and participate in the Salary reviews they are part of.

How to set up a Salary Review

Click + New salary review to set up a new process which in turn will consist of five parts. You can choose to complete the full setup later on by simply clicking on “Save & Exit” on the upper right corner to save it as a draft.

1) Setup

Fill in the name and add a short description. Make sure you also choose who the Final approver is and keep in mind there can only be one final approver per salary review.

You can read more about the two different roles, Planner and Final approver by clicking on “Understand roles”.

2) People

Choose the scope of employees that should be part of this salary review, known as the "Participants".

• Exclude employees starting from a certain hire date, e.g. new hires/employees with a probationary employment.
• Exclude employees that should not be part of this year's salary review (here you can read more about how Salary Year is defined and used).
• Among the remaining employees you can now narrow down the scope of employees that are eligible for the salary review even further. You can either proceed with the remaining employees by selecting "Everyone at the company" or limit the scope by using "select people".

To double check that everything is correct you can click on the avatars under "added employees". You get the list of all participants that qualify for the salary review based on the previously define scope settings.

Now that you have defined the participants, it's time to assign the Planner(s) who are expected to perform the salary review for the selected employees.

The Manager will be assigned as the Planner per default however you can change this if needed. Click on the arrow to expand the list and then Edit to make bulk changes or the 3 dots on the right to make the change for the specific employee. All employees who are part of the scope to be reviewed must have an assigned Planner.

3) Financials

Select your currency of choice and set the budget either

• Budget based on % increase per employee
  • All planners will automatically get a budget of e.g. 3% increase of current salaries for each employee
  • Based on the set percentage would will see the total budget allocated

• Budget in amount
  • Set an total budget for the salary review
  • Choose how much of the total budget will be allocated to each Planner. The assigned amount will act as a guide for the Planner when they are making their suggestions meaning they can still exceed this amount if needed when submitting their proposals. It is however always up to the Final approver to approve each suggestion in the last step of the actual review.

4) Notifications

Customize your email and message sent to all Planners. This email will be sent out on the start date of the Salary review.

• Reminders will automatically be sent to both Planners and the Final approver during the Salary Review to make sure they complete their tasks in time.

5) Confirm

Last step of the setup with a summary of your chosen settings. This is also where you choose:

• Start date: The date Planners will receive the notification email and can start submitting their recommendations for their employees’ salaries.
• Final approver date: The last day for the Final approver to complete their part.
• Effective date: The date all affected employees’ salaries will be effective from. This will be added as a new row on the compensation section of their profile on the same day the Final approver has pressed on the “Update salaries” as part of their last step. The previous compensation will still be logged for historical purposes.

When you are done with the setup then you can either choose to “Save and launch” or to keep it as a draft.

You can read more about how salary reviews work for the involved parties here:

Planner(s) & Final Approver

Edit a published Salary Review

Sections available for editing are: Name, Description and dates.

• Start date is only possible to edit as long as the review is not active, i.e. the start date has already passed