Uploading performance ratings and promotions during the planning stage of a Compensation Review helps ensure you have enough budget for your upcoming comp review and business needs.
This video will review how you can upload performance ratings and promotions ahead of starting a Comp Review and how they impact the comp review budget.
Performance Ratings
0:20 When you start the plan for a Comp Review in Kamsa, you have the option to establish merit increase guidelines by country based on performance ratings and compa-ratios to calculate the Comp Review budget. To do this, you’ll need to upload a performance rating file.
You also have the option to not use performance ratings, and establish your salary increase guidelines just based on employees’ market pay position (for example, based on their compa-ratios).
The labels for the different performance ratings you use within your organization can be customized and entered in your Company Profile.
If you want to factor in performance ratings as part of your merit increase guidelines, similar to other Kamsa templates, you can download the performance rating file by clicking on the Upload Performance Ratings button, and then download the template.
Fill in the employee ID, name, performance rating, and rating effective date for your employees, then upload this file back into Kamsa.
After uploading the performance rating file, Kamsa will change the color of the cloud in the performance rating button to green, and when you hover your cursor over the button, the tooltip will show when the file was uploaded.
Kamsa will factor in each employee’s country, market pay position, and performance rating to calculate the merit increase budget.
For example, for employees located in the United States who have a compa-ratio above the competitive range (over 115%) and have the highest performance rating, Kamsa will calculate a merit increase of 2.5%
When the Compensation Review begins, Kamsa will display the employee’s performance rating as a data point for the compensation reviewer to reference when making their decisions.
Once you upload the performance ratings, Kamsa will recalculate the budget based on the merit increase guidelines by country and performance rating.
If employees are eligible for the review and not included in the performance rating upload, Kamsa will calculate them using the Unknown Rating merit increase guidelines.
Suppose the employee’s compa-ratio is competitive (between 85% and 115%), and they have an unknown performance rating. In that case, Kamsa will calculate and suggest a 3% merit increase guideline based on their base salary, and you can click on edit to change the %.
Suppose you’re doing salary and equity reviews simultaneously. In that case, Kamsa will use the same performance rating upload to calculate the merit increase budget for the salary review and the number of shares needed for refresh grants in the equity review.
Promotions
3:10 Now let’s upload a promotions file.
Before uploading a promotion file to the Comp Review, Kamsa defaults to a % of payroll to calculate the promotion budget, which is editable.
If no promotion file is uploaded, each compensation reviewer will receive an allocated budget as a % of payroll for potential promotions. Each country’s merit increase guideline matrix has a promotion increase budget, and Kamsa uses the % of payroll to calculate the budget.
When the promotion file is uploaded, Kamsa will instead calculate the promotion increase as a % of each employee’s base salary for the promotion budget, making the budget more accurate. Each compensation reviewer’s allocated budget will factor in these data points.
Once the promotion file is uploaded, Kamsa will use the sum of the percentage of each employee’s salary to calculate the promotion budget.
For example, if employees are located in Argentina and are included in the promotions file, Kamsa will use the % of their salary to calculate the promotion increase amount.
When the compensation review begins, Kamsa will automatically toggle the promotion to Yes and will pre-populate the next level job match for the employees getting promoted.
For example, suppose an employee’s current job match is IC3 Software Engineer, and they are included in the Promotion upload. In that case, Kamsa will toggle the promotion to yes and automatically select IC4 Senior Software Engineer as the promotion match.
The Admin or compensation reviewer should fill in the new Company Job Title for each promotion.
In the Base Salary section of the Comp Review, Kamsa lists the Market Midpoint for each employee. If an employee’s promotion section is toggled to Yes, and a new Kamsa Job Match is chosen, Kamsa will display the market midpoint for the job the employee is getting promoted to. It will also recommend the new base salary as a % of each employee’s salary.
If compensation reviewers want to promote employees who are not included in the promotion file or eligible for the comp review, they will still be able to toggle the Promotion section to “yes.” However, the budget will not incorporate this unplanned promotion; said another way, the Comp Reviewer does not get an additional budget amount added for promoting an employee who was not included in the promotion file or initially eligible for the review.
Once you’ve uploaded the performance ratings and promotions, Kamsa’s budget will recalculate according to each employee’s country, compa-ratio, and increase guidelines.