Pay bands and compa-ratio
Set up pay bands, place people in them by job title, and read compa-ratio and band position.
A pay band is the pay range for a role. Set them up under HCM → Compensation → Bands (HR only).
Creating a band
- Select New band.
- Enter a name, for example Engineer II, and choose yearly or hourly pay and the currency.
- Enter the minimum and maximum. The midpoint is filled in halfway between them; you can change it.
- Add the job titles that belong to the band.
A band you no longer use can be archived. People already in it keep it until you move them.
Placing people in bands
- By job title — select Auto-assign. Everyone whose job title matches one of a band's job titles (case does not matter) is placed in it. Tick Overwrite to also move people who already have a band. The result shows how many were placed and how many did not match.
- By hand — open a person under People and choose their band.
Compa-ratio
Compa-ratio is pay divided by the band midpoint.
- Below 0.90 — low in the band
- 0.90 to 1.10 — around the midpoint
- Above 1.10 — high in the band
Separately, position says whether pay is below the minimum, in the band or above the maximum. The Bands tab shows these counts for each band, plus the average compa-ratio. Select a number to see those people.
Compa-ratio also decides the suggested rise in a merit cycle.
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