02 — Capability · BC-350.30
Compensation Cycle
Run the periodic process in which merit increases, adjustments and bonuses are proposed, budgeted, approved and communicated, once a year or whenever the organization decides.
- Merit Cycle
- Annual Compensation Review
In scope
- Compensation budget and guidelines
- Manager proposals and approvals
- Pay change communication and statements
Out of scope
- Performance ratings as input (see BC-340)
- Headcount budget (see BC-220)
Realized by · 1
Used in · 0
- Not yet placed on a value stream.
Build it · 0
- Nothing in the library points here yet.
Decomposes into · 3
- BC-350.30.10Cycle Budget & GuidelinesSet the pool and the rules for distributing it before managers start, so the cycle ends on budget without a second round.
- BC-350.30.20Pay Change Proposals & ApprovalCollect, review and approve proposed increases and bonuses against guidelines, with exceptions justified in writing.
- BC-350.30.30Total Rewards CommunicationTell each person what changed and what their full package is worth, in terms they can understand.