What is a recommendation rule?
A recommendation rule is a set of criteria you can define as part of a compensation cycle. Leapsome can then use your employee’s existing data, such as review score or goal completion, to provide a recommended salary/bonus/share change or promotion decision based on the input factors and conditions you define.
Recommendation rules are optional, and the results from these rules are only a guideline to provide more context and reference for managers and approvers to make compensation and promotion decisions.
When no recommendation rules are set up in the cycle, managers (proposers) and the approver can still see employees' profiles with their current tenure, level, salary, bonus, and reviews/goals as their reference to make decisions.
You can set up multiple recommendation rules for a specific cycle. We will calculate and provide recommendations for each rule you set up.
For instance, for an annual company-wide compensation review cycle which includes both salary review and share review, you can set up multiple rules as such:
- Salary rule 1 - Berlin
- Shares rule 1 - Berlin
- Salary rule 2 - New York
- Shares rule 2 - New York
As the approver, when you open a proposal for an employee in the Berlin office, you would see the salary rule 1 for the Berlin office and bonus rule 1 for the Berlin office being applied and see their respective recommendation for the salary and bonus changes.
If you set up complex rules that might conclude with multiple recommendation amounts, the final recommendation would show you the highest amount alongside all the applied recommendations. Therefore, as the manager (proposer) or approver, you can use that information as your reference. Ultimately, it’s up to you to make the final decision based on all other contexts you have for this employee.
For more information on running transparent, fair compensation and promotion processes, take a look at Leapsome’s blog for further guides and playbooks.