You can define the salary band in which employees can qualify based on their level in the company. You can use these bands in the compensation module to ensure proposals fall within the ranges defined in your company’s framework.
Compensation Cadence and Visibility
First, the super admin must define how your company measures the salary(and/or bonus). Currently, you can define the cadence in Leapsome as annually, quarterly, or monthly. The cadence defined in the admin settings should correlate with the salary and bonus information input into the user profiles. Therefore, if the user profiles have compensation values defined on an annual timeframe, then the cadence in the admin settings should also be set to 'annual'. More information on importing salary/bonus information can be found here.
To do so, navigate to 'Settings' > 'Module & feature settings' > 'Compensation'.
Within these settings, you can define the visibility of the salary bands for the roles of the proposer and the approver. They can have the following visibility options when participating in a cycle:
- None - they would not have visibility to any of the salary band information
- The current level of the employee - only the current salary band of the employee would be visible to them to see if the proposal qualifies for their designated level
- All levels - salary bands for all levels would be visible to them in the event that the proposed salary qualifies them for another level.
Depending on the visibility settings defined in the admin settings, only specific salary band information will be presented in the compensation cycle. If visibility is set to all levels, then the proposer/approver would be able to see the employee's specific salary band, or they would be able to expand the salary band information to view all salary bands for each level. The following information explains what will show in the cycle if salary or level information is not defined:
- If any compensation band is added for a level, but an employee does not have a level, the cycle will show the employee’s level has not been defined.
- If some compensation band is added for levels, but an employee’s level’s compensation band is not defined, the cycle will show the level’s compensation band has not been defined.
- If no compensation band is added at all, the cycle will show a reminder: The salary band is not defined.
Define the Salary band for each level
Once the salary cadence is defined, the super admin can then define the salary band for each level. The salary cadence defined in the admin settings (annually, quarterly, monthly) will be reflected in the levels when defining the compensation bands.
To define the compensation band per level, go to 'Compensation' > 'Salary bands' > 'Actions' > 'New salary band'. If a team restriction is applied for the level, then it would be applied to the salary/bonus band as well.
Alternatively, salary bands can be defined and updated via Excel Import. To do so, go to 'Compensation' > 'Salary bands' > 'Actions' > 'Export salary bands'. From here, as long as your organization's levels have been defined in your Competency Framework, you can create and/or update the salary bands directly in the downloaded Excel file. You can also do so by scrolling to the bottom of the Salary Bands page within the Compensation Module and following the steps listed below. Please note that for the upload to work, the name of the salary band field needs to be unique for each salary band. To see how to create levels in your Competency Framework, please click here.
Finally, it is important to note that compensation values can overlap between different levels. For example, level 3 can have the band $50k- $60k, and level 4 can have a band $58k- $68k.
Only super-admins can define the level name and team restrictions. However, the compensation admin would be able to update the min/max salary band values for the levels.
How to use the salary band in a compensation cycle
The compensation band is used as a reference for proposers and approvers to know where their proposed compensation increase lies in relation to the framework of each level. It is visible to proposers and approvers within a proposal. If the proposed amount is higher than the level defined for the employee in the cycle, then either the level of the employee must be re-evaluated, or the proposal must be re-considered.