Compensation Review Checklist Template (HR)

Ensure fair and equitable pay practices with our Compensation Review Checklist. Simplify your annual or merit-based reviews, maintain compliance, and boost employee satisfaction. Download now for a structured approach to rewarding top talent!

This Template was installed 2 times.

Preparation & Data Gathering

1 of 10

Collect necessary salary data, performance reviews, market research, and budget information.

Compensation Review Start Date

Number of Employees Included in Review

Compensation Philosophy Alignment?

Previous Compensation Review Documents

Notes on Budget Constraints or External Factors

Date of Latest Salary Survey Data

Market Analysis

2 of 10

Review industry benchmarks, salary surveys, and competitor compensation data.

Salary Survey Provider (e.g., Mercer, Radford)

Summary of Salary Survey Findings

Average Market Salary for Role

Median Market Salary for Role

Geographic Location Considered for Market Data

Upload Market Salary Report (Optional)

Performance Review Alignment

3 of 10

Analyze employee performance reviews and identify high performers and areas for improvement.

Overall Performance Rating

Summary of Key Accomplishments

Areas for Improvement Identified

Goal Achievement - Quantitative

Manager’s Comments on Performance

Alignment with Company Values

Salary Range Assessment

4 of 10

Evaluate current salary ranges and determine if adjustments are needed based on market data and performance.

Current Salary Range Minimum

Current Salary Range Maximum

Recommended Salary Range Minimum

Recommended Salary Range Maximum

Justification for Range Adjustment

Detailed Explanation of Range Adjustment

Individual Compensation Review

5 of 10

Review individual employee salaries against their performance, market value, and internal equity.

Current Base Salary

Target Base Salary (Based on Review)

Performance Rating (From Review)

Justification for Salary Recommendation

Role Level (compared to band)

Salary Range Low End

Salary Range High End

Additional Comments/Notes

Merit & Bonus Allocation

6 of 10

Determine merit increases and bonus allocations based on performance and budget guidelines.

Overall Merit Pool Percentage

Bonus Pool Percentage (if applicable)

Performance Rating Categories

Merit Increase % - Exceeds Expectations

Merit Increase % - Meets Expectations

Merit Increase % - Needs Improvement

Bonus Multiplier - Exceeds Expectations

Bonus Multiplier - Meets Expectations

Notes on Individual Bonus Decisions

Equity & Consistency Check

7 of 10

Ensure internal equity and consistency across similar roles and experience levels.

Salary Range Comparison (Similar Roles)

Experience Level Consistency?

Deviation from Midpoint (%)

Notes on Role Grouping and Equity

Addressing Pay Inversion?

Rationale for Any Discrepancies

Documentation & Approval

8 of 10

Document all decisions and obtain necessary approvals from HR and management.

Review Summary & Rationale

Total Budget Allocation for Compensation

Date of Initial Review

Review Status

Reviewer Signature

Supporting Documentation (Salary Surveys, Market Data)

Communication Plan

9 of 10

Develop a communication plan to explain compensation changes to employees.

Draft Communication Message (Manager)

Communication Method (Employees)

Communication Send Date

Subject Line (Email)

Key Talking Points

Manager Talking Points Template

Post-Review Analysis

10 of 10

Review the overall compensation review process and identify areas for improvement.

Overall Review Efficiency Score (1-10)

What worked well in the compensation review process?

What challenges or roadblocks were encountered?

Which areas require further training for reviewers?

Date of Next Process Review Meeting

Summary of Key Process Improvement Recommendations

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