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Compensation Review Tracker

A compensation review tracker to run your annual pay cycle — track proposed increases, budget spend, compa-ratios, and approvals in one consistent place.

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What you get

  • A per-employee review tracker with current pay, proposal, and new pay
  • Built-in budget burndown so you never overspend the merit pool
  • Compa-ratio and percentage-increase columns for calibration
  • An approval-status workflow from manager to finance sign-off

Template preview

A preview of the structure. Download the PDF or CSV for the complete, ready-to-use version.

Cycle details

Review cyclee.g. FY26 annual review
Effective date
Total merit budgete.g. 4% of payroll
Approver

Review tracker

EmployeeBandCurrent salaryProposed increase %New salaryNew compa-ratioStatus
Sample, A.B3110,0005%115,50097%Approved
Sample, B.B280,0008%86,400102%Pending finance

Budget burndown

MetricAmount
Total merit budget
Spent so far
Remaining
Average increase %

Calibration checks

  • No high performer left below band midpoint without a plan
  • Increases distributed by performance, not tenure or favouritism
  • Pay-equity gaps reviewed before finalising
  • Total spend within the approved budget

Tip: run a calibration session across managers before approvals lock. It surfaces inconsistent rating-to-increase logic and the equity gaps a single-manager view always misses.

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How to use this template

  1. 1

    Load your population

    Add every eligible employee with their current salary, band, and last increase date.

  2. 2

    Enter proposals

    Capture each manager's proposed increase and let the tracker calculate the new salary and compa-ratio.

  3. 3

    Calibrate to budget

    Watch the running budget total and adjust proposals so the cycle lands within the approved pool.

  4. 4

    Route for approval

    Update the status column as each change moves through manager, HR, and finance approval.

Frequently asked questions

What is a typical merit increase budget?

Annual merit budgets commonly land between 3% and 5% of payroll, varying by market conditions and inflation. Top performers should receive meaningfully more than the average, funded by lower increases elsewhere.

How do I keep the cycle fair?

Calibrate across managers before approvals, tie increases to documented performance, and run a pay-equity check on the proposed numbers so a bias-free spreadsheet doesn't produce a biased outcome.

Should compa-ratio drive the increase?

It should inform it, not dictate it. A strong performer low in their band warrants a larger increase to move toward midpoint; a topped-out employee may need a promotion rather than another raise.