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Configure your pay philosophy

Set up how your organisation approaches employee compensation.

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Written by Onyema Onyejekwe
Updated this week

Your pay philosophy defines how your organisation approaches employee compensation. It reflects your company culture, values, and goals whilst helping to attract, retain, and motivate talent. The system uses your pay philosophy to generate recommended pay increases for each employee within your budget.

You can create your pay philosophy using two approaches:

  • Select a preset: Use a proven framework based on your data.

  • Start from scratch: Build a completely custom approach.

To configure your pay philosophy watch the video or follow the steps below:

  1. Open the dashboard menu in PeopleXD and select Pay Planner.

  2. Open the relevant cycle and click the Pay Philosophy tab.

  3. Click Set up pay philosophy.

  4. Select your chosen method and click either Use preset or Start from scratch.

  5. You can now customise your pay elements. See the table below for further details:

Element

Action

Merit

  1. Click Customize merit matrix.

  2. Adjust the percentage increases.

  3. Click Close.

Across the board

  1. Click Add an increase.

  2. Select whether to apply company-wide or to specific locations and click Apply.

  3. Enter your percentage Increase.

  4. Select This is a mandatory minimum increase, if required.

  5. Repeat as required.

Bonus

  1. Click Customise bonus matrix.

  2. Adjust the percentage increase for the different group values.

  3. Click Close.

  1. Add a summary of your approach, if required.

  2. Review the generated recommendations.

  3. Click Save.

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