Salary Review Checklist

Extract a complete and accurate report of current base salaries, variable pay, and total compensation from your HRIS.

Gather the latest performance ratings and evaluations for each employee to inform merit-based salary adjustment decisions.

Source current compensation survey data to compare each role's pay against the relevant external labor market.

Examine how long each employee has been in their role and their salary progression over time to identify stagnation.

Flag employees whose current salary is near the minimum or maximum of their assigned pay range for special attention.

Determine each employee's salary as a percentage of the pay range midpoint to assess positioning within the range.

Compare salaries of employees in similar roles to detect disparities based on tenure, performance, or demographic factors.

Cross-reference compensation data with performance and engagement scores to identify top talent at risk of leaving.

Propose specific increase amounts or percentages for each employee based on performance, market data, and equity analysis.

Rank recommended salary changes by urgency and impact to ensure the most critical adjustments are funded first.

Calculate the aggregate financial impact of all proposed salary increases to verify alignment with the approved budget.

Organize sessions where managers discuss and align on salary recommendations to ensure consistency across teams and departments.

Distribute clear documentation on the review criteria, budget parameters, and timeline so managers can prepare effectively.

Evaluate proposed increases from each manager to identify outliers and ensure equitable treatment across the organization.

Facilitate discussions between managers and HR to reach consensus on salary changes where initial recommendations conflict.

Compile the agreed-upon salary changes into a final list that has received all necessary reviews and approvals.

Present the finalized salary adjustment proposals to executive leadership for their review, questions, and formal approval.

Confirm with the finance department that all approved salary changes fall within the allocated compensation budget.

Record the specific business rationale behind every salary change to create an auditable trail for compliance purposes.

Prepare formal letters for each affected employee detailing their new salary, effective date, and any relevant context.

Store all salary review documentation, analyses, and approval records in a secure location for future audit reference.

Coach managers on how to communicate salary decisions clearly, address questions, and handle potentially difficult reactions.

Coordinate meeting times for each manager to privately discuss salary changes with their individual team members.

Create scripted guidance for managers covering scenarios including significant increases, modest changes, and no-change situations.

Inform employees when their new salary will take effect and when they can expect to see the change reflected.

Designate a point of contact or feedback mechanism where employees can raise concerns or seek clarification privately.

Track and address any outstanding questions or escalations from employees within a defined timeframe after the review.

Run a payroll audit to confirm that all salary adjustments were entered correctly and are reflected in the next pay cycle.

Survey employees to assess their perception of the salary review's fairness, transparency, and communication quality.

Monitor voluntary resignation rates in the months following the review to evaluate the impact of compensation decisions.

Document lessons learned and areas for improvement to streamline and enhance the salary review process going forward.