The salary planning workbook helps you plan your department’s salary adjustments for the year. Typically, a company will give you a raise pool as a percentage of your department’s current salary. You then have the flexiblity to allocate raises based on each person’s performance and contribution to the company.
There are two templates available, depending on how you like to perform the salary planning. If you prefer to think of how much percentage raise you want to give each person, use the spreadsheet on the tab “Salary Planning Template – %”. If you prefer to think in terms of how much money you would like to give each employee, then use the spreadsheet on the tab “Salary Planning Template – $”.
Read on for variables used and column values tracked in the salary planning template:
Department Name – Name of the department you are planning for.
Planning year – The year you are doing the salary planning.
Avg Raise Percentage – This is the average raise percentage that your boss or finance department provides you for salary planning. This value may or may not include percentages for promotions. You will need to discuss with your boss how promotions should be handled.
Raise Pool – This is the total dollar amount that you have for employee raises. This amount may or may not include money for promotions as well. You will need to discuss whether promotion raises are included in the raise pool or not.
Employee Name – Name of the person you are doing the salary planning for.
Position – Name and level of the role the person currently holds within the company. For Example, Network Engineer II.
Current Salary – Current compensation for the employee
Raise % – This is the percentage increase you would like to give the person.
Raise Amount – This is the dollar amount of the raise that you would like to give this person. This column is a calculated amount based on the raise % value entered.
New Position – Enter the new title for the person if you are promoting them. Otherwise, leave blank.
Promotion % – Enter the percentage increase in salary for the promotion.
Promotion Amount – This is the dollar amount of the promotion raise that you would like to give this person. This column is a calculated amount based on the promotion % value entered.
Effective Date – This is the month that the raise/promotion will be given.
New Salary – This is the new salary that the person will have. This is a calculated field based on the current salary plus raise amount plus promotion amount.
Budget Impact – This is the dollar amount that will you will see on your budget in the planning year. For example, you may give someone a $12,000 raise in June. The budget impact for the current year will be $6,000, because they will have the new salary for only 6 months of the budget year.
Annual Impact – This is the dollar amount increase you will see for a full year with the adjusted salary. This number is effect the raise amount plus the promotion amount.