Rosa Petrov· Sales Compensation Manager, Beacon Retail Group
Asked in Compensation ·
Last year 9% of our headcount received an off-cycle base pay increase, on top of a 3.5% annual review. I work for a Canadian retailer with roughly 12,000 employees, about 1,800 of them salaried.
Currently any vice-president can approve up to 10% with an email to HR. There is no budget, no reason codes, and nobody looks at the total until year end. Finance has noticed.
I have been asked to propose governance that does not make us slow when we really do need to move. What does approval look like in your organisation, and do you fund it from a separate pot?
1 helpful · 5 replies · 15 views · 3 following
Accepted answer· by Maya Chen
We hold back 0.5% of salaried payroll as an off-cycle fund, allocated to each business unit in January. Requests need one of four reason codes: retention risk with evidence, market adjustment, equity correction, or change in role scope. Reward approves up to 8%, above that it goes to the head of HR and the unit's finance lead together. Volume fell from around 7% of headcount to under 3% in the first year, mostly because the fund is visible and finite.
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