Playbook: Compensation & Incentives

  • Logic Type: Value Distribution Logic
  • Goal: Fair, competitive, strategy-aligned rewards
  • Start: Strategic compensation architecture
  • End: Effective, market-competitive pay system

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Core Subprocesses: 1) Comp Strategy & Architecture · 2) Structure & Market Benchmarking · 3) Incentives & Cycles · 4) Equity & Fairness · 5) Review & Adapt

Subprocess 3 · Incentives & Cycles

Purpose

Link pay to value creation with transparent rules and predictable cycles.

Guardrails

  • Pay-for-value, not politics.
  • Fairness checks (gender, ethnicity, role type).
Play A Human-led Calibration Boards (Human-led · Reflective + Perceptive)

Flow

  1. Pre-reads; performance evidence.
  2. Board decisions & justifications.
  3. Employee communication plan.

KPIs

  • Appeal rate < 5%
  • Trust score +
Play B Augmented Comp Assistant (Human-augmented · Predictive + Generative)

Flow

  1. Budget & market data ingest.
  2. AI proposals; manager edits.
  3. Equity guardrails; bias scans.

KPIs

  • Cycle time −40%
  • Outlier rate −50%
Play C Policy-driven Auto Adjustments (Algorithmic-autonomous · Agentic)

Flow

  1. Rule engine: floors/caps, equity rules.
  2. Auto calc; exceptions to queue.
  3. Audit trail & approvals.

KPIs

  • Error rate < 0.5%
  • Admin time −60%