Annual salary review is one of the most sensitive HR exercises. With Preliminary salaries, you simulate the effect of a global envelope (e.g. +3.5% payroll budget) on each employee and arbitrate before sign-off.
Step-by-step #
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Open Salary review mode #
Payroll → Annual review. Pick the period and scope.
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Set the envelope #
As % of payroll, fixed amount, or by band. You can allocate differently per department or perf grade.
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Capture per-employee proposals #
Manager proposes a % raise, a one-off bonus, or a role change. Guardrail: total cannot exceed the envelope.
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Calibrate as HR team #
Overview: fairness (per grade), performance link (rating consistency), gender pay gap.
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Communicate to managers and employees #
Once approved, automatic amendment generation and notifications. Payslips reflect the new base from month M+1.
Calibration indicators #
| Indicator | Target |
|---|---|
| % of envelope used | 95-100% |
| Gender gap on same grade | < 3% |
| Top performers: avg rate | 1.5x to 2x the average |
| Underperformers: avg rate | 0 or 0.5x the average |
| Inflation coverage | At least official inflation |
FAQ #
How do I avoid bias?
Optional anonymised display + market benchmark comparison. Reduces proximity bias.
What about promotions?
Tracked separately from raises. Captured in the Performance module and reflected automatically.
Does the manager see the global envelope?
No, only their allocation. HR sees the whole.
What happens after sign-off?
Amendments generated and sent for e-signature. Once signed, automatic profile and payroll update.
See Payroll outsourcing #
Discover when and how to outsource payroll with Illizeo.
