About Compensation Packs

Purpose

This article introduces the Compensation Packs functionality within the People Management module.
It explains how organizations can define, configure, and manage salary structures, benefits, and remuneration rules that align with internal policies and employee contracts.

Goal: Define salary, benefits, and rules for remuneration.

Overview

The Compensation Packs feature allows HR teams to structure the company’s compensation framework, ensuring fair, transparent, and consistent remuneration across all roles and levels.

Compensation Packs combine:

Benefit Policies – outlining allowances, perks, or additional incentives.
- Package Configurations – linking salary and benefits to career levels and contract types.
Salary Policies – defining pay rules by category, role, or level.

✅ This structure ensures every employee’s compensation aligns with company policies and career framework definitions.

Sub-Processes

Policy Definition

HR defines the rules governing compensation to ensure internal fairness and regulatory compliance.

Configuration	Purpose	Examples
Benefit Policies	Define additional compensation elements such as allowances, bonuses, or insurance coverage.	Meal allowance, performance bonus, transport subsidy.
Salary Policies	Define salary calculation rules, pay scales, and increment logic.	Monthly base pay by category (e.g., Junior, Senior).

💡 Ensure policy definitions align with legal frameworks and organizational compensation strategy.

Package Configuration

Once policies are defined, HR creates compensation packages that group salaries and benefits into assignable structures.

Configuration	Purpose	Examples
Benefit Packages	Combine salary and benefits for specific roles, categories, or contracts.	Senior IT Package – Base salary + Bonus + Healthcare benefits.

Example:

✅ Each package can be linked to the appropriate Career Category or Contract Type to automate remuneration during hiring or promotion.

Access Path

People Management → Compensation Packs

From this area, authorized users can:

Define and update benefit policies.
Create compensation packages based on organizational rules.
Link packages to career levels and contract templates.

Best Practices

💡 Recommendations for maintaining accurate and fair compensation structures:

Keep salary and benefit policies consistent across departments.
Review packages annually to ensure compliance with market standards.
Link packages directly to Career Management data for structural alignment.
Document all changes for audit and HR governance.

⚠️ Common Errors

Issue	Description
Unlinked Packages	Compensation packages not assigned to contracts or categories.
Outdated Salary Policies	Old pay structures used after updates.
Missing Benefit Details	Benefit policy not configured before package creation.
Inconsistent Career Mapping	Career categories not aligned with defined compensation levels.

Configure Benefit Policies and Packages
Define Salary Policies
Contract – Payroll (cross-link)
Contract – Benefits (cross-link)
About the Contracts (contextual overview)

✅ Well-defined Compensation Packs promote transparency, ensure internal equity, and simplify the remuneration process during recruitment, onboarding, and career progression.

About Compensation Packs