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Compensation Planning Year-End Strategic Checklist
Provided by Catapult HR: eight phases to run a defensible, well-communicated compensation cycle from foundational review through post-implementation.
Download the Checklist (PDF) →01
Foundational Review & Data Integrity
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Review compensation philosophy
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Audit job architecture
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Review internal equity
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Review employee demographics
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Validate employee data
02
External Market Competitiveness
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Conduct market benchmarking
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Identify market adjustment needs
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Evaluate pay structure ranges
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Assess benefits and total rewards competitiveness
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Evaluate geographic pay practices
03
Budget & Compensation Strategy
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Model multiple budget scenarios
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Plan promotion and equity adjustment budgets
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Review pay-for-performance outcomes
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Set compensation budget
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Review merit matrix effectiveness
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Assess cost-of-living adjustments (COLA)
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Finalize incentive plan targets
04
Talent Strategy & Retention
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Identify retention risks
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Review critical skills premiums
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Assess hiring competitiveness
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Incorporate AI and skills-based workforce planning
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Develop succession plans
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Review career pathing
05
Governance & Compliance
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Review pay transparency readiness
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Assess compensation program risks
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Audit legal compliance
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Board or committee review
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Secure documentation
06
Communication & Change Management
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Build a communication strategy
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Train people managers
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Prepare total rewards statements
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Measure employee understanding
07
HRIS & System Readiness
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Update HRIS and payroll systems
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Verify incentive tracking
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Conduct end-to-end compensation cycle testing
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Post-Implementation Review
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Measure budget-to-actual compensation spend
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Analyze turnover, retention, and hiring outcomes
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Evaluate pay equity results
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Assess employee and manager feedback
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Review market positioning
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Identify lessons learned
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Document recommendations for the next cycle
Need expert help implementing these practices? Catapult’s HR team is here for you.
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