> ## Documentation Index
> Fetch the complete documentation index at: https://docs.encoreos.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Compensation Management

> Define position-based salary bands with min/mid/max ranges and market percentiles — the structured pay framework behind merit planning and total-compensation statements.

## Overview

Compensation Management (HR-15) is where you define and govern the pay structure for
your organization: **salary bands** tied to positions, **merit increase** planning,
and **total-compensation statements**. Open it from **HR → Compensation**.

The foundation of the module is the **salary band** — a min / midpoint / max pay
range for a position, anchored to a market percentile. Bands give every pay
decision a consistent reference point (the *compa-ratio*: an employee's pay
relative to the band midpoint) and feed merit planning and equity analysis.

## Salary bands

The Salary Bands surface lists every active band with its position, range
(minimum, midpoint, maximum), spread, market percentile, and effective date. Use
**Add Salary Band** to define a new range, or filter by position to review a
specific role's structure.

<Frame caption="Salary Bands — position-based pay ranges with min/mid/max, spread, and market percentile.">
  <img src="https://mintcdn.com/encoreos/9uGfYOeeHogjmoRk/images/hr-compensation/salary-bands.png?fit=max&auto=format&n=9uGfYOeeHogjmoRk&q=85&s=4d1d0a3918d94b1ecbe36f838b11aa24" alt="HR compensation salary bands management surface" width="1440" height="900" data-path="images/hr-compensation/salary-bands.png" />
</Frame>

Each band records:

| Field                        | Meaning                                                                     |
| ---------------------------- | --------------------------------------------------------------------------- |
| Position                     | The role the band governs (e.g. Residential Counselor, Clinical Supervisor) |
| Minimum / Midpoint / Maximum | The pay range floor, target, and ceiling                                    |
| Spread                       | Maximum relative to minimum — the width of the range                        |
| Market %                     | The market percentile the band targets (e.g. P50 = market median)           |
| Effective                    | The date the band takes effect                                              |

## How bands are used

* **Compa-ratio** — an employee's base pay divided by their band midpoint, so you
  can see who sits below, at, or above target for their role.
* **Merit planning** — proposed increases are evaluated against the band so raises
  keep people within their range.
* **Equity analysis** — bands provide the structure for reviewing pay consistency
  across positions.

## Permissions

| Capability                           | Required access                                                 |
| ------------------------------------ | --------------------------------------------------------------- |
| View salary bands                    | `org_admin` / `hr_admin` / `hr_manager`, or `hr.compensation.*` |
| Create and edit salary bands         | `hr_admin` / compensation manager                               |
| View own compensation (self-service) | The employee, via **My Compensation**                           |

<Info>
  The screenshot above is generated automatically from the local end-to-end test
  lane (`tests/e2e/hr/hr-15-compensation-docs-shots.spec.ts`, run via
  `npm run docs:shots`) against synthetic seed data. That spec also runs an
  auto-heal gate — it fails on any console error, page error, or HTTP ≥ 400 while
  driving the surface — so the image reflects a clean, real render and is checked
  by the screenshot drift gate.
</Info>