Compensation Toolkit

Build a documented pay structure and plan merit increases against your budget. Set one market anchor in the Salary Band Builder to build your grades and place your employees. Then use the Merit Increase Matrix to calculate recommended raises based on performance and range position, with the total measured against your budget target.

Two tools for salary bands and merit planning

The Start Here guide walks you through both tools. Each pairs an Excel workbook with a PDF guide and opens with a worked example.

• Salary Band Builder. Set your Grade 1 midpoint from a market source, then choose the midpoint progression and range spread to build each grade's minimum, midpoint, and maximum. The Employee Placement tab calculates each employee's compa-ratio, range penetration, and status. The Summary brings the results together, and the Benchmark tab shows settings other employers use.
• Merit Increase Matrix. Set increase percentages and cut points by performance and range position. Enter your employees to calculate recommended raises and the blended increase across your workforce. The Budget Scenario tab compares the plan with your available merit budget.
• Quick Reference (PDF). A one-page guide to the Salary Band Builder, covering each tab, what to enter, and how to interpret the results.

Where to begin

Build your salary ranges, review employee placement, and plan merit increases against the budget.

• Set your salary bands. In the Salary Band Builder, enter your Grade 1 midpoint from a salary survey, then choose a progression and spread to calculate the grades and ranges.
• Review employee placement. Enter employees on the Employee Placement tab to see who falls below, within, or above their range. Then review the Summary.
• Plan merit increases. Open the Merit Increase Matrix, set your percentages and cut points, enter your employees, and use the Budget Scenario tab to keep the plan within your merit budget.

Understand the calculations behind your pay decisions

Build your pay structure and merit budget using market data you provide. The tools calculate the plan, while pay equity and legal compliance remain part of your final review.

• Standard compensation formulas. The editable workbooks show the compa-ratio, range penetration, midpoint progression, and merit matrix calculations so you can review how they work.
• Your market data. Set the anchor using salary survey data at your target percentile. Salary survey data is not included in the tools.
• Pay-equity review. Use the plan alongside a pay-equity review, and confirm the figures against current data and applicable law before making final pay decisions.
• Dated and reviewable. The guidance carries a review date, and pay rules vary by location and change over time.

Who this is for and other options

Built for

• An HR or total-rewards owner establishing a pay structure with grades and ranges based on a market anchor.
• A manager or finance partner running the annual merit cycle, with individual raises and the budget total in one place.
• A founder formalizing pay as the company grows beyond individual offers.

If you are looking for

• For either tool individually, the Salary Band Builder and the Merit Increase Matrix are each sold separately.
• For a company-wide review of pay equity and internal fairness, see the Pay Structure and Internal Equity Review.

Before you buy

What format is it and can I edit it?

Two Excel workbooks that also work in Google Sheets, each with a PDF guide. Every input and formula is editable.

Is this legal advice?

No. These are practical compensation tools, not legal advice. Review final pay decisions against applicable law.

Does it include salary market data?

No. You bring the market data from a salary survey and set your anchor from it, usually the market median or a higher percentile for scarce skills. The tools build the structure around the number you provide.

How is this different from buying the two tools separately?

The bundle includes the same Salary Band Builder and Merit Increase Matrix sold individually, with both guides and a single Start Here. Use them together to build your pay structure and plan raises. Both tools are also available separately.

What is the refund policy?

Digital products are covered by a 30-day money-back guarantee. To request a refund, email support@truestephr.com or reply to your receipt within 30 days of purchase.

What happens after I buy?

Your download link appears immediately after checkout. Your receipt arrives by email with the same link. Open Start Here first for the recommended order. For setup questions, email support@truestephr.com.

These compensation tools provide general HR information, not legal advice. Use your own salary survey data, complete a pay-equity review, and confirm figures against current market data and applicable law before finalizing decisions.

How the download works

Your files arrive as a single ZIP download, best opened on a computer. Save it, extract it (right-click and select Extract All on Windows, or double-click on a Mac), then open the Start Here file first. PDFs open in any reader, and editable files work in Microsoft Excel or free equivalents, including LibreOffice and Google Sheets. No other software is needed. Step-by-step help for every device is at truestephr.com/pages/download-help.