Compensation Toolkit

Build a defensible pay structure and run a merit cycle against a budget, with the two tools large companies use to do both. Set one market anchor and the Salary Band Builder builds your grades and places your people, then the Merit Increase Matrix turns performance and range position into a recommended raise for each person and rolls it up against your target.

Two tools, each with a guide, that cover building bands and spending the merit budget

A Start Here sets the order, and each tool pairs an Excel workbook with a PDF guide and opens on a worked example.

• Salary Band Builder. Set your Grade 1 midpoint from a market source, pick a midpoint progression and a range spread, and the grades build with a minimum, midpoint, and maximum. The Employee Placement tab returns each compa-ratio, range penetration, and status; a Summary rolls it up; and a Benchmark tab shows the settings other employers use.
• Merit Increase Matrix. Set your increase percentages by performance and range position and your cut points, enter your people, and it recommends each raise with the blended increase. The Budget Scenario tab checks the plan against the merit budget you have to spend.

The order to work in

Build the structure first, place your people, then size the raises against the budget.

• Build the bands. In the Salary Band Builder, set your Grade 1 midpoint from a salary survey, then choose a progression and a spread so the grades and ranges build for you.
• Place your people. Enter your employees on the Employee Placement tab to see who sits below, within, or above their range, then read the Summary.
• Size the raises. Open the Merit Increase Matrix, set your increase percentages and cut points, enter your people, and use the Budget Scenario tab to hold the plan to your merit budget.

Built on standard formulas and honest about its limits

This gives you a grounded structure and a budgeted plan; it does not supply the market data, and it does not decide whether your pay is equitable or lawful.

• The formulas large employers use. Compa-ratio, range penetration, midpoint progression, and a merit matrix are standard practice, built here in an open workbook you can read.
• You bring the market data. The tools do not include salary survey data; you set the anchor from a survey at the percentile you target.
• A plan, not a pay-equity ruling. Pay decisions carry legal and equity weight, so run a pay-equity review and confirm figures against current data and applicable law before you finalize anything.
• Dated and reviewable. The guidance carries a review date, and pay rules vary by location and change over time.

Who it is built for and where to go if that is not you

Built for

• An HR or total-rewards owner setting up a first real pay structure, who wants grades and ranges grounded in a market anchor.
• A manager or finance partner running the annual merit cycle, who needs each raise and the budget roll-up in one place.
• A founder formalizing pay as the company grows beyond ad-hoc offers.

If you are looking for

• Only one of the two tools. The Salary Band Builder and the Merit Increase Matrix are each sold on their own.
• A read on pay equity and internal fairness across the company. The Pay Structure and Internal Equity Review is built for that.

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, and the files are yours to keep.

Is this legal advice?

No. These are practical compensation tools and general information, not legal or tax advice. Pay decisions carry legal and equity weight, so review them 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?

It is the same Salary Band Builder and Merit Increase Matrix, bundled with both guides and a single Start Here so the structure you build feeds the raises you plan. Buy the bundle if you want both; buy either tool on its own if you only need one.

What is the refund policy?

Digital products are covered by a 14-day money-back guarantee. See the refund policy for the full terms.

What happens after I buy?

Checkout delivers an instant download link, and a receipt with the same link arrives by email. Open the Start Here first; it sets the order to work in. If a file gives you trouble, email support@truestephr.com.

Practical compensation tools and general information, not legal or tax advice. The tools do not include market salary data, so bring that from a survey, run a pay-equity review, and confirm figures against current market data and applicable law before you finalize anything. Last reviewed June 2026.