Compensation Bands

Compensation Administrators have access within the Paychex Flex Engage product to access Compensation Band data from the left hand menu by selecting Manage Compensation -> Compensation Bands.

What are Compensation Bands?

Compensation Bands can be created in Paychex Flex Engage to organize employees into pay groups to better benchmark employees in similar roles and how their pay levels differ. These Compensation Bands can be used to see quickly if there are certain employees who may be underpaid/overpaid compared to their peers in a similar role. 

Creating Compensation Bands

When creating a compensation band you will be asked to fill out the following fields:

Name:

This field will be used to show compensation recommenders for the employee when showing their compa-ratio.

Job Type:

This selection will help admins organize and create their structure for their bands if the names of bands happen to be similar this can be used to differentiate between seniority levels.

Base Pay Amounts:

You are able to enter a Min, Target, and Max base pay amount for your compensation band. This value will be added to the variable pay amounts enter below to determine your final Min, Target, and Max values for your compensation band. These two values will show in real time to the right in the Projected Total Compensation amount.

Variable Pay Amounts:

You are able to enter a Min, Target, and Max Variable pay amount to each compensation band. While this field is required, you are able to enter a value of 0 if the role is primarily just a base pay role. This amount entered will be added to your base pay amount entered for the role to determine the final pay amounts.

Employees to Include:

Employees can be added to a compensation band through two different ways:

Include by Position:

You are able to add employees to compensation bands by selecting the name of the positions you would like to be included. You are able to add one or more positions by selecting them from the dropdown. By selecting positions, this will ensure that any new employees added to that position will be assigned to the compensation band with no manual work required. Keep in mind, once a position is assigned to a compensation band, it will no longer be able to be added to a different compensation band. If you want to change a position from one band to another, it will first need to be deleted from the first and then added to the second band you would like.

Individual Employees:

You are able to add employees to compensation bands by also selecting individual employees from the employee dropdown. By adding an individual employee to a compensation band, this will override their assignment to a compensation band if they are in one based on their position. Always remember who you add manually so if their position ever changes you can remember to update their band since it will not automatically shift their band when adding through the individual employee selection.