Establish policies and procedures

Trigger: A mandate from HR leadership, a shift in market conditions, or a regulatory update requires the creation or revision of compensation rules.

1. Assess current compensation strategies and regulatory requirements
2. Draft compensation policies based on market benchmarks and internal equity
3. Define specific procedures and formulas for calculating base and variable pay
4. Review drafted procedures with legal, finance, and HR leadership
5. Obtain formal executive approval for the compensation framework
6. Publish the finalized policies and procedures to the central HR repository

Outcome: Standardized, compliant compensation policies and calculation procedures are approved, documented, and published for HR use.