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Set up budget pools

Packages: Basic | Standard* | Premium

* Available as an add-on

Budget pools are budgets that you can create to establish the amount that can be spent within the compensation review.Ā 

You can set up an overall budget for all spending or set up several budget pool allocations for specific uses. For example, you can configure the following for your compensation review:

  • a cost of living budget pool that applies to all eligible employees, and
  • a separate merit budget pool that reviewers can use for performance-based compensation adjustments.

ChartHop also allows you to configure budget pools so that they’re applicable to specific categories of employees (for example, based on department, team, level, location) or even based on the definition of built-in and custom fields. These allow you to create individual budget allocations for each reviewer.

Your reviewers and approvers see the budget pools you establish when they perform the employee compensation reviews and work within those budgets.

Setting up budgets also allows ChartHop to provide your reviewers and approvers with real-time visualizations of the financial impact of compensation changes against those budgets. Learn more.



If you choose not to set up budgets, ChartHop still displays a visualization of how much is spent within the compensation review but does not compare that against a specific budget.

Expand a budget to configure the budget pool settings
Expand a budget to configure the budget pool settings

To establish budget pools, open an existing compensation review with a status of Not started or Paused. Select the Budget pools tab.

Set the budget allocation type

Before you create any budget pools, you should define how your budgets will be allocated. You can choose to have your budgets allocated proportionally or sequentially:

  • When your budgets are allocated proportionally, ChartHop allocates proportionate amounts from each applicable budget pool (when multiple budget pools apply). For example, allocating proportionally from both a Market and Merit budget pool.
  • When your budgets are allocated sequentially, ChartHop tries to fully allocate from the first applicable budget pool before allocating from the next one. The order in which amounts are allocated depends on the order in which you create your budget pools. For example, allocating first from a Market budget pool and then from a Merit budget pool for the remainder.

For sequential allocation to occur, the same fields and calculations must be used across different budget pools.

To set the budget allocation type:

  1. In the Budget pools section, navigate to the Settings section. These settings apply globally to all budget pools you create.
  2. In the Allocation Type field, select how you want your budget allocation to be made. Choose from the following:
    • Proportional
    • Sequential
  3. Your settings are saved automatically.

Create a budget pool

You can set up multiple budget pools to allocate and track specific budgets within your organization (for example, merit increases and market adjustments).

To create a new budget pool:

  1. Select New budget pool.
  2. Configure the budget pool settings according to the parameters you want to implement. See below for a description of all fields.
  3. Once you are finished, select Calculate to process the calculations and display the calculated budgets for each reviewer based on the settings you entered. You can scroll horizontally to see the full view of the calculated budget.

Establish an overall budget

An overall budget tracks overall spend. Depending on your organization's compensation policies and planning, you can set up an overall budget to track the total spend in the compensation review.

To establish an overall budget:

  1. Select New budget pool.
  2. Configure the overall budget settings according to the parameters you want to implement. See below for a description of all fields.
  3. Once you are finished, select Calculate to process the calculations and display the calculated budgets for each reviewer based on the settings you entered. You can scroll horizontally to see the full view of the calculated budget.

Delete a budget pool

You can delete a budget pool when you'd rather start over with a new configuration. Deleting a budget pool doesn't affect any other budgets you've created.

To delete a budget pool:

  1. Select the Budget pools tab.
  2. Expand the budget pool you want to delete.
  3. Select Delete.
  4. Select Confirm to delete the budget pool.

Budget settings

The following table describes the configuration fields you can apply to your budgets:

Field

Description

Example

Basics





Budget label

The name of your budget.

Merit - US

Employees the budget pool applies to

Establishes the group or category of employees to which the budget pool applies. Reviewers and approvers can edit compensation based on availability within this budget pool.



Select from the following dropdown options:

  • All eligible employees
  • Only specific departments
  • Only specific teams
  • Only specific levels
  • Only specific locations
  • Custom…

Only specific locations

  • United States

Only specific departments

  • Engineering
  • Sales

Fields





Field the budget is calculated based upon

Determines the ChartHop field (either built-in or custom) upon which the calculations are based.



For example, if you choose Base, then ChartHop uses the current values of that field to perform the calculations you enter in the Calculation section.

Base



Base - annualized

Field budget is allocated from

Determines the ChartHop field (either built-in or custom) from which the budget spend is tracked.

For example, if you choose Base - changed, when reviewers and approvers change the contents of the the Base - changed column in the reviewer workbook, ChartHop uses the difference between the new entered amount and the previous amount (in other words, Base versus Base - changed) to figure out how much is being spent. That amount is tracked and shown within the budget allocation visualizations.

Base - changed Base - raise amount

Calculation





Are calculations dependent on one or more field values, like department?

Determines whether the amount is calculated based on how a specific built-in or custom field is defined (for example, department, performance).



Select Yes to establish additional considerations for the budget calculations based on specific fields. Selecting Yes displays the Which field affects the calculation? field underneath.

Select No, the calculation is the same for everyone to apply the calculations evenly across all eligible employees for the budget pool.

Yes

Which field affects the calculation?

Determines the built-in or custom field that affects the calculation. When you select a field, you can define how the values of this field specifically affect the budget calculations.



Only fields with the following data types can be selected:

  • Number

  • Money
  • Percent
  • Single select

Performance rating



Division



Business OperationsĀ  2%

Customer Support 2%

Sales 4%

Finance 2%

Legal 2%

Marketing 3%

Product 3%

R&D 4%

Calculation

Determines the specific calculation that is processed to affect the budget.

Select from the following dropdown options:

  • Percent - Enter a percentage amount.
  • Set amount (number) - Enter a numeric amount.
  • Set amount (money) - Enter a currency amount.
  • Custom - Enter a specific formula.

Percent

Target value

Establish a target value for the calculation.

1.5%

Updated 23 Nov 2022
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TABLE OF CONTENTS
Set the budget allocation type
Create a budget pool
Establish an overall budget
Delete a budget pool
Budget settings