What Managers Want HR Teams to Improve in Compensation Planning

💡 HR teams spend months preparing for compensation cycles—but how do managers actually experience them?

At Aeqium, we collect optional post-cycle feedback from managers using our platform. After analyzing 500+ responses, we’ve found the top three recurring themes that managers want HR teams to improve in compensation planning.

Here’s what managers say they struggle with—and how HR can make comp cycles smoother.

1️⃣ Managers Want to Better Understand Pay Ranges

The challenge: Many managers struggle to understand how pay ranges are determined—even those who don’t question market data.

Common Manager Feedback:

• "How was this pay range set?"
• "What data is being used to determine fair compensation?"
• "I want more context on how salary bands are structured."

The fix: HR teams should provide clear documentation on:
- The market data used to set pay ranges.
- Job matching criteria for benchmarking salaries.
- The organization’s pay philosophy (e.g., targeting 50th percentile of market).

💡 Solution: Consider sharing a document explaining market data sources, job leveling, and pay structure. Managers who understand comp philosophy can advocate for it better.

2️⃣ Managers Want to Better Understand Budgets

The challenge: Managers often feel in the dark about how compensation budgets are set—leading to frustration and miscommunication.

Common Manager Feedback:

• "Why is my budget different from last cycle?"
• "How was my team’s allocation determined?"
• "Who actually decides these budget constraints?"

The fix: HR teams should provide budget transparency by:
- Explaining how budgets were determined this cycle.
- Addressing why budgets may fluctuate (e.g., financial performance, market adjustments).
- Redirecting budget-related complaints to the right decision-makers.

💡 Solution: Preemptively document budget logic before compensation cycles start. This stops unnecessary frustration and keeps comp teams from fielding repeat questions.

3️⃣ Managers Actually Want LESS Information (At First)

The challenge: Compensation planning tools—whether spreadsheets or software—often overload managers with too much data upfront.

Common Manager Feedback:

• "I don’t need to see every detail by default."
• "The interface is overwhelming with too many columns."
• "I want a simpler view before diving into specifics."

The fix: Instead of forcing managers to scroll through hundreds of data points, HR teams should:
- Provide a simplified default view of salary and bonus recommendations.
- Allow managers to drill down into details only when needed.
- Use custom views or hidden columns to declutter spreadsheets.

💡 Solution: In Aeqium, HR teams can create custom manager views tailored to specific decision-making needs—ensuring managers only see what’s relevant.

How HR Can Use This Feedback to Improve Compensation Planning

Managers play a crucial role in driving fair and effective compensation decisions—but they need the right tools and clarity to do it well.

Key takeaways for HR teams:
‍
- Make pay ranges easier to understand by sharing documentation on market data.
- Be transparent about budgets to minimize confusion and complaints.
- Simplify compensation planning tools so managers aren’t overwhelmed with data.

At Aeqium, we help HR teams build a better compensation planning experience for managers and employees alike.

💡 Want to streamline your next comp cycle?
👉 Book a demo today!

‍