Whether your business operates on a calendar fiscal year (January–December) or a July fiscal year (July–June), proactive compensation planning is key. Starting early gives your team ample time to ensure that employee pay structures are competitive, equitable, and aligned with your organization’s goals.
At KMA Human Resources, we help organizations plan ahead so that salary updates are thoughtful, and not rushed or reactionary. Here’s how to time your compensation planning for each fiscal year schedule:
Calendar Fiscal Year Timeline (January–December)
For organizations that operate on a calendar fiscal year, the summer months mark the perfect time to kick off compensation planning. While it may feel early, laying the groundwork now helps ensure that your salary structure, pay practices, and budget align with your goals well before implementation in January.
July: Update or Validate Job Descriptions
Clear, accurate job descriptions are the foundation of effective compensation planning. Reviewing and updating these now ensures that market data comparisons and pay decisions reflect the true scope of each role.
August – September: Gather and Finalize Data
This is the time to benchmark your roles against reliable salary surveys and industry data. This step provides the insights you need to remain competitive and compliant with pay equity requirements.
October – December: Assess Pay and Finalize Budgets
With job data and benchmarks in place, assess your current employee pay levels and salary structures. Identify adjustments, set new salary bands if needed, and finalize your compensation budget before year-end.
January: Implement Salary Changes
With planning complete, your team is ready to implement new salaries and salary bands as part of your annual updates.
July Fiscal Year Timeline (July–June)
For organizations that operate on a July fiscal year, Q1 is the ideal time to begin compensation planning. Starting early in the new calendar year gives you ample time to review job data, analyze market benchmarks, and align your salary structure and budget well before implementation in July.
January – February: Update or Validate Job Descriptions
Clear, accurate job descriptions are the foundation of effective compensation planning. Reviewing and updating these now ensures that market data comparisons and pay decisions reflect the true scope of each role.
March – April: Gather and Finalize Data
This is the time to benchmark your roles against reliable salary surveys and industry data. This step provides the insights you need to remain competitive and compliant with pay equity requirements.
May – June: Assess Pay and Finalize Budgets
With job data and benchmarks in place, assess your current employee pay levels and salary structures. Identify adjustments, set new salary bands if needed, and finalize your compensation budget before year-end.
July: Implement Salary Changes
With planning complete, your team is ready to implement new salaries and salary bands as part of your annual updates.
KMA can support you though any or all of these steps – from job description reviews and market analysis to implementation guidance. Our compensation experts are here to help you design a compensation strategy that supports your people and your business goals.
Let’s build your timeline together! Reach out to the KMA team today to begin your compensation planning journey.