With Carta's Compensation tool you can build a competitive compensation strategy.
The tool allows you to access precise benchmarks based on role, level and location, customise compensation bands for your organisation and review compensation holistically with employee scorecards.
- Configuring Compensation
- Compensation Bands Overview
- Salary Benchmarks (Beta)
- Editing Bands and Benchmarks
- Exporting Compensation Data
- Employee Scorecards
Configuring Compensation
1. Navigate to Stakeholder Management > Compensation.
2. If the HR System Integration is not enabled, click Enable HR integrations and follow these instructions before continuing.
3. Once you have successfully enabled HR Integrations, click Configure compensation.
If you have any pending Employee updates, you will be prompted to Review pending employees before continue.
4. Confirm your job families: Import your job families from your HR system and map them to Carta by selecting the corresponding Carta job family from the dropdown. Click Continue.
5. Configure your job levels: Select your job levels across all job families and confirm their role name. Mark the checkbox for the Carta levels that apply to your company and modify the Role name if applicable. Click Continue.
You can also review each Carta Level in detail by clicking the level.
6. Configure your bands: Set up your primary location, which is often your headquarters location or where most of your employees are located and then add the salary and equity bands of your primary location. Click Continue.
- Minimal salary: minimal salary for that role and level, annual value.
- Maximal salary: maximal salary for that role and level, annual value.
- % of salary: the percentage of salary for equity compensation.
- Equity range: automatically calculated by the system based on the percentage of equity for minimal and maximal salary.
7. Configure benchmarks: Set up the parameters of the industry-standard benchmarks you want to use for your equity compensation. Click Complete configuration.
- Benchmark location: the specific market you'll use as the reference point to compare compensation data.
- Company stage: the company's valuation used as a reference point for comparing compensation data.
- Benchmark target percentile: the specific point in compensation data that your company aims to match or exceed when setting compensation levels.
Compensation Bands Overview
Once the Compensation tool is successfully enabled, you can access it by navigating to Stakeholder Management > Compensation > Bands.
- Salary bands range: configured during Compensation set-up.
- Mid salary: the midpoint of the salary compensation range of a level.
- % of salary: the percentage of salary for equity compensation, configured during Compensation set-up.
- Equity bands range: automatically calculated by the system based on the percentage of equity for minimal and maximal salary.
- Mid equity: the midpoint of the equity compensation range of a level.
- Benchmarks: the equity benchmark (percentile) is set by the target percentile in your benchmark settings. It represents the total gross value of your employees' initial grant, covering the entire grant period (e.g. 4 years of vesting) before deductions like taxes and exercise costs.
- Equity Ratio: the Equity compa-ratio compares the equity midpoint to the benchmark target. A ratio of 1 indicates that the equity compensation midpoint matches the benchmark. Below 1 indicates it's below the benchmark, and above 1 indicates it's above the benchmark.
Salary Benchmarks (Beta)
Enable Salary Benchmarks by clicking the toggle.
- Salary Benchmarks: The salary benchmark of the current percentile is set by the target percentile in your benchmark settings.
- Salary ratio: The Salary compa-ratio compares the salary midpoint to the benchmark target. A ratio of 1 indicates that the salary compensation midpoint matches the benchmark. Below 1 indicates it's below the benchmark, and above 1 indicates it's above the benchmark.
Editing Bands and Benchmarks
To edit Compensation bands (salary and equity ranges of the job families and levels you've already) or Job families and levels:
- Navigate to Stakeholder management > Compensation > Bands.
- Click Manage bands > select which setting you will modify. Ensure you Save the changes.
To edit Benchmarks settings (the parameters of the industry-standard benchmarks you want to use for your equity compensation):
- Navigate to Stakeholder management > Compensation > Benchmark settings. Update the settings and click Save.
Exporting Compensation Data
1. Navigate to Stakeholder management > Compensation > Bands.
2. Click Reports.
3. Click Request report. You can download the report via a modal at the bottom of the page or via e-mail.
Employee Scorecards
The employee scorecard displays employees' current salary and equity compensation compared to the compensation band for their job levels. This comparison is represented as the compensation score.