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Performance Compensation Applier

Business Operations Updated 2026.08.30

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About this skill

Problem Addressed

Annual raise cycles often get stuck between performance ratings, role coefficients, and budget balance: how much S/A talent should receive, how to limit C/D impact, how to split the bonus pool, and whether the result creates pay inversions or budget overruns. This skill turns performance outcomes into a reviewable raise and bonus allocation plan, not just a rating table.

How It Works

Input should include an employee list, current monthly salary, role coefficient, performance rating, total raise budget, and total bonus pool. Choose forced distribution or 9-box model: the former allocates by rating × role coefficient for annual raises; the latter differentiates by performance × potential. Output is split into:
- Overview: budget usage, remaining budget, average raise.
- Model detail: forced distribution matrix or 9-box distribution.
- Employee detail: raise amount, raise percentage, new salary, bonus.
- Compliance checks: budget overrun, rating distribution issues, raise frequency issues.
- Linkage suggestions: if bandwidth data exists, preview post-raise health and inversion risks.

Boundaries

It is decision support, not a formal compensation committee decision, and it does not modify salary architecture. It covers cash salary and bonuses only, excluding equity, options, and long-term incentives. Without historical raise records or bandwidth data, related checks are skipped; raise coefficients cannot be customized as nonlinear functions.

Use Cases

  • An HRBP preparing annual compensation uses it to convert employee ratings, current salaries, and role coefficients into a forced-distribution raise and bonus plan.
  • A compensation owner reviewing the bonus pool uses it to test budget usage and request proportional compression options when the allocation exceeds approved funds.
  • An OD analyst with a 9-box grid uses it to create differentiated raise strategies that separate high-potential low-performance staff from low-potential high performers.
  • A business leader before a raise committee uses historical raise records and bandwidth data to check frequency anomalies and pay-inversion risks for the proposed plan.

Best For

  • HRBPs running annual raises who need explainable raise details based on ratings, role coefficients, and budget balance.
  • Compensation teams who need budget usage, bonus allocation, and overrun compression drafts for committee review.
  • OD analysts who use performance-potential 9-box data to separate high-potential and low-potential staff for incentive planning.
  • Business leaders who need individual raise size, new salary, and pay-inversion risks before a compensation meeting.