Skill: 1kalin/afrexai-compensation-planner (version 1.0.0)

# Compensation & Salary Benchmarking Planner Build data-driven compensation structures that attract talent without overpaying. Covers base salary bands, equity/bonus frameworks, geographic differentials, and total rewards packaging. ## When to Use - Building or revising salary bands for any role - Preparing for hiring sprints and need market-rate data - Conducting annual compensation reviews - Designing equity/bonus/commission structures - Benchmarking against competitors to reduce turnover ## How It Works When asked to build a compensation plan, follow this framework: ### 1. Role Architecture Define job levels and salary bands: | Level | Title Pattern | Base Range (US) | Equity % | Bonus Target | |-------|--------------|-----------------|----------|--------------| | L1 | Associate / Junior | $45K-$70K | 0-0.01% | 0-5% | | L2 | Mid-level | $70K-$110K | 0.01-0.05% | 5-10% | | L3 | Senior | $110K-$160K | 0.05-0.15% | 10-15% | | L4 | Staff / Lead | $150K-$210K | 0.1-0.3% | 15-20% | | L5 | Principal / Director | $190K-$280K | 0.2-0.5% | 20-30% | | L6 | VP / C-level | $250K-$400K+ | 0.5-2%+ | 30-50%+ | ### 2. Geographic Differentials Apply cost-of-labor multipliers (not cost-of-living): | Tier | Markets | Multiplier | |------|---------|------------| | Tier 1 | SF Bay, NYC, London | 1.0x (baseline) | | Tier 2 | Seattle, Boston, LA, Chicago | 0.90-0.95x | | Tier 3 | Austin, Denver, Manchester, Berlin | 0.80-0.85x | | Tier 4 | Remote US/UK secondary markets | 0.70-0.80x | | Tier 5 | Eastern Europe, LATAM, SEA | 0.40-0.60x | ### 3. Total Compensation Package Break down total rewards: **Cash Compensation** - Base salary: 60-80% of total comp (varies by seniority) - Performance bonus: 5-30% of base - Commission (sales roles): 40-60% of OTE **Equity Compensation** - Startup (pre-Series B): 0.01%-2% based on level, 4-year vest, 1-year cliff - Growth stage: RSUs, lower % but higher dollar value - Public company: RSU grants refreshed annually **Benefits & Perks** (typically 20-35% on top of base) - Health insurance: $6K-$24K/yr employer cost per employee (US) - 401(k)/pension match: 3-6% of salary - PTO: 15-25 days (US), 25-33 days (UK/EU statutory + company) - Learning budget: $1K-$5K/yr - Remote stipend: $100-$250/mo - Parental leave: 12-26 weeks (competitive) ### 4. Pay Equity Audit Run these checks quarterly: 1. **Compa-ratio by role**: Actual pay ÷ midpoint of band. Target: 0.90-1.10 2. **Gender pay gap**: Compare median comp by gender within each level 3. **Tenure compression**: Are new hires making more than 2-year veterans? Fix with retention adjustments 4. **Band penetration**: % of employees above 1.0 compa-ratio (flag if >30%) ### 5. Annual Review Cycle | Month | Action | |-------|--------| | Jan | Market data refresh (Levels.fyi, Glassdoor, Radford, Mercer) | | Feb | Manager calibration sessions | | Mar | Budget allocation (typically 3-5% of payroll for merit increases) | | Apr | Communicate adjustments, effective date | | Jul | Mid-year equity refresh grants | | Oct | Prepare next year's comp budget proposal | ### 6. Offer Benchmarking Checklist Before extending any offer: - [ ] Check 3+ data sources (Levels.fyi, Glassdoor, Payscale, LinkedIn Salary) - [ ] Confirm geographic tier and apply multiplier - [ ] Calculate total comp (base + bonus + equity annualized + benefits value) - [ ] Compare to internal peers at same level (±10% band) - [ ] Document justification if above band midpoint - [ ] Get sign-off from hiring manager + finance/HR ### 7. Retention Risk Scoring | Factor | Weight | Score (1-5) | |--------|--------|-------------| | Below market rate (>10% under) | 25% | | | Time since last raise (>18 months) | 20% | | | Flight risk signals (LinkedIn active, disengaged) | 20% | | | Critical role / hard to replace | 20% | | | Tenure > 3 years with no promotion | 15% | | **Score > 3.5** = immediate retention conversation needed **Score 2.5-3.5** = include in next review cycle, prioritize **Score < 2.5** = monitor quarterly ### 8. Commission & Sales Comp For revenue roles, design OTE (On-Target Earnings): - **Base:Variable split**: 50:50 (hunters), 60:40 (farmers), 70:30 (CS/AM) - **Accelerators**: 1.5-3x rate above quota (motivates overperformance) - **Decelerators**: 0.5x rate below 80% quota (protects company) - **Clawback policy**: Define for churned deals within 90 days - **SPIFs**: Short-term incentives for strategic pushes ($500-$5K per qualifying action) ## Key Metrics to Track - **Offer acceptance rate**: Target >85% (below = comp is off-market) - **Regrettable attrition**: Target <10% (above = retention issue) - **Time to fill**: If increasing, may signal comp competitiveness problem - **Cost per hire**: Include recruiter fees, signing bonuses, relocation - **Revenue per employee**: Benchmark against industry ($200K-$400K SaaS, $150K-$250K services) ## Data Sources (2026) - Levels.fyi — Best for tech roles, real verified data - Glassdoor — Broad coverage, self-reported - Payscale — Small business focus - Radford (Aon) — Enterprise-grade, paid surveys - Mercer — Global comp data, paid - LinkedIn Salary Insights — Good for role-specific ranges - BLS Occupational Employment Statistics — Government baseline --- ## More Frameworks Need deeper operational frameworks for your industry? **[AfrexAI Context Packs](https://afrexai-cto.github.io/context-packs/)** — $47 each. Pre-built agent knowledge for Fintech, Healthcare, Legal, SaaS, Recruitment, and 5 more verticals. **[AI Revenue Calculator](https://afrexai-cto.github.io/ai-revenue-calculator/)** — Free tool. Find where you're losing money to manual work. **[Agent Setup Wizard](https://afrexai-cto.github.io/agent-setup/)** — Configure your AI agent stack in minutes. **Bundles:** - Pick 3 packs — $97 - All 10 packs — $197 - Everything bundle — $247


Security scan verdicts — ClawScan: clean | static analysis: clean | VirusTotal: clean | SkillSpector: clean (LOW)