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AI agent for compensation analysts

Merit Cycle Planning Agent

Merit proposals within budget and guidelines before final approval

Merit Cycle Planning Agent: what goes in, what the agent does and what you get

What it does

Merit cycles go over budget or out of policy when proposals are checked only at the end. During the cycle, this agent checks every manager's proposals as they come in. It compares each increase to the merit matrix by performance and position in range, checks the team total against the budget, and flags increases that push pay over range maximum. It drafts a note to each manager listing what is outside guidelines and why, and suggests a lump sum where pay would exceed the maximum. When managers revise, it rechecks. It rolls up totals for HR leaders by department. The analyst approves exceptions and the final file to payroll. Edge case: a manager gives a 0% increase to a top performer, so the agent flags it as a likely error.

How it works

Follow the arrows from top to bottom. The orange dashed arrow is the loop: when a check fails, the agent goes back and tries again.

Start and resultWhat it doesA check on its own workWaits for your OKGoes back and retries
Yes, continueApprovedNo 1 STARTS WHEN Merit planning window opens 2 USES A TOOL Pull manager proposals 3 DOES Compare each increase to the merit matrix 4 DOES Check team totals against budget 5 CHECKS THE RESULT Is each team within budget and guidelines? If not: send the manager a list of issues and recheckthe revision. Back to step 3. 6 YOU APPROVE Analyst approves exceptions and final file 7 RESULT Final merit file ready for payroll
Read the steps as a list
  1. Merit planning window opens
  2. Pull manager proposals
  3. Compare each increase to the merit matrix
  4. Check team totals against budget
  5. Is each team within budget and guidelines?If not: send the manager a list of issues and recheck the revision. Back to step 3.
  6. Analyst approves exceptions and final fileThe agent waits here for your OK.
  7. Final merit file ready for payroll

How it decides

It compares each increase to the matrix band and the team total to the budget, and flags any outlier.

  • Increase outside matrix band by over 1 point: needs reason
  • Team over budget by over 0.2%: return to manager
  • Pay over range maximum: suggest lump sum instead

Make it yours

Every agent is a starting point. You choose these settings for your own situation.

  • Merit matrix
  • Budget tolerance
  • Range maximum policy
  • Daily report time

What keeps you in control

It always asks you first

  • Exceptions to guidelines
  • Final merit file

Hard limits

  • Never changes proposals itself
  • Never sends files to payroll without approval

It stops when

  • Done: all teams approved
  • Stop: budget not set

Set it up

We guide you through the set-up, step by step

Members get the full set-up guide for this agent. No technical skills needed: you copy, paste and upload.

10 minto set it up in your AI
5 AIsChatGPT, Claude, Copilot, Gemini, Grok
  • One set of instructions to paste into your AI, with the clicks for ChatGPT, Claude, Microsoft 365 Copilot, Gemini and Grok
  • The agent then walks you through connecting your own data, one source at a time
  • A downloadable copy with the flow chart, the rules and the full guide
Get access to this agent

An example run

What happensOn February 10, sales operations was 0.6% over budget, with one 9% increase for a meets-expectations rating against a 3 to 4% band. The agent sent the manager a note with the matrix. The revision lowered it to 4%, and the recheck showed the team on budget. The analyst approved the file for payroll.

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