One of the most important but difficult parts of building your People strategy is determining the right budget. You need to consider a range of factors including your compensation philosophy, your company goals, and the happiness of your employees. You’ll also need to factor in your planned promotions, hiring plan, and standard merit increases for strong performers.

Spend too much and you’ll be hearing from your board or investors. Spend too little and you’ll have a retention issue. You need to strike the perfect balance.

As People and Finance Leaders, it’s your responsibility to come to the table with a proposal that drives the best outcomes.