Salary Budgeting System (SBS)

 “SBS truly streamlined our budgeting process and literally saved us weeks of tracking, analysis and reporting…”

VP/Compensation Systems and HRIS, Sky Financial Group

The Centrix Salary Budgeting System (SBS) will directly impact your budgeting routine and allow you to better control the bottom line.  SBS is a compensation management and budgeting system designed to accurately project employee salaries, payroll taxes and benefits, while significantly reducing the amount of time dedicated to this process.

SAVE TIME, REDUCE COSTS AND IMPROVE ACCURACY

• Project and Budget for Wages, Benefits and Tax Liability
• Workflow Automation for the Budget Approval Process
• Browser Interface for Efficient Software Administration
• Simplified Management Reporting

Salary Budgeting and Administration

As organizations prosper, management at all levels must continually address the diverse challenges associated with growth. One such challenge specific to personnel is how to accurately and efficiently budget for "the cost of employment".  Although this process can be subjective, a consistent sentiment amongst chief financial officers and human resource executives is that  salaries, workers compensation insurance premiums, health, life and dental insurance premiums, employer 401k contributions and payroll taxes are all part of the equation.  To this end, SBS is the solution! 

SBS is specifically designed to streamline the salary budgeting routine by providing management with an on-line modeling tool to project corporate salary figures (including FICA) without affecting the payroll system. In addition, efficiency is gained because department managers use the system to enter key budgetary data such as anticipated overtime, projected commissions, incentive pay, bonus dollars and employee ratings.  In the end, organizations will realize substantial benefits and time savings from having a single on-line system that caters to the salary budgeting needs of the entire company.

Features of the SBS are:

• On-line “what if” salary projections independent of - but interfaced with - the payroll system.
• Simple user interface that is used by department managers to input data critical to wage and salary projections.
• Workflow automation for budget approval
• Modeling scenarios and reporting by department and company
• Peer compensation analysis
• Management reports that detail both current and projected salaries
• Multi-company processing
• Import functionality to populate the SBS database from a payroll system
• Integration of approved budgetary figures to general ledger and accounting systems
• On-line “snapshot” review of budgetary figures by company/department

 On-line Salary Projections

SBS simplifies salary projections by empowering human resource administrators to perform “what if” projections using parameter driven scenarios. This on-line modeling functionality starts with the administrator defining a current “market point” for each position. A market point represents an average salary for similar positions (peers) within the local or regional job market and is used to calculate a compensation ratio (compa-ratio) for each employee.

On-line modeling then enables projected wages and salaries to be calculated using budget projection rules and the compa-ratio and performance rating of each employee.  If needed, repeated adjustments can be made until executive management approves the projected budget for salaries and compensation.  A major benefit of SBS is the immediate feedback in the form of both an on-line summary and on-line or printed reports.

User Interface and Workflow Simplify Salary Administration

The user interface of SBS provides management with a convenient budget administration tool by allowing managers to input all salary related budget data directly into the system. As a result, the numerous spreadsheets commonly used for this function are eliminated and human resource associates are alleviated from having to accumulate and organize disparate data. 

Once a supervisor has completed the input and verification of their budget, a workflow process automatically forwards the submitted figures to the next level manager (level-2) for approval.  At this level, the manager can review the submitted budget of each subordinate supervisor, then approve or deny them on a one-by-one basis.  After the manager has approved the budget figures for each subordinate supervisor, the workflow continues and the consolidated numbers are passed to the next level manager (level-3) for approval.  This process occurs throughout the organization to make the budget approval process both efficient and organized. 

After all salary projections have been approved by the budget administrator, managers can be restricted from altering the numbers.  However, the system remains a valuable resource throughout the year as managers have on-line access to employee salary information.  At all times managers are restricted to only those departments to which they have been assigned.

Data Import and Export

The stand-alone design of SBS provides salary modeling and reporting independent of payroll or accounting systems, yet promotes efficiency by integrating with other applications. In addition, moving data electronically insures accuracy by minimizing manual data input.

The optional data import function will populate the SBS database with all current salary and position information from the payroll processing system. Following the import, the administrator can manually adjust the data as needed in preparation for modeling and reporting. Once the projection process is complete and all salary budgetary figures have been approved, an export function provides an efficient means of transferring this data to a general ledger or accounting system to be included with the comprehensive budget.

To discuss the Centrix Salary Budgeting System in more detail, contact us via email at info@centrixsolutions.com or call 402.488.3990.