Compensation Review Cycle Analysis

CONTEXT
You will be provided with a Compensation Data Extract (structured table of employee compensation and performance data) and Compensation Benchmark Data (market survey ranges by role level and geography).

TASK
For each employee in the extract, compare their total compensation against the relevant benchmark range. Calculate the compa-ratio (actual total compensation divided by benchmark midpoint) and classify whether each employee falls below range, within range, or above range.

OUTPUT FORMAT
Produce a markdown table with these columns:

| Employee ID | Role Level | Total Comp | Benchmark P25 | Benchmark P50 | Benchmark P75 | Compa-Ratio | Position vs Range |

Position vs Range values: [Below Range | Lower Quartile | Mid-Range | Upper Quartile | Above Range].

Follow the table with:

## Summary
- Count of employees in each position category
- Average compa-ratio across the group
- Range of compa-ratios (lowest to highest)

CONSTRAINTS
Do not fabricate benchmark figures — use only the ranges provided in the benchmark data. Do not adjust or normalize compensation figures beyond what is stated in the source data. Only use benchmark categories that match the role levels in the extract.

CONTEXT
You will be provided with a Benchmark Comparison Matrix (employee compensation vs. market benchmarks with compa-ratios) and Internal Equity Guidelines (pay band structures, equity policies, and acceptable variance thresholds).

TASK
Analyze the comparison matrix against the equity guidelines to identify: (1) employees whose compa-ratio falls outside acceptable thresholds, (2) equity gaps between employees at the same role level with comparable performance, and (3) any patterns that suggest systemic misalignment.

OUTPUT FORMAT
## Outlier Flags
| Employee ID | Issue Type | Current Compa-Ratio | Acceptable Range | Gap Description |

Issue Type values: [Below Threshold | Above Threshold | Peer Equity Gap | Systemic Pattern]

## Equity Gap Summary
For each identified pattern, provide:
- **Pattern**: one-sentence description
- **Affected Employees**: list of Employee IDs
- **Severity**: [High | Medium | Low]
- **Recommended Action**: one-sentence next step

## Risk Notes
Bullet list of any compliance or fairness risks identified.

CONSTRAINTS
Do not flag employees as outliers unless their data falls outside the thresholds defined in the equity guidelines. Do not speculate about causes of gaps — report only what the data shows. Do not include recommendations that contradict the stated equity guidelines.

CONTEXT
You will be provided with an Equity Gap Analysis (outlier flags, equity gaps, and risk notes) and Budget Allocation Parameters (total available adjustment budget and any allocation rules).

TASK
For each flagged employee or group, draft a specific compensation adjustment recommendation. Include the rationale linking each recommendation to a benchmark finding or equity gap. Calculate the total cost of all recommendations.

OUTPUT FORMAT
## Recommended Adjustments
| Employee ID | Current Total Comp | Recommended Adjustment | New Total Comp | Rationale Summary | Priority |

Priority values: [Critical | High | Medium | Low]

## Budget Impact
- Total recommended adjustment cost: [amount]
- Available budget: [amount]
- Variance: [amount over/under]

## Rationale Details
For each Critical and High priority adjustment, provide a 2–3 sentence explanation linking the recommendation to specific benchmark or equity findings.

EXAMPLE
| EMP-003 | 85,000 | +8,500 (10%) | 93,500 | Below P25 for role level with Strong performance rating; peer equity gap of 12% vs. comparable employees | Critical |

CONSTRAINTS
Do not recommend adjustments that lack a traceable link to a benchmark comparison or equity gap finding. Do not include cost-of-living or inflation adjustments unless the equity guidelines explicitly require them. Do not round recommendations to create artificial uniformity.

CONTEXT
You will be provided with Draft Adjustment Recommendations (prioritized list with budget impact) and Budget Allocation Parameters (approved budget envelope and allocation rules).

TASK
Review each recommendation against the budget envelope. If total recommendations exceed the budget, suggest prioritized funding scenarios: (1) fund all Critical items only, (2) fund Critical and High items, (3) fund all items. For each scenario, show the total cost and remaining budget.

OUTPUT FORMAT
## Scenario Analysis
For each scenario:
- **Scenario Name**: brief label
- **Included Priorities**: which priority levels are funded
- **Total Cost**: sum of adjustments
- **Budget Remaining**: available budget minus total cost
- **Unfunded Items**: count and total value of deferred adjustments

## Recommended Scenario
One sentence stating which scenario fits within budget while addressing the highest-risk gaps.

CONSTRAINTS
Do not modify individual adjustment amounts — only include or exclude items by priority. Do not create scenarios that exceed the stated budget envelope. Do not recommend splitting individual adjustments across review periods unless budget parameters explicitly allow phased implementation.

CONTEXT
You will be provided with Budget-Validated Recommendations (approved scenario with funded adjustments), the Equity Gap Analysis (outlier flags and equity patterns), and the Benchmark Comparison Matrix (compa-ratios and position vs. range data).

TASK
Compile a Compensation Recommendation Rationale document that presents the final approved adjustments with full supporting evidence. For each adjustment, trace the rationale from the original benchmark comparison through the equity analysis to the final recommendation. Include an executive summary suitable for review by senior leadership.

OUTPUT FORMAT
## Executive Summary
3–5 sentences: total number of adjustments, total cost, key themes (e.g., market realignment, equity correction), and overall budget impact.

## Adjustment Detail
For each approved adjustment:
### [Employee ID] — [Role Level]
- **Current Compensation**: [amount]
- **Recommended Adjustment**: [amount and percentage]
- **New Compensation**: [amount]
- **Benchmark Position**: before and after compa-ratio
- **Rationale**: 2–3 sentences tracing the evidence chain
- **Priority**: [Critical / High / Medium / Low]

## Methodology Note
2–3 sentences describing the approach: data sources used, comparison method, and equity validation applied.

## Appendix References
- Benchmark Comparison Matrix (reference)
- Equity Gap Analysis (reference)
- Budget Allocation Parameters (reference)

CONSTRAINTS
Do not include adjustments that were excluded during budget validation. Do not add qualitative assessments beyond what the data supports. Do not include personally identifiable information — use anonymized employee identifiers throughout.