Merit cycles, also known as focal reviews, are pivotal events in the HR calendar that determine compensation and promotion adjustments for employees. As a people manager and team leader, they were often the bane of my existence—for reasons I’ll get to later. Now, as the co-founder of a compensation software company, I understand that the difficulties and headaches of these crucial pieces of people operations run that much deeper for HR professionals.
These cycles are typically conducted annually or semi-annually, following a performance review process. They encompass various elements such as promotions, merit changes, market adjustments, equity grants, and bonuses, making them a crucial aspect of talent management. But, for as crucial as they are, they are still a massive lift and largely still done manually.
So, if they’re such a headache, are they even worth the work? I’ll break down why merit cycles matter, why they’re hard, and—because this is our platform so a plug is totally shameless—what CandorIQ is doing about it.
At CandorIQ, we understand the challenges of managing merit cycles and offer solutions to streamline the process. Our platform automates workflows, provides data and insights for informed decision-making, and facilitates real-time collaboration among stakeholders. By leveraging automation and intelligent recommendations, CandorIQ helps organizations ensure that merit cycles are efficient, transparent, and aligned with their strategic objectives.
While merit cycles are essential for talent management, they come with their own set of challenges. By leveraging technology and best practices, organizations can navigate these challenges more effectively and ensure that their merit cycles contribute to a motivated, engaged, and high-performing workforce.