Pay structure and merit kit

Compensation Toolkit

Build a defensible pay structure and run a merit cycle against a budget, with the two tools large companies use to do both: set one market anchor and the Salary Band Builder builds your grades and places your people, then the Merit Increase Matrix turns performance and range position into a recommended raise and holds the plan to the budget you have.

$89USD

One-time purchase, no subscription. Instant download.

Built by expert HR practitioners and leaders

  • The Salary Band Builder (Excel, 6 tabs): set your Grade 1 midpoint from a market source, pick a progression and a spread, and the grades build with a minimum, midpoint, and maximum, with placement, summary, and benchmark tabs behind the structure
  • The Merit Increase Matrix (Excel, 7 tabs): set increase percentages by performance and range position with your cut points, enter your people, and each raise computes with the blended increase footed for you
  • A Budget Scenario that holds the line: the plan priced against the merit budget you have, with the headroom and the scale factor that brings an over-budget plan back inside it
  • A PDF guide with each tool: what it is, how to use it, the color key, and the limits, the piece the standalone calculators do not include
  • A single Start Here: the order to work in, so the structure you build feeds the raises you plan

The toolkit structures the bands and the plan. It does not include market salary data, and it does not decide whether your pay is equitable or lawful; bring the survey data, run a pay-equity review, and confirm against applicable law before you finalize.

One-time purchase Instant download Editable files 14-day guarantee

Two Excel workbooks with PDF guides and general business information, not legal or tax advice. The tools do not include market salary data, pay decisions carry legal and equity weight, and pay rules vary by location and change over time, so bring your own survey data, run a pay-equity review, and confirm figures against current data and applicable law before you finalize anything.

Last reviewed June 2026

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What you get

Two tools, each with a guide, that cover the bands and the merit budget

A Start Here sets the order, and each tool pairs an Excel workbook with a PDF guide and opens on a worked example. Build the structure first, then spend the budget against it.

PDFStart here

Start Here

A one-page map for the toolkit: confirm your market anchor, build the bands, place your people, then size the raises against the budget, with the order stated so the structure you build feeds the plan you price.

PDFRead first

Salary Band Builder Guide

What the tool is, how to use it in three steps, the amber-and-white color key, and the limits, with the scope box and the review date on page one, so anyone you hand the workbook to can run it.

XLSXExcel

Salary Band Builder (6 tabs)

Set the Grade 1 midpoint, the progression, and the spread, and the grades build with a minimum, midpoint, and maximum; the Employee Placement tab returns each compa-ratio, range penetration, and status, a Summary rolls it up, and a Benchmark shows the settings other employers use. Works in Excel or Google Sheets and opens on a worked example.

PDFRead first

Merit Increase Matrix Guide

The same treatment for the merit tool: what it is, the three steps to a priced plan, the color key, and the limits, dated and ready to hand to whoever runs the cycle.

XLSXExcel

Merit Increase Matrix (7 tabs)

Set your increase percentages and cut points on the matrix, enter your people on the planning tab, and each raise computes with the blended increase; the Budget Scenario holds the plan to your target with the headroom and the scale factor. Works in Excel or Google Sheets and opens on a worked example.

How it works

The order to work in

Build the structure first, place your people, then size the raises against the budget. Three steps, two workbooks, one system.

STEP 01

Build the bands

In the Salary Band Builder, set your Grade 1 midpoint from a salary survey, then choose a midpoint progression and a range spread, and the grades and ranges build for you, with the overlap computed between each grade.

STEP 02

Place your people

Enter each person's grade and salary on the Employee Placement tab to see their compa-ratio, range penetration, and whether they sit below, within, or above their range, then read the Summary for the one-page view.

STEP 03

Size the raises

Open the Merit Increase Matrix, set your increase percentages and cut points, enter your people, and use the Budget Scenario tab to hold the plan to the merit budget you have.

The standard

Built on standard formulas and honest about its limits

Compa-ratio, range penetration, midpoint progression, and a merit matrix are the formulas large employers run; the toolkit builds them in open workbooks you can read. It gives you a grounded structure and a budgeted plan. It does not supply the market data, and it does not decide whether your pay is equitable or lawful.

Most structures land in a known band: a midpoint progression of 5 to 15 percent from admin grades to management, a range spread of 30 to 50 percent from support roles to leadership, and wider ranges as grades rise. On the merit side, 2026 budgets run about 3.2 percent with total increases near 3.5 percent, the third straight mid-3 year. Set your own anchor and targets; the toolkit does the arithmetic and shows you the trade-offs.
One anchor, then arithmetic. The Grade 1 midpoint is the only market number the structure needs; the progression and the spread build everything above it. Anchor it to a salary survey at the percentile you target, not to what you happen to pay today.
The matrix beats the across-the-board raise. A flat percent overpays the top of the range and under-rewards strong performers near the bottom. Performance rows and position cut points spend the same budget where it retains.
The scale factor keeps you honest. When the plan prices over budget, multiply every matrix cell by the factor instead of hand-trimming favorites; the differentiation survives and the total lands inside the target.
Is this for you

Who it is built for

Who the toolkit fits, and where to go if your need is something else.

Built for

  • An HR or total-rewards owner setting up a first real pay structure, who wants grades and ranges grounded in a market anchor rather than guesswork.
  • A manager or finance partner running the annual merit cycle, who needs each raise and the budget roll-up in one place.
  • A founder formalizing pay as the company grows beyond ad-hoc offers.

If you’re looking for

Questions

Before you buy

What format is it and can I edit it?
Two Excel workbooks that also work in Google Sheets, each with a PDF guide and a single Start Here. Every input and formula is editable, the amber cells mark what you change, and the files are yours to keep.
Is this legal advice?
No. These are practical compensation tools and general business information, not legal or tax advice. Pay decisions carry legal and equity weight, so review your structure and your raises against applicable law, and bring in qualified help for the close calls.
Does it include salary market data?
No. You bring the market data from a salary survey and set your anchor from it, usually the market median, or a higher percentile for scarce skills. The tools build the structure around the number you provide, and they tell you that plainly.
How is this different from buying the two tools separately?
It is the same Salary Band Builder and Merit Increase Matrix, bundled with both PDF guides and a single Start Here so the structure you build feeds the raises you plan. Buy the toolkit if you want both tools with the guides; buy either tool on its own if you only need one.
What is the refund policy?
Digital products are covered by a 14-day money-back guarantee. See the refund policy for the full terms.
What happens after I buy?
Checkout delivers an instant download link, and a receipt with the same link arrives by email. Open the Start Here first; it sets the order to work in. If a file gives you trouble, email support@truestephr.com.
Can I expense this purchase to my business?

Most customers buy TrueStep HR tools for business use, and a tool you use for work often qualifies as a deductible business expense. Whether it does for you depends on your situation, so confirm with your accountant or tax professional. Your receipt arrives by email at checkout and works as documentation.

Free guide

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A five-minute screen that catches the most common and most expensive people-decision mistakes before they happen. Free PDF, sent to your inbox. Unsubscribe anytime.

Get the kit

Build the structure once, then run every cycle against it

Set one market anchor, let the grades build, place your people, and size every raise from the matrix with the budget held, in two workbooks you keep, each with its guide.

$89
One-time purchase, no subscription

Compensation workbooks and guides, not legal or tax advice. Last reviewed June 2026.