Compensation Letters: Part 2 – Compensation Review Letters

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This article is written to provide you with a high-level understanding of the compensation review letter and provides a template and example of what the letter would generally look like completed.

Compensation Review Letters are provided to employees to inform them of the changes made to their annual base salary / hourly wage rate with an effective date. In addition to communicating changes made to the employees’ compensation, this letter should include:

    • any changes made to the employee’s compensation incentive plan(s)
    • the employee’s performance review score
    • the employee’s compensation incentive plan(s) payouts
    • a positive message about their dedication and hard work with the company
    • disclaimer to not discuss their compensation with other employees
    • contact their immediate supervisor or human resources if they have any questions

Download our Compensation Review Letter Template. Over the next 2 parts we will be breaking down each letter further and providing templates to use, with an example letter. Look for Part 3 – Salary Increase Letters.

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Visit our Resource Library for all available downloads.

If you require assistance with any of the guides, forms or templates, please contact a BIG representative.

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