Performance and compensation are often managed as separate processes — but they’re most effective when treated as one.

A clear compensation strategy doesn’t just attract and retain talent. It defines salary structures, promotes pay equity, and sets expectations for what gets rewarded. When that structure is tied to employee performance, Compensation Reviews become more objective, consistent, and impactful.

Performance management is about helping people improve and grow. It highlights strengths and gaps, guides development, and provides the data needed to inform fair compensation decisions.

But unless compensation and performance are connected, reviews can feel arbitrary. Employees don’t just want feedback — they want to understand how that feedback influences their pay.

Why Linking Pay for Performance to Compensation Reviews Matters

Connecting compensation to performance helps:

• Motivate employees by rewarding impact
• Build trust through transparent, fair pay practices
• Ensure compensation investments support business goals
• Give managers clear, structured guidance during Compensation Reviews

Instead of two disconnected efforts, you get one aligned process — grounded in data, not guesswork.

Automating Pay-for-Performance Compensation Reviews with Kamsa

Kamsa’s compensation platform makes it easy to tie performance directly into Compensation Reviews.

Whether you use rating scales, qualitative feedback, or another approach, Kamsa lets you:

• Import employee performance ratings
• Benchmark compensation using real-time market data
• Automatically calculate salary increases based on performance and market position
• Plan and budget without spreadsheets

Our budgeting tool helps you make performance-based pay decisions that are clear, consistent, and backed by data.

One System, Not Two

Performance management helps you identify and grow top talent. Compensation Reviews are where those insights should directly influence pay.

Kamsa connects the two — so your compensation decisions reflect actual performance, and your people know how their contributions are valued.

Learn more about how Kamsa’s job leveling supports fair pay practices across the organization.

Read more about automating Compensation Reviews through Kamsa →