# Compensation Change Workflow — a worked spec

_By Sandhiya Thiruvengadam · Global People Labs · for HR leaders_

The most sensitive build, so the spec is mostly guardrails. The AI is the rails; the approval and the payroll write stay human. Start with a spec, not a prompt.

## How it works today

A manager requests a comp change for one of their reports (for example, a bonus from 5% to 10%). It goes through an approval (may be modified to 8%, or rejected). The approved figure is entered into a payroll-input sheet. HR ops copies it into the payroll system on the weekly run. Today HR ops goes with the number in the sheet, with no cross-check.

## The spec

| Line | What it says |
|---|---|
| **SPEC** | Move an approved comp change from a manager's request into payroll, with approval as a hard gate, a full audit trail, and row-level access so each manager sees only their own people. |
| **INPUT** | A request sheet: employee, manager, current base and bonus, the requested change, reason, date. Each manager enters and sees only their own reports. |
| **TRIGGER** | A manager submits a request, which routes to the approver. Cadence: HR ops processes the approved batch on the weekly payroll run. |
| **OUTPUT** | Request routed to the approver with policy context. Decision recorded with who and when. On approval the approved figure lands in a payroll-input sheet with an approval reference. HR ops updates payroll from that verified entry. A Slack notification fires once applied. An audit line at every step. |
| **INSTRUCTIONS** | Approval is a hard gate. The number in payroll equals the approved figure, never the requested one. Flag anything outside band or budget. One open request per employee. |
| **KNOWLEDGE** | Comp policy, bands and budget; the approval matrix; current comp, read only. |
| **MEMORY** | Done = approved figure in payroll, matching the approval, logged. Hold each request's state so nothing is double-entered or lost. |
| **CONTEXT** | Who reports to whom (row-level access); the payroll run date; budget remaining; the approver for this band. |
| **TOOLS** | May read comp and policy; write the request and payroll-input sheets (approved figure only); notify approver, HR ops, manager. May not write the payroll system of record. May not show one manager another manager's rows. |
| **DONE** | Every approved change reaches payroll exactly as approved, within the week; fully traceable; no unapproved change ever appears. |
| **NOT ALLOWED** | A manager seeing or editing another manager's people. Pushing an unapproved or different number to payroll. Exposing comp beyond approvers and HR ops. Auto-writing to the payroll system. Comp is RESTRICTED. |

## What to strengthen (the gaps to close)

1. **Close the "HR ops goes with the word" gap.** Every payroll row carries an approval reference; HR ops verifies against the approval, not the manager's word.
2. **Separate duties.** On approval the system writes the approved number, so the manager never re-types or alters it.
3. **Define approval authority.** Who signs off at what level (over 10% or above band needs the HR head).
4. **Tamper-evident audit trail.** Sheets are editable; comp needs a locked who/what/when/approved-by record.
5. **Effective date and the reject path.** Which run, any retro pay, and how the manager hears "8%, not 10%".

## The one rule

The AI never approves and never writes to payroll. For compensation, the guardrails are the build. The AI carries the request, checks the band, records the approval, keeps the audit trail, enforces who-sees-what, and sends the live notification. People keep the decisions.