Compensation budgeting software built around your strategy.

Manage compensation budgets your way with flexible budgeting tools designed around your organization's unique programs.

From top-down allocations to bottom-up planning, RedCAT Systems lets you establish budgets independently for merit increases, bonuses, promotions, and other compensation programs. Monitor spending in real time, guide manager recommendations, and maintain control throughout your compensation cycle, all within one configurable platform.

RedCAT's salary increase and bonus budget cards lifted out of the planning worksheet, with the caption Budgets in real time: spent and available, as managers plan

Compensation budgeting at a glance.

  • Budget Your Way

    Configure top-down, bottom-up, and program-specific budgeting approaches.

  • Manage Every Program

    Configure distinct budget pools, rules, and allocations for different compensation programs.

  • Stay in Control

    Track spending and identify exceptions as managers make recommendations.

Budget tracking in RedCAT: budgeted, spent, available and overage amounts by program, above a summary by manager with merit overages highlighted

Bring compensation budgets into the planning process.

Compensation budgeting is more than assigning a percentage to a department. Organizations must balance salary increases, bonus awards, promotions, market adjustments, and evolving business priorities, often with different funding approaches for each program.

When budgets are managed separately from compensation planning, it becomes harder to understand how manager recommendations affect available funds and where spending requires attention.

RedCAT connects budgeting directly to compensation decisions. Establish budgets around your organization's programs, configure allocation methodologies, and give managers and administrators visibility into spending as planning progresses.

Whether you're managing a single merit budget or multiple compensation programs across business units, RedCAT helps you simplify administration, maintain oversight, and make confident decisions.

Different programs. Different budgets. Your rules.

Your merit, bonus, promotion, and market adjustment programs don't have to follow the same budgeting approach.

With RedCAT, you can configure budgets independently for each compensation program. Establish top-down allocations, support bottom-up manager recommendations, create separate funding pools, or reserve a portion of your budget through configurable holdbacks.

Control how funds are allocated, reserved, released, and monitored based on your organization's compensation strategy. Whether you're holding back funds for leadership discretion, anticipated promotions, or unexpected needs, RedCAT helps you manage those reserves while maintaining visibility into available spending.

Four programs. Four different budgeting approaches.

Illustrative examples of budgeting configurations, not predefined RedCAT templates.

ConfigurationMeritPromotionsBonusMarket Adjustments
Budget methodologyBottom upSeparate poolPlan specificTop down
Funding approachManager requestsCentralized poolTarget-based fundingDepartment allocation
Spending controlsMerit guidelinesPromotion limitsPayout limitsMarket guidelines
Budget visibilityAllocated vs. proposedPromotion pool usageProposed payoutsRequested adjustments
Budget holdbacksReserve leadership fundsHold for anticipated promotionsReserve discretionary awardsHold for emerging market needs

Compensation budgeting capabilities.

Flexible Budget Allocation

Establish budgets using top-down allocations, bottom-up planning, or other program-specific approaches. Configure how funds are distributed across departments, employee populations, and compensation programs.

Independent Program Budgets

Manage separate funding pools and budget rules for merit, promotions, bonuses, and other compensation programs. Support different allocation methodologies within the same planning cycle.

Real-Time Budget Tracking

Monitor allocated funds, proposed spending, and remaining budgets as managers make compensation recommendations. Give teams current visibility into spending throughout the cycle.

Budget Guardrails & Exception Flags

Configure spending guidelines, limits, and exception flags to identify recommendations that need attention. Support consistent decision-making while allowing flexibility for justified exceptions.

Manager & Leadership Visibility

Give managers, reviewers, and compensation administrators access to budget information relevant to their roles. Help stakeholders understand the financial impact of recommendations before decisions are finalized.

Flexibility When Budgets Change

Support changes to budgets, allocations, and planning requirements as business priorities evolve. RedCAT's configurable technology and experienced team help customers manage changes during an active compensation cycle.

Configurable Budget Holdbacks

Reserve a portion of compensation budgets for leadership discretion, promotions, exceptions, or unexpected needs. Configure holdbacks around your organization's budgeting approach while maintaining visibility into reserved funds and amounts available for manager planning.

Budget Adjustments & Reallocation

Adapt to changing business needs by adjusting budgets, reallocating funds, or releasing reserved amounts as planning progresses. Maintain oversight of budget changes throughout the compensation cycle.

Compensation budgets should work the way you do.

See how RedCAT supports your organization's unique budgeting requirements.

From budget strategy to final outcomes.

  1. Establish Your Budget Strategy

    Define budgeting methodologies, funding pools, allocation rules, and spending controls for each compensation program.

  2. Configure Allocations & Visibility

    Distribute budgets across relevant departments or employee populations and establish the information available to managers and reviewers.

  3. Monitor Recommendations

    Track proposed salary increases, bonuses, and other compensation awards against available budgets as planning progresses.

  4. Review Spending & Exceptions

    Identify potential budget issues, review recommendations, and adjust allocations or decisions as needed.

  5. Finalize Budget Outcomes

    Review final spending, confirm approved compensation decisions, and prepare budget information for downstream reporting and future planning.

Better budget visibility. Better decisions.

A compensation budget is most valuable when the people making pay decisions can see how their recommendations affect it.

RedCAT brings budget visibility directly into the planning experience, helping managers and compensation administrators make informed decisions without relying on disconnected spreadsheets or delayed reports.

  • See the impact of every recommendation

    Give managers visibility into proposed spending and available funds as they make salary increase, bonus, and other compensation recommendations.

  • Identify issues before they become problems

    Use configurable guidelines and exception flags to highlight recommendations that may exceed available budgets or require additional review.

  • Maintain control as priorities change

    Organizational changes, revised funding, and shifting business needs don't have to derail your compensation cycle. RedCAT's flexible platform and experienced team help you adapt while maintaining oversight of spending and decisions.

Trusted by teams managing real-world compensation complexity.

Compensation teams need more than a budget spreadsheet. They need the flexibility to manage different programs, clear visibility into spending, and a partner who understands the challenges of an active compensation cycle.

See how organizations rely on RedCAT's configurable technology and experienced team to support their compensation strategies.

Frequently asked questions.

What is compensation budgeting software?

Compensation budgeting software helps organizations establish, allocate, monitor, and control funds for salary increases, bonuses, promotions, and other compensation programs. RedCAT integrates budgeting with compensation planning so teams can track recommendations and manage spending throughout the cycle.

Does RedCAT support both top-down and bottom-up budgeting?

Yes. RedCAT supports configurable budgeting methodologies, including top-down allocations and bottom-up planning. Organizations can use different approaches for different compensation programs based on their needs.

Can we manage separate budgets for merit, bonuses, and promotions?

Yes. RedCAT allows organizations to configure independent budgets and funding approaches for different compensation programs. This can include separate pools, allocation rules, spending guidelines, and budget visibility.

Can managers see how their recommendations affect their budgets?

Yes. RedCAT provides budget information within the compensation planning experience so managers can monitor proposed spending and remaining funds as they make recommendations.

Can budgets change during an active compensation planning cycle?

RedCAT's configurable platform is designed to support changing compensation requirements, including budget adjustments and organizational updates. The RedCAT team can help customers evaluate and implement changes based on their specific requirements and cycle timing.

Can RedCAT support compensation budget holdbacks?

Yes. RedCAT supports configurable budget holdbacks, allowing organizations to reserve a portion of their compensation budgets for specific purposes, such as leadership discretion, promotions, or unexpected compensation needs. Holdbacks can be incorporated into the budgeting process to help teams manage reserved funds and available spending throughout the planning cycle.

Your budgets. Your way.

From straightforward merit allocations to complex compensation funding strategies, RedCAT gives you the flexibility to manage budgets around your organization's needs.

See how configurable compensation budgeting software can bring greater visibility, control, and confidence to your next planning cycle.