Overview

When requesting a headcount in TeamOhana, you’ll enter compensation details such as Target Base, bonus, commission, and equity. A common question is how these values relate to Target Compensation and Budgeted Compensation, and what happens to them as the request moves through approval.

This article explains how these fields work together at each stage of the process.

Key Definitions

• Target Base
  The intended base salary for the role.

• Target Compensation
  The full intended compensation package, which may include base, bonus, commission, and equity.

• Budgeted Compensation
  The approved and financially committed compensation for the role.

How the Fields Work by Approval Stage

Before Approval

• The Target Base and other compensation inputs represent the target compensation for the role.

• At this stage, all values are proposed and can be adjusted as needed.

Upon Approval

• When the headcount is approved, the target compensation becomes the budgeted compensation.

• At the moment of approval:

  • Target and budgeted values are identical.

  • There is no variance between them.

After Approval

• Budgeted Compensation is locked and represents the approved financial commitment.

• Only Finance can modify budgeted values if changes are required.

• You may still update Target Compensation, but:

  • These updates affect target values only.

  • Budgeted compensation remains unchanged.

This allows teams to track differences between the original approved budget and any updated target compensation over time.

Why This Matters

This approach:

• Maintains strong financial controls

• Preserves an accurate approved budget

• Allows flexibility to adjust targets without impacting the approved budget

• Enables visibility into variances between budgeted and target compensation

If you have questions about how this applies to a specific headcount or scenario, feel free to reach out to our Support team at support@teamohana.com