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Compensation Management
Compensation Management Overview
Compensation Management Overview
Agora's definitions or Ladders, Levels, Compensation Bands, Payzones, and how to get started.
Maryjane Bates avatar
Written by Maryjane Bates
Updated over a week ago

As part of Agora's Compensation Management tools, companies are able to create their internal career ladders, define levels, and set compensation bands for each level as well as role competencies.

Let's start with a few definitions


Agora defines a Ladder as the leveling structure for a particular job family or function within your organization as your employees develop or progress their skill set. Examples of Ladders might include Account Management, Software Engineering, Project Management, Marketing, etc.

Within Agora, you are able to create as many ladders as you need split out by Individual Contributor ladders and Manager ladders.

Learn more about Creating Ladders in Agora.


A level refers to the level of seniority that someone is at in their career. Your company can calculate levels by factoring in years of experience, competencies, and skill set. Leveling is a straightforward way to delineate payment between employees within similar job roles, but with different levels of experience and expertise.

By default, Agora displays 11 levels (L1-L6 for Individual Contributors, L3-L7 for Managers), but you'll be able to customize if you have a different leveling structure.

Compensation Bands

Compensation bands represent the minimum, target, and maximum salary and equity an employee will receive based on their current level, market rates, and what your company has budgeted for the role.

Each level will typically have a set compensation band for each payzone. Individuals at a certain level will typically be paid somewhere within the compensation band for that level as set by the company.

Learn more about Creating Compensation Bands in Agora.


Some companies may pay employees in certain markets at a premium based on competitiveness of the market or higher cost of living. For example, companies may pay employees living in New York, San Francisco, or Seattle at a higher rate than employees living in other cities. Companies also may choose to do this when operating in multiple countries and thus having Paybands in different currencies.

With Agora, you are able to create different Payzones in order to display changes in compensation band based on location.

Learn more about Creating Payzones in Agora.

Compensation Management Settings

You can easily control the types of compensation you offer within your Agora Compensation Bands. Toggling each component on/off allows you to create Compensation Bands aligned with your compensation structure. The settings are global, meaning that whichever option is selected in Compensation Settings will be reflected across all ladders and bands.

Learn more about Compensation Settings in Agora.

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