Future modeling overview

Employees make better career and financial decisions when they understand how their compensation might grow over time. Future modeling tools help employees visualize their potential earnings trajectory, plan for major life events, and feel confident in their total compensation package.

Total Rewards offers two complementary approaches to future visibility: refresh programs (guaranteed future equity your organization has committed to) and the compensation simulator (exploratory modeling for career planning). You can enable both features simultaneously to provide transparency about committed compensation while empowering employees to explore growth scenarios.

Configuration guides:

• Refresh programs configuration guide →
• Compensation simulator configuration guide →

Why employees need future visibility

Employees want to answer questions like:

• Career planning: "If I get promoted next year, how will that affect my total compensation?"
• Retention decisions: "How much equity am I scheduled to receive over the next few years if I stay?"
• Financial planning: "What will my compensation look like when I'm planning major purchases or family changes?"
• Offer evaluation: "How does my current compensation trajectory compare to opportunities elsewhere?"

Without visibility into future compensation, employees make decisions based on incomplete information. They may undervalue their total compensation package, feel uncertain about their career trajectory, or leave without realizing equity refreshes were coming.

Future modeling addresses this by making future compensation concrete and actionable.

Which tool solves which employee need?

Refresh programs: Building trust through guaranteed visibility

The employee need: "I want to know what equity my company has committed to giving me so I can plan confidently and understand my full compensation package."

Employees often don't realize that equity compensation extends beyond their new hire grant. Without proactive communication, they may leave right before a scheduled refresh or undervalue their total package because future grants feel uncertain.

How refresh programs solve this: Refresh programs display upcoming equity grants directly in the employee's Total Rewards portal on the main compensation overview page. These aren't hypothetical—they're based on your organization's actual refresh policy. When an employee sees "Biennial Refresh Grant: $50,000 vesting starting January 15, 2026," they understand this is part of their total compensation package.

What it shows:

• Specific upcoming refresh grants based on your refresh policy
• Pre-calculated grant values and vesting schedules
• Program education explaining your refresh equity philosophy

Example: Your company has a biennial refresh policy where employees receive equity refreshes every 2 years after their start date. An employee hired on January 15, 2024 sees a future grant scheduled for January 15, 2026 with a calculated value of $50,000 (30% of their new hire grant based on their band). This visibility helps them understand the value of staying through that vesting period.

When to use this: Use refresh programs when your organization has predictable, policy-driven equity refresh cycles that you're comfortable communicating to employees as guaranteed or highly expected compensation.

Compensation simulator: Empowering career planning exploration

The employee need: "I want to model different career scenarios to understand how raises, promotions, and additional equity might affect my total compensation over time."

Even when employees understand their current compensation, they need tools to explore future growth. Questions like "Should I prioritize promotion this year or next?" or "How much will my total comp grow if I receive merit raises every 18 months?" require interactive modeling.

How the simulator solves this: The compensation simulator is an interactive tool where employees build their own scenarios by adding events like promotions, raises, and equity refreshes. It lives on a separate page (accessed from the Tools menu) and provides an exploratory environment where employees can answer "what-if" questions without any commitment from the organization.

What it shows:

• Interactive timeline where employees add equity refreshes, raises, and promotions
• Total compensation projections over time based on events they add
• Configurable time horizon (default 5 years, up to 10 years)
• Chart visualization showing how different events compound over time

Example: An employee opens the compensation simulator to model "What if I get promoted next year and receive a merit raise in 18 months?" They add a promotion event in 2027 (which increases their base salary by the configured percentage) and a raise event in mid-2028. The chart shows their total compensation trajectory with both events applied, helping them visualize the financial impact of career growth.

When to use this: Use the compensation simulator when you want employees to explore realistic career scenarios based on your compensation philosophy without committing to specific amounts. This is especially valuable when actual grant amounts vary by performance or market conditions.

Using both features together

Many organizations enable both features to address different employee needs simultaneously.

Example workflow:

1. An employee opens their Total Rewards portal and sees a refresh program grant: "Biennial Refresh Grant: $50,000 vesting starting January 15, 2026"
2. This guaranteed grant answers the question "What is my company committed to giving me?"
3. The employee clicks "Model compensation with Biennial Refresh Grant" which opens the compensation simulator with that grant pre-loaded
4. They add additional events—a potential promotion in 2027 and merit raises in 2028 and 2029—to explore "What could my total compensation look like if I continue to grow?"
5. The simulator shows the guaranteed grant plus exploratory scenarios, empowering the employee to plan their career trajectory

When both are enabled:

• Refresh program grants appear in the portal and automatically populate the simulator when clicked
• Employees can add additional simulator events (raises, promotions, extra equity) on top of guaranteed refreshes
• This combination provides certainty (what's guaranteed) alongside exploration (what's possible)

How employees interact with each tool

Refresh programs in the portal

Refresh programs appear as future equity items in the employee's main compensation view. They display:

• Grant name (for example, "Biennial Refresh Grant")
• Equity type (RSU, stock options, etc.)
• Projected grant value
• Vesting start date
• Program description explaining how the refresh works

Opening the simulator from a refresh program: Below the grant description, employees see a button "Model compensation with [grant name]" which opens the compensation simulator with that grant pre-loaded as a starting point for additional scenario modeling. This button only appears for refresh programs configured with both portal visibility and simulator availability (both isForPortal: true and isForCompSimulator: true flags enabled).

Compensation simulator as a tool

The compensation simulator appears in the Tools section of the Total Rewards portal menu. The Tools section only displays if at least one tool is available—if no compensation simulator events are configured (no equity, raise, or promotion configs with isForCompSimulator: true), the Tools section won't appear.

Visibility: Only current employees can access the compensation simulator. Candidates (offer letter recipients) cannot access future modeling features.

When employees open the simulator, they navigate to a dedicated page where they can:

1. View their current compensation as the baseline
2. Add events from the sidebar (equity, raises, promotions you've configured)
3. Adjust the time horizon (default 5 years, up to 10 years)
4. See the total compensation chart update in real time
5. Toggle equity valuation assumptions (if they have existing equity)

Session-based modeling: The simulator remembers events employees add during their session but doesn't save them permanently. Each visit starts fresh, allowing employees to explore different scenarios without committing to any specific path.

Configuration: Building the right experience for your employees

Both features are configured in Settings > Communicate > Future Modeling. Your configuration choices determine what employees can see and model.

See the refresh programs configuration guide and compensation simulator configuration guide for detailed setup instructions.

Refresh programs configuration

Purpose: Create equity refresh policies that appear directly in employee portals as guaranteed or expected future compensation.

Configure in Settings > Communicate > Future Modeling > Refresh Programs.

Key settings:

• Name: What employees see in their portal (for example, "Annual Refresh Grant")
• Equity type: RSU, stock options, or other equity instruments
• Award cadence: How often grants are awarded (for example, every 2 years)
• Minimum tenure: How long employees must be with the company before receiving refreshes
• Grant calculation: Base it on new hire grant value, base salary, or refresh target field, with a percentage modifier
• Vesting schedule: How the grants vest over time (cliff, duration, interval)
• Filtering rules: Apply different grant amounts by level, country, or specific employees
• Guaranteed flag: Mark variants as guaranteed or not (controls messaging to employees)

Dual-purpose configuration: A single configuration can serve both the portal and the simulator by enabling both isForPortal: true (appears in portal) and isForCompSimulator: true (available in simulator). This lets employees see their guaranteed grant in the portal and then model additional scenarios on top of it in the simulator.

Compensation simulator configuration

Purpose: Configure event templates that employees can use to explore career growth scenarios.

Configure in Settings > Communicate > Future Modeling > Comp Simulator.

Three event types employees can model:

1. Equity refreshes:
   • Similar configuration to refresh programs (cadence, tenure, calculation, vesting)
   • Employees manually add these to their timeline to model potential future grants
   • Not guaranteed—these represent possible scenarios
   • Marked with isForCompSimulator: true (only)
2. Raises:
   • Percentage increase applied to base salary
   • Cadence (how often raises typically happen in your organization)
   • Description explaining your merit philosophy
3. Promotions:
   • Percentage increase applied to base salary (typically larger than raises)
   • Cadence (how often promotions typically happen)
   • Description explaining promotion expectations and typical timelines

Important distinction: Events in the compensation simulator are templates that employees use to build hypothetical scenarios. They're not promises of specific future compensation—they represent typical patterns based on your compensation philosophy.

[Screenshot: Settings page showing the Refresh Programs tab and Comp Simulator tab side-by-side, highlighting how the same configuration form is used but with different purposes]

Decision guide: Which tool meets your organization's goals?

Use refresh programs when your goals are:

Building trust through transparency:

• You want employees to see the full value of their compensation package, including future equity
• You're comfortable proactively communicating upcoming grants as committed compensation
• You want to reduce uncertainty about future equity and improve retention

Your refresh program is predictable:

• You have policy-driven equity refresh cycles (annual, biennial, etc.)
• Grant amounts follow clear rules based on bands, base salary, or refresh targets
• You want to show individualized grant values directly in the portal

Example use case: A tech company with a biennial refresh policy wants employees to understand that equity compensation continues beyond the new hire grant. They configure refresh programs showing "Your next refresh grant: $50,000, vesting starting January 15, 2026" directly in each employee's portal.

Use compensation simulator when your goals are:

Empowering career planning:

• You want employees to model different career growth trajectories
• You want to educate employees about how raises, promotions, and equity compound over time
• You want to provide exploration tools without committing to specific amounts

Your compensation varies by performance:

• Your compensation philosophy is clear, but actual amounts depend on performance reviews
• You want to show the impact of different career paths without making guarantees
• You want employees to answer "what-if" questions about their financial future

Example use case: A growth-stage company wants employees to understand career growth potential without guaranteeing specific amounts. They configure the simulator with typical raise percentages (3–5%), promotion increases (10–15%), and potential equity refreshes so employees can model various career trajectories.

Use both features together when:

You want to provide certainty (guaranteed refreshes in the portal) alongside exploration (career modeling in the simulator).

Example workflow:

• An employee sees their guaranteed biennial refresh grant in the portal: $50,000 vesting in 2026
• They click "Model compensation with Biennial Refresh Grant" to explore additional scenarios
• The simulator pre-loads the guaranteed grant, and the employee adds hypothetical promotions and raises
• Result: The employee understands what's guaranteed while exploring potential growth paths

When both are enabled:

• Refresh program grants appear in the portal and can be opened in the simulator
• Employees can add additional simulator events (raises, promotions, extra equity) on top of guaranteed refreshes
• This combination addresses both retention (showing committed equity) and career development (exploring growth)

Access and permissions

Entitlements:

• Total Rewards OR Visual Offer Letter entitlement required for the company

Employee permissions:

• Requires totalRewards.futureModeling view permission
• Only current employees can access future modeling features
• Candidates (offer letter recipients) cannot access refresh programs or the compensation simulator

Admin permissions:

• Requires settings.communicate.configs edit permission to configure refresh programs and simulator events

Visibility rules:

• Refresh programs: Appear in the portal if isForPortal: true and the employee matches filtering rules (level, country, or email)
• Compensation simulator: The Tools menu option only appears if at least one event configuration (equity, raise, or promotion) has isForCompSimulator: true enabled. If no simulator events are configured, the Tools section won't display the simulator link.

Technical details

Multiplier bases for grant calculation

Grant values can be calculated based on three multiplier bases:

• newHireGrant (New hire grant target): Uses the employee's band data if they're matched to a band in Market Pricing. Useful when refresh amounts should scale with the original equity grant value.
• baseSalary (Base salary): Uses the employee's current base salary. Useful when equity refreshes should scale with cash compensation.
• refreshTarget (Refresh target field): Uses a custom field in the employee's job metadata. Useful when you store specific refresh targets separately from compensation data.

Flags controlling visibility and behavior

Configurations use two boolean flags:

• isForPortal: true — Grant appears directly in the employee's Total Rewards portal as a future equity item
• isForCompSimulator: true — Event template is available for employees to add in the compensation simulator

Dual-purpose configuration: Both flags can be enabled on a single configuration, allowing the grant to appear in the portal and be available in the simulator for additional modeling.

Session persistence

Refresh programs: Always visible in the portal. Employee data is queried on page load based on filtering rules.

Compensation simulator: Session-based. Events employees add are stored in browser state during the session but are not persisted to the database. Each simulator visit starts fresh with no saved scenarios.

Configuration best practices

For detailed step-by-step instructions, see the refresh programs configuration guide and compensation simulator configuration guide.

Keep naming consistent to reduce employee confusion

If you create an equity refresh program for the portal and a similar event in the simulator, use consistent naming and descriptions. This helps employees understand the relationship between guaranteed grants and modeling scenarios.

Example:

• Portal refresh program: "Biennial Refresh Grant - Guaranteed equity refreshes every 2 years based on your new hire grant"
• Simulator event: "Additional Refresh Grant - Model potential off-cycle or performance-based refreshes"

Consistent language reinforces which events are committed versus exploratory.

Set realistic cadences that match your actual practices

Both features use award cadence (how often grants/raises/promotions happen). Set cadences that reflect your organization's actual compensation practices—not aspirational timelines.

Why this matters: If promotions typically happen every 3–4 years in your organization but the simulator shows a 1-year cadence, employees may build unrealistic expectations. Similarly, if merit raises happen every 18 months but the simulator suggests annual raises, employees may feel disappointed when their actual trajectory doesn't match the model.

Use filtering strategically

Both features support filtering by level, country, or email.

For refresh programs: Use filters to show accurate grant values by segment. For example, IC5 employees might receive 30% of their new hire grant while IC6 employees receive 40%. This ensures each employee sees individualized, accurate information.

For simulator events: Use broader filters or no filters at all if you want all employees to model the same scenarios. The simulator is exploratory, so segment-specific filtering is less critical unless compensation philosophy varies significantly by level or geography.

Explain the difference when enabling both features

If you enable both refresh programs and the compensation simulator, add clear messaging to help employees understand which grants are guaranteed versus which are for modeling.

Example refresh program description: "This is a guaranteed refresh grant based on your tenure and performance. You'll receive this equity as part of your total compensation package. To explore additional career scenarios (promotions, merit raises, or off-cycle grants), visit the Compensation Simulator in the Tools menu."

This sets appropriate expectations and encourages employees to use both tools for different purposes.

Integration with other Pave features

Future modeling pulls from and integrates with several other Pave systems:

Market Pricing bands

Grant values can be calculated as a percentage of the employee's band target when using the newHireGrant multiplier base. This requires the employee to be matched to a band in Market Pricing. This integration ensures equity refreshes scale appropriately with role leveling and market positioning.

Compensation data

• Base salary: Grant values can be calculated as a percentage of the employee's current base salary using the baseSalary multiplier base
• Custom refresh targets: Organizations can store specific refresh target values in employee job metadata and reference them using the refreshTarget multiplier base
• Current total compensation: The compensation simulator uses the employee's current total comp as the baseline for all future projections

Vesting schedules

Both refresh programs and simulator equity events use the same vesting configuration system:

• Cliff length: Initial period before any equity vests
• Duration: Total time over which the grant vests
• Interval: How frequently vesting occurs (monthly, quarterly, annually)
• Vesting calendar: Optional custom vesting dates for non-standard schedules

Equity valuation

The compensation simulator uses the same equity valuation logic as the main Total Rewards portal—either the latest 409A price or a configured price per share. This ensures consistency across all compensation visibility tools.