more-arw search

Q&A Forum

Managing Department Personnel Costs

How does your company manage situations like this -

An employee with a salary of 125K leaves the IT department and is replaced by an employee making 80K. Do you have a process that puts the difference of 45K into a bucket that becomes available for the CIO to use in the future to adjust other salaries?

Or if the same department was given a Promotion/Equity pool of dollars but it was not used, is there a process to bank that money for future use by that department?

Thank you for your feedback.


Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

The answer is yes and no. It all depends on your company, the budget process, the current financial position, and lastly the culture.

In a perfect world (or at least my perfect world) the CIO would have that money to spend on salaries (bonuses would need further approval, as would raises). So, if they were able to hire someone for let's say 40K, that would essentially cover the spread plus benefits...

Products and Companies

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.