In the bottom-up approach to compensation budgeting,a budgeted amount is allocated to compensation and given to department managers for distribution to their employees.

Bottom-Up Approach

A strategy in management and decision-making that starts at the lower levels of the organization and moves upward, allowing input from employees at all levels.

Compensation Budgeting

The process of allocating and managing financial resources meant for employee salaries, bonuses, benefits, and other forms of compensation.

Budgeted Amount

The estimated financial spending for specific purposes or projects as planned in a budget over a set period.