Compensation planning and awarding process overview
| Step | Task | Description | Who? | Reference |
|---|---|---|---|---|
| 1 | Define planning rules |
Planning rules define calculation rules, guidelines, approval rules, and validation rules for a specific type of award. A planning rule also determines what the manager can see or do when making awards. Planning rules are used to create budget amounts calculated according to the budget calculation rules included on the planning rule. Note: Market adjustment planning rules are a specific type of
salary-type planning rules and are processed differently.
Equity-type planning rules are used to create budget equity awards in form of units or amounts that are calculated according to the budget calculation rules included on the planning rule. Note: Equity awards can also be created on a one-off basis,
without defining any planning rules.
Bonus-type planning rules are used to create bonus awards. These awards are calculated according to the budget calculation rules that are included on the planning rule. Or, they are calculated according to the payout rules that are associated with a bonus award pay component. Managers can award the payout bonus amount or a multiplier of the budgeted bonus amount. When your rule is complete, change its status to Final. |
Compensation analyst |
Defining budget calculations for planning rules Defining guidelines for planning rules |
| 2 | Optionally, if lump sum awards are available for the planning rule, then define the lump sum rules |
Lump sum awards are lump sum amounts for resources on top of their salary range. Lump sum rules are ignored for resources that do not have a salary structures. Note: Lump sum rules are not used for market adjustment
planning rules, bonus rules, or equity-type planning rules.
There are five types of lump sum payments. When your rule is complete, change its status to Final. |
Compensation analyst |
Defining lump sum payments (flat amounts) for planning rules Defining lump sum payments (percent of base pay rate) Defining flat amounts entered by managers |
| 3 | Define a compensation awarding view |
In one awarding view, you can include up to two salary-type planning rules, up to two equity-type planning rules, and one bonus-type planning rule in any combination. However, a compensation awarding view must include at a minimum one planning rule, with a maximum of three planning rules. The salary-type planning rules are processed in the order that you place them on the compensation awarding view. The order of the equity-type planning rules does not matter. You can also specify rules to assign budget owners other than the direct supervisors to the budgets created by the budget calculations. When your compensation awarding view is complete and you are ready to calculate budget amounts, change its status to Final. Note: A compensation awarding view and the rules it contains
must have a status of Final for budgets to be calculated for the compensation
awarding view.
|
Compensation analyst | Defining compensation awarding views |
| 4 | Create budget records |
You can calculate budgets for a compensation awarding view and an eligibility group. The budget calculations create resource budgets for each resource in the eligibility group and for each rule in the compensation awarding view. Budget calculations include adjustments to FTE, annualized calculations, and percent increase calculations. If "Default Budget Amount" is selected for the rule, then the calculated amounts default in the awarded amounts fields on the manager's compensation awarding form. Optionally, you can add a resource record to a compensation awarding view manually. You can then assign an increase percentage to each planning rule that is included in the compensation awarding view. This is meant to be a one-time procedure. |
Compensation analyst | |
| 5 | Make budgets available to owners | The compensation analysts can make changes to the budgets before making them available to budget owners in Manager Space. | Compensation analyst | Making budgets available to budget owners |
| 6 | Review, update, and submit awards (compensation analyst) | The compensation analyst can review and adjust the proposed awards. Resources whose salaries are outside the salary structure applicable to their work assignment are flagged. | Compensation analyst | Making compensation awards (Compensation Analyst) |
| 7 | Review, update, and submit awards (managers) |
If the planning rule is set to "No Manager Override," then managers can only view the proposed increases. Resources whose salaries are outside the salary structure applicable to their work assignment are flagged. If managers override the default budget values, then any validation rules that are specified for the planning rule apply. Managers can concurrently specify values for any other planning rules on the compensation awarding view where No Manager Override is not selected. |
Manager | Making compensation awards (managers) |
| 8 | Approve awards | If an awarding view requires approval, then submitting the award triggers the approval flow. | Approvers on flow | Approving, rejecting, or updating submitted compensation awards |
| 9 | Reverse approved awards | In exceptional cases when errors are found and an award needs to be reversed, the compensation analyst can reverse the approved awards. | Compensation analyst | Reversing approved awards (Compensation Analyst or Administrator) |
| 10 | Review and finalize the pay rate changes | The compensation analyst reviews the final compensation and updates the affected work assignments. | Compensation analyst | Viewing and finalizing pending pay rate changes |
| 11 | Review and finalize lump sum payments, bonus payments, and equity grants | The compensation analyst reviews and finalizes the payments so they can be interfaced to the payroll system. | Compensation analyst |
Viewing and finalizing pending lump sum payouts for awards |