Defining base pay

Use this procedure to define a pay rate for a resource.

Note: Managers can access the pay rate history on the profiles of their direct reports. Resources can also access their own pay rate history on their own profile. The pay rate history is based on audit logs. If an error is found, then a correction to the audit log history must be made. A security role has been created for a user to make limited history corrections to the audit log. For more information, see the appropriate Landmark documentation.
  1. Select Compensation > Resource Analysis > Resources.
  2. On the Work Assignment Search tab, open the resource work assignment for which to define base pay.
  3. On the Compensation tab, specify this information:
    Pay Rate
    Specify a pay rate for the position.

    Depending on the default rules for the position field, the resource's pay rate may be the default from the position. It may or may not be overridden.

    • If you specify a pay rate, then leave the Schedule, Grade and Step fields blank. If you are using a step and grade schedule with zero as its first pay step, then you can specify a pay rate and a step and grade schedule. For example, for probationary pay. When the resource completes the criteria for the first step, the resource is moved to the next step and its corresponding pay rate.
    • If you specify a salary structure in the Compensation Analysis region, then the pay rate that you specify must be within range for the salary structure and grade.

    If you specify a pay rate, then you must also specify a currency code.

    Note: Do not update the pay rate currency code for an existing work assignment. If you must change the pay rate currency for a resource, then define a new work assignment for the resource. For example, when they move to another country.
    Step And Grade Schedule, Grade, Step

    If the resource is paid based on a step and grade schedule, then select the schedule, grade, and step.

    Note: If you specify a pay rate, then leave the Schedule, Grade, and Step fields blank. If you are using a step and grade schedule with zero as its first pay step, then you can specify a pay rate and a step and grade schedule. For example, for probationary pay. When the resource completes the criteria for the first step, the resource record is moved to the next step and its corresponding pay rate.
    Note: You can specify a step and grade schedule or a salary structure, but you cannot specify both.
    Pay Rate Type
    Select a pay rate type, for example hourly, annual salary, or monthly salary.
    Number Of Months
    If the Pay Rate Type is Monthly, specify the number of months. The default is 12.
    Pay Frequency
    Select the pay frequency, for example, weekly, biweekly, monthly, semimonthly.
    Payment Schedule
    Select the payment schedule, for example LastDayOfMonth.
    Full Time Equivalent
    Specify the full time equivalent factor associated with the resource. This is the percentage of standard full time hours the resource works.
    Full Time Annual Hours
    Specify the number of full-time annual hours for the position. For example, 2080 if the standard full time week is 40 hours, or 1820 if the standard full time week is 35 hours.
    Calculated Annual Hours
    When you save this form, the annual hours are calculated as Full Time Equivalent * Full Time Annual Hours. For example, if Full Time Equivalent is 0.75 and Full Time Annual Hours is 2080, the calculated annual hours are 2080 * 0.75 = 1560.
    Exempt From Overtime
    Select this check box if this work assignment is exempt from overtime.
    Collective Agreement
    If the position is regulated by a collective agreement, specify the collective agreement ID, the population category, and the position/level that apply.

    Ensure that the pay rate that you specified is within the salary range of the salary structure on which the resource compensation is based. Specify the salary structure information and click Save.

    Salary Structure
    Select a salary structure for the resource.
    Geographic Differential
    If the salary structure has a geographic differential that applies to the resource, select the appropriate geographic differential. For example, the salary structure may have different salary ranges for California and for the Midwest.
    Grade
    Select the salary structure grade to which the resource is compared.
    Compa Ratio
    If you specified a pay rate and a salary structure, geographic differential, and grade, the compa ratio percentage is calculated. This is the employee's pay rate compared to the salary structure zone flagged as the midpoint (compa ratio zone). The salary matrix is displayed for the structure and grade.
    Percent of Salary Range
    If you specified a pay rate and a salary structure, geographic differential, and grade, the position of the pay rate that is related to the salary range is calculated. The formula is SalaryRangePercent = (PayRate (Beginning Salary Range x FTE if <> 1)) / ((Ending Salary Range x FTE if <>1) (Beginning Salary Range x FTE if <>1)) x 100
    Notional Salary
    This field is country-specific. Specify the employee's notional salary, if applicable. This field is used to track the salary an international assignee would have received in their home country. This salary may continue to be used to determine benefits, merit increases, and other items.

    If you specify a notional salary, then select the currency in which the notional salary is expressed.

    Total Pay Rate
    The total of the base pay rate, other pay rates, and allowances for this assignment is calculated.
    Total FTE
    The total FTE is calculated for all of the resource's work assignments. If the resource has one assignment at 0.75 FTE and one assignment at 0.25 FTE, then the total FTE is 1.
  4. In the Compensation Analysis region, specify this information:
    Salary Structure
    Select the resource's salary structure.

    See Assigning salary structures to work assignments.

    Geographic Differential.
    Select the resource's geographic differential, if any.

    See Assigning salary structures to work assignments.

    Grade
    Select the resource's grade.

    See Assigning salary structures to work assignments.

    Notational Salary
    If applicable, specify the employee's home salary. This field is for information only. You can use it to track the salary that an international assignee would have received in their home country. This salary may continue to be used to determine benefits, merit increases, etc.
    Total Pay Rate
    If an employee has base pay plus additional rates, this field shows the full amount for this work assignment. For example, allowances or add-on rates
    Total FTE
    If an employee has multiple work assignments, this is the total FTE across all work assignments.
  5. Click Save.