Defining salary structures

  1. Select Compensation > Set Up > Salary Structures > Salary Structures.
  2. Click Create, and specify this information:
    Salary Structure

    Specify a name; for example, Management.

    Description

    Specify a description for the structure

    Salary Structure Version

    Select a date for the structure.

    Pay Rate Type

    Select the type of rate.

    Number of Grades

    Specify the number of grades in this salary structure.

    Number of Zones

    Specify the number of zones in this salary structure.

    Note: 

    On work assignments, you can display up to five zones. If more than five zones exist, only the minimum, maximum, and compa zones will be shown.

    Compa Ratio Zone

    Specify the zone on which the compa ratio will be based. For example, if there are three zones per grade, and you want the middle zone used for the compa ratio, then specify 2.

    The compa ratio determines which column you will base analysis on, and is generally the mid point. Compensation calculates the compa ratio by this calculation: (Pay rate / (Rate from zone flagged as the compa ratio x FTE if) x 100

    Requires Geographical Differentials

    Select this check box for the salary structure to include different salary rates for different geographic locations.

    Rounding Method

    Select the rounding method to use when calculating new pay rates for the structure.

    If you select Normal, the number rounds up if the last digit is 5 or more. It rounds down if the last digit is less than 5.

    If you select High, the number rounds up.

    If you select Low, the number rounds down.

    Round To Precision

    Specify the decimal place to round to; for example 1.00.

  3. Click Save. A bottom panel with tabs for grades, zones, and iterations displays. The application creates default names for the grades and zones, but you can change them. For example, you change the zones to minimum, midpoint and maximum.
  4. On the Iterations tab, click Create. On the Create Structure Iteration form, specify this information:
    Geographical Differential

    If you selected Requires Geographic Differentials on the Salary Structures form, select the region for the structure. See Defining geographic differential codes.

    Currency

    Select a currency code for this region/salary structure

    Comment

    Specify any comments. For example, if you are doing modeling, you can track which iteration this is, such as "draft at 3 percent."

  5. Click OK.

    The iteration is created in Preliminary status.

  6. Specify the pay rates for the iteration.

    • To specify the pay rates in a linear format (one below the other, click the iteration number, specify the rates, and click Save.

    • To specify the rates in a matrix format, click in the Status column of the iteration, specify the rates, and click Save.

  7. To create another version of an iteration, use this procedure:
    1. Highlight the original iteration.
    2. To create a new iteration that has the same pay rates, on the Iterations tab, select Actions > Create New Iteration From Existing Iteration, specify a comment, and click OK.

      or

      To create an iteration that also updates the pay rates by the percentage or amount that you indicate, select Action > Create New Iteration From Existing Iteration And Update Rates, specify the type and value of the increase (for example, Percent, 3.5), specify a comment, and click OK.

      The new iteration is numbered sequentially.

      Note: 

      If the salary structure uses geographic differentials, each geographic differential can have its own set of iterations.

  8. Activate the salary structure iteration version to use.

    • In the Iterations region, highlight the iteration and select Actions > Activate Iteration.

    Note: 

    Only one iteration can be Active at a given time for the same organization, salary structure, geographic differential, and effective date. If you already have an Active iteration, activating another iteration will automatically change any currently Active iteration to Inactive.

  9. To inactivate an Active iteration, choose the Inactivate action. The status becomes Inactive.
    Note: 

    It is possible to have all iterations Inactive. This essentially inactivates the salary structure or salary structure/geographic differential that the iterations are associated with.

  10. To return any Active or Inactive iteration to Preliminary status, choose the Revert To Preliminary action.