Making compensation awards (managers)

To perform this task, you must be logged in as Manager or Budget Owner.

Before a budget owner can make compensation awards in Manager Space, the compensation analyst must make available the budget that the manager owns.

Managers can make compensation awards for the employees that report directly to them and for the employees that report to managers below them in the Manager Structure.

The ability of a manager to view budgets and make compensation awards depends on the manager level assigned to the awarding view. Initially, a manager must be at or above the level assigned to the awarding view to make awards for that awarding view. A manager can also become the owner as the result of a budget being released to the current owner. The manager can release his own budget to a higher-level manager. A manager can also release his direct reports' budget's to a higher-level or lower-level manager.

  1. Select Manager > Adjust Compensation > Compensation Awarding.
  2. Open a compensation awarding view.
    The awarding form header shows the status of the award, the percentage of the budget awarded, the percentage of completion, and the remaining budgeted amounts for each rule attached to the view.

    The Needs Review tab shows the records that have not been processed.

    The Awards tab, shows records that have already been awarded.

    When you start the process, all the records are on the Needs Review tab. The Awards tab is displayed only when you add an award for the first employee. When all employees have been awarded, all the records are on the Awards tab and the Needs Review tab is not available.

    For each employee, you can view this information on each tab:

    Note: The awarding view settings define which of these tabs are available to managers.
    Tab Description
    Analysis A consolidated analysis of the employee's compensation: The current and new compa ratio, the current and new percent in range, the FTE, the full-time annual hours, the pay rate type, the annual salary and currency if the pay rate type is not annual.
    Guidelines The guidelines that are applicable to the employee and the complete guidelines that you defined for each type of award. For example, if a guideline is based on an employee's performance, the Guideline tab shows the recommended award for the employee, based on the employee's performance, plus all the entire set of performance-based guidelines for all employees.
    Salary Structure

    The compensation analyst can use this information assess where the employee is in the salary structure range.

    Employees that are below the salary range are flagged. Salary adjustments to bring rates up to the minimum can be precalculated on a market adjustment planning rule.
    History The employee's pay rate history, the employee's other pay rates if applicable, the employee's performance history, and the employee's equity grant history.
    Additional

    The budgeted percent for each rule, such as annualized budget amount, calculated lump sum percent, adjusted lump sum percent, including incentive compensation target and payout amounts for bonus award budgets.

    If the budget amount was prorated, a blue alert is displayed on the budgeted percent. Place the cursor over the blue alert to view the budget percent before proration.
    Proration Information Proration information for each prorated employee. Information includes the proration factor, the proration date and the proration reason. If the Adjust Awards By Proration Factor option was selected for the compensation awarding view, the tab also contains the manager's awarded amount and the percent before proration.
    Base Currency Available only for an employee whose salary or bonus is in a currency other that the company base currency. The employee's salary and bonus information are displayed in base currency.
    Bonus Calculation A list of payouts that were finalized in Incentive Compensation which resulted in the bonus budget.
    Reasons/Comments Available only if Allow Reasons And Comments was selected for the compensation awarding view and an award reason is specified for an employee. To add an award reason with or without comment, select the employee and click Award Reason.
  3. On the Needs Review tab, use the columns next to each employee's name to add awards.
    • To keep the employee at the same pay rate, select the employee and click Update Award. The record moves from the Needs Review tab to the Awards tab.

      To award an amount, specify the award, and click Save. The record moves from the Needs Review tab to the Awards tab with the new pay rate.

    Specify this information:

    Note: The awarding columns correspond to each type of award defined for the awarding view: salary (with or without lump sums), bonus or equity. Columns are displayed only for the defined award types. For example, if an awarding view does not contain equity awards, equity awards columns are not displayed. You may see more columns than are described here, depending on the column display selections made on the awarding view.
    Status
    The awarding status is displayed. Draft indicates that no awarding has taken place, Updated indicates that the manager has done some awarding, and Approved indicates that the awarding is complete.
    Rating
    The default value comes from the performance appraisal, can be determined by budget calculations, or can be loaded through Spreadsheet Designer. You can change it.
    Note: If the performance rating is based on a rating score, the performance should be calculated by the rating score calculate the performance rating.
    Score
    If the performance rating is associated with rating scores, the rating score is displayed in this field. The default value comes from a rating appraisal or is loaded using Spreadsheet Designer. If rating scores are used, a change to the rating score may also change the performance rating if score ranges are entered on the rating scale.
    Currency
    The employee's work assignment currency.
    Pay Rate, Current
    The employee's current pay rate.
    Pay Rate, New
    The new pay rate after salary awards. This is updated after an award is made.
    (Salary-Type Rule) Budgeted
    The budget amount for the first rule.

    A blue alert indicates that the budget amount was prorated. Move the mouse over the blue alert to view the proration information.

    (Salary-Type Rule) % increase
    Specify the percent increase amount for the first rule. If you are awarding by amounts, leave this field blank.
    (Salary-Type Rule) Amount
    Specify the increase amount for the first rule. If you are awarding by percentages, leave this field blank.

    If you specify an amount that will be adjusted for proration, you are prompted to confirm the amount. Move the pointer over the blue alert to view the proration information.

    Lump Sum, Amount
    If applicable, the calculated lump sum is displayed. Depending on how you defined the rules, managers may be able to adjust this amount.
    Lump Sum, %
    This column is displayed only if managers can specify a lump sum percent and lump sum payments are applicable. If the manager or compensation analyst makes a change to the lump sum amount, the adjusted lump sum percent is displayed on the Additional Awarding Information tab.

    If the manager or compensation analyst specifies a lump sum percent, the lump sum amount is recalculated.

    (Bonus Rule) Budgeted
    The bonus award budgeted amount is displayed.
    (Bonus Rule) % Multiplier
    If you specified an individual multiplier, the bonus budget amount is multiplied by this field to calculate the bonus amount.
    (Bonus Rule) Amount
    Specify the bonus amount. If you are awarding by percentages, leave this field blank.
    (Equity Rule) Budgeted Amount/Units
    For an equity award, the budgeted amount or units is displayed.

    A blue alert indicates that the budgeted amount was prorated. Move the pointer over the blue alert to view the proration information.

    (Equity Rule) Awarded Amount/Units
    For an equity award, specify the awarded amount or units.
  4. On the Awards tab, review the records that have been awarded.
    You can make changes on the Awards tab. To revert a record to its original Needs Review status, click Undo. The record is moved to the Needs Review tab.
  5. Click Submit to route the awards through the approvals defined in the approval process flow. Approvals are sent up the chain of reporting.
    When the final approval is made, the application creates the pending pay rate increase records, the pending lump sum payout records, the pending bonus awards, and the pending equity awards.

    If you add awards as a proxy for your own direct manager, which means you are one of the employees being awarded, these restrictions apply:

    • You cannot update your own compensation award record.
    • Because all of a manager's focal period awarding records must be submitted or canceled together, you cannot submit or cancel the awards you have updated if you are one of employees in the list of direct reports. Your manager or another proxy who does not have any records in the list must perform the submit or cancel. You can submit and cancel anniversary awards for employees other than yourself.
    • You have access to the manager's inbasket, with these restrictions:
      • You can see the entire list of inbasket items for the manager. Security prevents you from opening inbasket items for business classes that are not part of the proxy role assigned to you.
      • Emails that would normally be sent to the manager (proxy grantor) when a process flow is executed are still sent to the manager. They are not sent to the proxy.
      • Withdrawn or Returned action requests that are resubmitted for approval will show the most recent submitter as the originator.