Create compensation plans and cycles used for compensating groups of workers on a focal or anniversary basis. Configure the type of compensation allocated, the information displayed to managers, whether budgeting is used, eligibility criteria for the plan or component, and the approval hierarchy.
Manage payroll elements, formulas, derived eligibility factors, and HR actions used in plan setup and administration.
To define workforce compensation, application implementors and compensation administrators start from the Setup and Maintenance Overview page. Select Navigator - Setup and Maintenance .
Compensation administrators can maintain workforce compensation plans from the Compensation work area. Select Navigator - Compensation .
This topic identifies lookups used in a workforce compensation cycle. You can modify these lookup types during initial implementation and at any later time.
When you adjust a budget, you specify a reason for the adjustment. Adjustments and other budget changes display in the budget audit history along with the reasons. You can add different adjustment values to the CMP_BUDGET_AUDIT_REASONS lookup type. Values that start with CMP$$ will only show in audit history.
The following reasons are predefined:
You use nonmonetary units of measure throughout workforce compensation. You can add values or edit existing values to the CMP_NONMONETARY_UOM lookup type.
The following nonmonetary units of measure are predefined:
By configuring five custom lookup types, you can create custom columns that allow managers to select from a list of values. For example, you might create a custom column called Up For Promotion and allow managers to select Yes or No by adding those meanings to one of the custom lookup types. Lookup codes must be numeric.
Custom column lookup types are:
The delivered value is Default.
While designing your compensation plan, you make important choices, such as plan access, components, alerts, worksheet and budget sheet display, and models and reports.
The configuration options that you can enable are grouped into the following categories:
Plan foundation configuration options are:
If you use budgeting, you can have separate budgets for each component or link multiple components to a single budget. You can also link budgets to off-cycle compensation plans. For example, you can give a manager a single annual budget amount and draw both focal and off-cycle awards from the same budget pool. Once you enable budgeting, you configure how data displays on the budget page, such as data display order, available menu actions, and text instructions to the managers. Also, you can copy a budget page layout from another plan.
Worksheet configuration options are:
Note If you are using HCM Coexistence between Oracle PeopleSoft Human Resources and Oracle Fusion Workforce Compensation, do not enable the leave of absence alert.
Models and reports configuration options are:
The type of employment record selected for a plan determines the employment records evaluated by the start compensation cycle process and which records are used during the compensation cycle. Determine the record to use by selecting one of the four options:
The start compensation cycle process includes and evaluates eligibility for primary assignments only. Even if a worker has multiple assignments, the worker only appears on the worksheet of the manager for the primary assignment. This is true if the plan uses a manager hierarchy.
The start compensation cycle process includes and evaluates eligibility for all assignments. If a worker has multiple assignments, the worker may appear on one manager's worksheet more than once. Or, if the manager on each assignment is different, the worker may appear on multiple managers' worksheets.
The start compensation process includes and evaluates eligibility for employment terms of legal employers that use the three-tier employment model. If the plan uses a manager hierarchy, workers appear on the worksheet of the manager of the primary assignment. Workers whose legal employer uses a two-tier employment model are not evaluated.
The start compensation process includes and evaluates eligibility for all assignments with a salary record and employment terms with a salary record. If the plan uses a manager hierarchy, workers appear on the worksheet of the manager of the primary assignment. If a worker has multiple assignments with a salary record, the worker may appear on one manager's worksheet more than once with a different base salary for each assignment. Or if the manager on each assignment is different, the worker may appear on multiple managers' worksheets with different salaries for each. Assignments and employment terms that do not have a salary record associated with it are not evaluated.
The hierarchy determines how approvals are routed to the highest level approver. The same hierarchy also determines how budgets are pushed down the organization when using manager level budgeting, or how budgets roll up when using worker level budgeting. It also determines the workers that appear on each manager's worksheet. Determine the hierarchy by one of the three options:
A set of approval relationships and rules used by the Approvals Management Structure determines the hierarchy.
The supervisor associated with the worker's employment record determines the hierarchy.
A custom hierarchy created using a formula determines the hierarchy.
The Compensation Hierarchy Determination formula determines the hierarchy for an associated workforce compensation plan.
You select the formula on the Configure Plan Details page.
The following contexts are available to formulas of this type:
Database items are not available to formulas of this type.
The following input variables are available to formulas of this type.