Siebel Employee Relationship Management Administration Guide > Setting Up Compensation Planning >

Establishing Compensation Guidelines

Siebel Compensation Planning allows organizations to establish compensation guidelines for merit, variable pay, and stock. These compensation guidelines are specific to a salary plan and salary grade combination, and can be based on factors such as annual review ratings, company ratio, and salary quartiles. Managers can use these guidelines during the planning process when deciding merit increases, bonus amounts, and stock grants for each employee.

This section includes procedures for the following topics:

Creating a Compensation Guideline

Use the following procedure to establish guidelines for compensation.

To create a guideline

  1. From the application-level menu, choose View > Site Map > Compensation Planning Administration > Guidelines.
  2. In the Guidelines list, add a new record, and then complete the fields.

    3. The following table describes the fields in the guideline record.

    Field
    Comments
    Name
    Enter a descriptive name for the guideline.
    Description
    Enter a description for the guideline.
    Type
    Select the guideline type from the list. Options are Merit, Variable Pay, Promotion, and Stock.
    Effective Date
    Specify the effective date of the guideline.
    Active
    Select the check box to activate the guideline.

Defining Compensation Guideline Ranges

Guideline Ranges determine the minimum, maximum, and target guideline values for merits, variable pay, and stock. For merits and variable pay, the minimum, maximum, and target amounts entered should represent a percentage. For stock, the amounts entered should represent the actual number of shares.

To set guideline ranges

  1. In the Guidelines list, select the guideline.
  2. In the Guideline Table list, select the guideline for which ranges will be defined.
  3. In the Guideline Ranges list, add a new record and complete the fields.

    4. The following table describes the fields in the guideline ranges record.

    Field
    Comments
    Factor 1 - Low Value
    Enter the low value of the range for Factor 1.
    Factor 1 - High Value
    Enter the high value of the range for Factor 1.
    Factor 2 - Low Value
    Enter the low value of the range for Factor 2.
    Factor 2 - High Value
    Enter the high value of the range for Factor 2.
    Minimum
    Enter the guideline minimum amount.
    Maximum
    Enter the guideline maximum amount.
    Target
    Enter the guideline target amount.
    Default
    Select the default row to be used when an employee's Factor 1 and Factor 2 combination do not match a row in the table.

Associating a Salary Plan and Grade with the Guideline Table

The Guideline Table is used to associate salary plan and salary grade combinations with specific compensation guidelines and their corresponding factors.

To associate salary information with guidelines

  1. In the Guidelines list, select the guideline.
  2. In the Guideline Table list, add a new record and complete the fields.

    3. The following table describes the fields in the guideline table record.

    Field
    Comments
    Salary Plan
    Select the salary plan for which the guideline applies. The salary plan is used in combination with the selected salary grade.
    Salary Grade
    Select the salary grade for which the guideline applies. The salary grade is used in combination with the selected salary plan.
    Factor 1
    Select the factor for determining the guideline.
    The options are:
    Periodic Review. The most recent periodic review rating from Siebel Objectives and Reviews
    Annual Review. The most recent annual review rating from Siebel Objectives and Reviews
    Compa-Ratio. The salary and salary range midpoint
    Salary Quartile. The salary quartile based on the salary range
    Factor 2
    (Optional) Select a second factor for determining the guideline.


 Siebel Employee Relationship Management Administration Guide 
 Published: 18 April 2003