11g Release 1 (11.1.4)
Part Number E20376-04
Contents
Previous
Next
|
Oracle® Fusion
Applications Compensation Management Implementation Guide 11g Release 1 (11.1.4) Part Number E20376-04 |
Contents |
Previous |
Next |
This chapter contains the following:
Define Individual Compensation: Overview
Manage Individual Compensation Plans
FAQs for Define Individual Compensation
Configure compensation plans, payroll elements, HR actions, and other objects for defining plans to allocate off-cycle compensation to individuals or for personal savings and charitable contributions. Add payroll elements used in these plans to compensation history.
To define Individual compensation and personal contribution plans, application implementation managers and compensation administrators start from the Setup and Maintenance Overview page. Select Navigator - Setup and Maintenance.
Individual compensation plans define variable compensation that managers can award to individual workers outside of the regular compensation cycle, such as a spot bonus or education reimbursement. You can also create plans that workers use to manage their own contributions to charitable or savings plans.
The following components comprise the details of a plan:
Options
Payroll elements and input values
Eligibility
Distribution dates
Access restrictions
Instruction text
Each plan must have at least one option, with which you associate payroll element details and optional eligibility requirements. For example, to specify a different compensation amount for each vehicle model within a company car plan, set up a separate option for each model. You can also attach different eligibility restrictions to each model, such as restricting luxury models to executives only. Another example is a spot bonus plan with options consisting of different fixed monetary amounts.
Associate a payroll element with an option to store compensation-related information. You can associate each option with only one element and each element with only one plan and option.
When you set up an element, you configure input values that determine the following:
Compensation information that managers must enter when they award compensation under the plan
Data that workers must enter when managing their own contributions in a plan
Default values that aid managers or workers with data entry
For example, you can configure an input value to enter the vehicle mileage when issued for a company car plan.
Eligibility profiles control which compensation plans or options a particular worker is entitled to participate in. You can attach eligibility profiles to a plan, an option, or both plan and option. For example, you might attach an eligibility profile to the company car plan to include only the sales department, and then attach additional eligibility profiles to the vehicle model options to restrict luxury models to only executive positions.
Compensation eligibility evaluation processing also uses criteria defined at the element link level to determine whether a person is eligible for a compensation plan.
To specify when payments begin under the plan and when they end if compensation is recurring, select from several date rules, such as Next payroll period start date. You can select a rule that enables the manager or worker to enter the date, or use a formula to derive the dates by your own logic.
Plan access restrictions control a user's ability to access or make updates to awards in individual compensation plans.
You can restrict access to a plan based on a combination of three factors:
HR Action, such as promotion, transfer, or position change, as well as individual compensation management in the Manager Resources Dashboard or Person Gallery
The plan is unavailable for actions that are not included. You must specify access level and time period details for each individually selected action.
Compensation plan access level
Restrict access separately for creating new allocations, updating allocations, or discontinuing allocations.
Time period of access
For each access level, specify access always, never, or during a specified date range. For example, to allow workers to enroll in a plan only during June and December of each year, specify these two monthly date ranges in each year for the new allocations access level.
You can compose optional instruction text to assist managers or workers using the plan.
You can create a variety of individual compensation plans for one-time or ongoing payments or contributions, for various purposes. The following scenarios illustrate some typical plans and provide tips on how to set them up.
A typical use of a plan for a one-time payment is a spot bonus. Set up your payroll element to make a single payment of a manager-entered value and process the payroll element once per payroll period. Since this is a one-time payment, specify a payment start date and leave the end date blank. You might want to add an eligibility profile to constrain the plan. For example, use derived factors to identify full-time employment for a minimum of one year length of service. To restrict access by HR action, select desired actions related to hiring, adding, and promoting workers. Also add the Manage Individual Compensation action to enable managers to award the bonus through the Person Gallery and Manager Resources Dashboard.
A typical use of a plan for an ongoing payment is a car allowance. In this example, regional sales managers are eligible for a car allowance based on the radius of their territory from headquarters. Workers whose territory radius is less than or equal to 100 miles from headquarters receive 300 USD per month while those with a radius greater than 100 miles receive 500 USD per month. Set up two plan options:
One option has a recurring payroll element for territories with a radius of less than or equal to 100 miles and an input value of 300 USD.
One option has a recurring payroll element for territories with a radius greater than 100 miles and an input value of 500 USD.
Both payroll elements process once a month. Enable the manager to enter start and end dates based on an agreement with the worker. For example, payment might start on the first of the month or the first payroll period following a promotion and end in one year. In this scenario, you would attach an eligibility profile that selects the Regional Sales Manager job. To restrict access by HR action, select desired actions related to hiring, adding, promoting, and transferring workers. Also, add the Manage Individual Compensation action to enable managers to award or update the car allowance through the Person Gallery and Manager Resources Dashboard.
Tip
You can add instructions to inform managers of the policy of payment based on radius.
For worker contribution plans, set up a plan option for contributions of either amount or percentage, and set up a payroll element with a corresponding input value of either a flat amount or percentage to contribute per payroll period. Start dates are typically 1 January of the next calendar year or after open enrollment. Select Manage Contributions as the access action to make the plan available to workers to manage. You can define periods where workers can enroll for the first time, update existing contributions, or discontinue contributions. For example, enable workers to always create new allocations while restricting allocation updates and discontinuations to a specified period, such as an open enrollment period of 15-30 November. You can add any instructions necessary to assist workers with the specific plan policies.
Plan access restrictions control the situations in which an individual compensation plan is available for allocations or contributions by a line manager or worker, and regulate the user's ability to create, update, or discontinue allocations or contributions under the plan. You choose whether to restrict plan access and, if you do, you specify restriction details by action.
The first choice you make on the Plan Access tab is whether or not to restrict access to the plan.
If you choose not to restrict access, then this plan becomes available to line managers and workers in all pages where individual compensation or personal contributions can be managed.
Warning
Use the No option with caution to avoid granting workers access to manager plans. For example, if you do not restrict access to a bonus plan, then individual workers would be able to manage the bonus plan for themselves in their portrait. There are very few situations in which you would not restrict access to a plan.
To complete the plan access configuration, you must further define the restriction by selecting and adding actions and specifying other access level details.
If you choose to restrict access, you must select at least one action. For each action that you add to the plan, you must further specify the time period in which the user can create, update, or discontinue allocations or contributions
Important action options include:
Specific HR actions
Manage Individual Compensation
Manage Contributions
All actions
Select one or more HR actions in which this plan should be available to the line manager or HR specialist for eligible workers during the corresponding HR transaction.
For example, add a transfer action to a moving allowance plan to make it available when transferring a worker.
This option makes the plan available to line managers in the Manager Resources Dashboard or Person Gallery if the worker is otherwise eligible for the plan. If you select other HR actions but do not select this option, the plan would be available to the manager only within the selected HR action transaction, such as a promotion transaction.
You can use this action to provide managers with manager dashboard and portrait access to compensation plans that are either related or unrelated to HR transactions, as illustrated in the following examples.
Related to HR action
Add a hire action to the spot bonus plan to make it available for a hiring bonus while in the hire transaction. Also add the Manage Individual Compensation action to provide alternative access to the spot bonus plan for the hiring bonus.
Unrelated to HR actions
The Manage Individual Compensation action enables managers to use the spot bonus plan for special bonuses, such as awarding individuals for an important achievement or contribution.
If the plan is a worker contribution plan, such as a savings or charitable contribution plan, you must select only this option. This action makes the plan available to eligible workers in their portrait. Specify the additional access details according to plan design, such as a restricted time period for enrolling in, modifying, or discontinuing the plan.
Warning
Do not select any additional actions for a worker contribution plan.
Selecting All actions is similar to not restricting access, except that you can specify access details that apply to all actions. This option includes all actions available in the list, including the Manage Contributions action, which makes the plan available to all workers who are otherwise eligible for the plan.
Warning
Use the All option with caution because it gives both workers and managers access to the plan. There are very few situations in which this option is desirable.
The Compensation Start Date formula can be used to determine the start date of compensation awarded using an individual compensation plan.
When setting up a compensation plan, you can select the defined formula after you select Formula as the Compensation Start Date value.
Contexts
The following contexts are available to formulas of this type:
EFFECTIVE_DATE
HR_ASSIGNMENT_ID
Database Items
Database items are not available to formulas of this type.
Input Variables
The following input variables are available to formulas of this type:
|
Input |
Data Type |
Required |
Description |
|---|---|---|---|
|
CMP_IV_EFFECTIVE_DATE |
Varchar2 |
N |
Input effective date |
|
CMP_IV_ASSIGNMENT_ID |
Number |
N |
Assignment ID |
|
CMP_IV_PERSON_ID |
Number |
N |
Person ID |
|
CMP_IV_PLAN_ID |
Number |
N |
Plan ID |
|
CMP_IV_OPTION_ID |
Number |
N |
Option ID |
Return Values
The following return variables are available to formulas of this type.
|
Return Value |
Data Type |
Required |
Description |
|---|---|---|---|
|
COMPENSATION_START_DATE |
Varchar2 |
N |
Compensation Start Date |
Errors
CMP_VC_ALLOC_FORMULA_FAILURE - Error occurred during formula processing.
Sample Formula
This sample formula calculates the compensation start date to be 3 months later from the given date.
/*********************************************************
FORMULA NAME : Compensation Start Date Formula
FORMULA TYPE : Compensation Start Date
DESCRIPTION : Formula that returns Compensation Start Date to be 3 month later of the given date
*******************************************************/
/*=========== DATABASE ITEM DEFAULTS BEGIN ==============*/
N/A
/*=========== DATABASE ITEM DEFAULTS ENDS ===============*/
/*=========== FORMULA SECTION BEGIN =====================*/
INPUTS ARE CMP_IV_EFFECTIVE_DATE (text)
DEFAULT FOR CMP_IV_EFFECTIVE_DATE IS '4012/01/01'
l_date = ADD_MONTHS(TO_DATE(CMP_IV_EFFECTIVE_DATE, 'YYYY/MM/DD'),3)
compensation_start_date = TO_CHAR(ldate, 'YYYY/MM/DD')
RETURN compensation_start_date
/*=========== FORMULA SECTION END =======================*/
The Compensation End Date formula can be used to determine the end date of compensation awarded using an individual compensation plan.
When setting up a compensation plan, you can select the defined formula after you select Formula as the Compensation End Date value.
Contexts
The following contexts are available to formulas of this type:
EFFECTIVE_DATE
HR_ASSIGNMENT_ID
Database Items
Database items are not available to formulas of this type.
Input Variables
The following input variables are available to formulas of this type:
|
Input |
Data Type |
Required |
Description |
|---|---|---|---|
|
CMP_IV_EFFECTIVE_DATE |
Varchar2 |
N |
Input effective date |
|
CMP_IV_ASSIGNMENT_ID |
Number |
N |
Assignment ID |
|
CMP_IV_PERSON_ID |
Number |
N |
Person ID |
|
CMP_IV_PLAN_ID |
Number |
N |
Plan ID |
|
CMP_IV_OPTION_ID |
Number |
N |
Option ID |
Return Values
The following return variables are available to formulas of this type.
|
Return Value |
Data Type |
Required |
Description |
|---|---|---|---|
|
COMPENSATION_END_DATE |
Varchar2 |
N |
Compensation End Date |
Errors
CMP_VC_ALLOC_FORMULA_FAILURE - Error occurred during formula processing.
Sample Formula
This sample formula calculates the compensation end date to be 6 months later of the given date.
/*********************************************************
FORMULA NAME : Compensation End Date Formula
FORMULA TYPE : Compensation End Date
DESCRIPTION : Formula that returns Compensation End Date
*******************************************************/
/*=========== DATABASE ITEM DEFAULTS BEGIN ==============*/
N/A
/*=========== DATABASE ITEM DEFAULTS ENDS ===============*/
/*=========== FORMULA SECTION BEGIN =====================*/
INPUTS ARE CMP_IV_EFFECTIVE_DATE (text)
DEFAULT FOR CMP_IV_EFFECTIVE_DATE IS '4012/01/01'
l_date = ADD_MONTHS(TO_DATE(CMP_IV_EFFECTIVE_DATE, 'YYYY/MM/DD'),6)
compensation_end_date = TO_CHAR(ldate, 'YYYY/MM/DD')
RETURN compensation_end_date
/*=========== FORMULA SECTION END =======================*/
The Compensation History summary table displays four categories of compensation: Base Pay, Other Compensation (one-time payments), Stock, and Recurring Payments. Compensation history automatically displays base pay and stock grants. You must add additional recurring nonbase pay and one-time compensation to history.
The summary table shows all included compensation given to a worker, with links to detailed compensation allocation information. The summary displays five years of compensation history and the detail views display all years of compensation history. Stock history indicates the units in which it was granted, such as shares or options.
This topic explains how to configure compensation history and describes the four history categories.
Compensation history automatically retrieves base pay history from the salary table and stock share grants from the stock table for the Salary and Stock categories, respectively. To include compensation in the Other Compensation and Recurring Payments categories, you must manually add the corresponding payroll elements to compensation history.
On the Manage Compensation History page, select the desired payroll elements, for example, Spot Bonus or Regional Sales Car Allowance, and the relevant corresponding input value. The payroll element definition automatically supplies the remaining data and determines the history category based on the recurrence of the payroll element..
The Salary section of the summary table displays three rows of information:
Base rate: For the current year, it is the most recent pay rate, shown in the frequency of the worker's salary basis (such as hourly, monthly, or annually). For previous years, it is the pay rate on 31 December of the given year.
Annualized rate: Calculated using the worker's base rate and the annualization factor of the salary basis frequency as of 31 December of the given year.
Percentage change: The difference in the worker's base rate from the previous year, if history exists.
In the summary table, click the base pay hyperlink to view detailed information about salary history, percentage change, compa-ratio, and growth rate. The detail view includes links to individual base pay change records.
The Stock section of the summary table includes any type of stock grant that is given to the worker in the unit granted, such as shares or options. This section displays a sum total for each grant type awarded.
In the summary table, click the grant name to view information about grant date and price; granted, vested, and unvested shares; and the estimated value of unvested shares as well as to access further details.
The Other Compensation section of the summary table displays nonrecurring monetary compensation such as commissions, bonuses, overtime and reimbursable expenses.
In the summary table, click the compensation name to view effective date, amount, currency, and grand total information about all awards.
The Recurring Payments section of the summary table includes the latest amount of recurring compensation, such as car allowances and education assistance.
In the summary table, click the payment name to view effective date, amount, currency, and grand total information for an individual award or compensation amounts.
When All is currently selected as the action value, the Add action is disabled. To make the plan available only for specific HR actions, replace the value of All by selecting a specific action. After selecting the first HR action, you can add rows and select additional actions. Specify access details for each individual HR action that you select.
Important
Use the All option with caution because it gives both workers and managers access to the plan. There are very few situations in which this option is desirable. After you replace the value of All, the plan is available only in the transactions that you select.
Role based security determines access to the work area where individual compensation can be awarded or updated.
Restriction by HR action provides a more granular way to control when users can add, edit, or delete individual compensation under the plan based on the HR action.
|
 Copyright © 2011-2012, Oracle and/or its affiliates. All rights reserved. Legal Notices |
|
