Creating a Base Pay Structure Scenario

This section provides an overview of the Base Pay Structure module and discusses how to:

Assign job codes to job classes.
Create a base pay structure definition.
Build the salary grades and ranges for your base pay structure.
Build steps within a pay grade.
Assign a pay grade to each job code.

Pages Used to Create a Base Pay Structure Scenario

Page Name	Definition Name	Navigation	Usage
Job Class	WA_JOBCLS_TBL	select Workforce Analytics, then select Base Pay Structure, then select Setup, then select Create Job Class, then select Job Class	Create a grouping of job codes known as a job class, which provides the basis for a pay structure.
Base Pay Structure - Definition	WA_PAYSTR1_TBL	select Workforce Analytics, then select Base Pay Structure, then select Setup, then select Create Base Pay Structure, then select Base Pay Structure - Definition	Create a base pay structure ID, associate it with a job class, and select the method to use to develop the base pay structure.
Base Pay Structure - Grades	WA_GRADE_TBL	select Workforce Analytics, then select Base Pay Structure, then select Setup, then select Create Base Pay Structure, then select Base Pay Structure - Grades	Build the grades and ranges for your base pay structure using the specified parameters.
Base Pay Structure - Steps	WA_STEP_TBL	select Workforce Analytics, then select Base Pay Structure, then select Setup, then select Create Base Pay Structure, then select Base Pay Structure - Steps	Build, view, and revise salary steps for each pay grade within the base pay structure.
Grade Assignment	WA_JOBGRADE_TBL	select Workforce Analytics, then select Base Pay Structure, then select Setup, then select Assign Pay Grades, then select Grade Assignment	Assign a grade to each job code within a pay structure.

Understanding How to Create a Base Pay Structure Scenario

In the Base Pay Structure module you create base pay structures using online pages, and PeopleCode performs all of the calculations and system processing. In this module, you don't create scenarios in the same manner as you do in the other Workforce Rewards modules. There are no model or scenario definition pages to complete, and there are no Application Engine processes or jobstreams to run.

You use the Base Pay Structure tools to develop base pay structures that fit your organization's pay strategy, according to your target market rates. The basic process for creating base pay structure scenarios involves these steps:

Assign groups of job codes to a job class, by associating the job class with a node on the JOBCODE tree.
Create a pay structure definition for the job class. Use the market rates for benchmark jobs developed with the Market Compensation module, or create new ones.
Build salary grades and ranges.
Build steps within pay grades, if applicable.
For each job class, review the pay grades the system automatically assigns to benchmark jobs, and assign pay grades to the non-benchmark jobs.

Synchronizing Tables in the Base Pay Structure Module

The table behind the grid on the Job Class Definition page is WA_JOBCLS_SEQ. The table behind the grids on the Job Code / Grade Assignment, Structure Fit to Market, and Pay Structure Finalization pages is WA_JOBCLS_PAY. The data between the two tables is synchronized whenever one of the following events occurs:

You change and save data on the Job Class Definition page.
You change the effective date or job class on the Base Pay Structure Definition component.

This synchronization process works in the background, and affects the way you work with job classes in the Base Pay Structure module. Normally, if you create a job class on the Job Class Definition page and save the data, the system synchronizes the WA_JOBCLS_SEQ and WA_JOBCLS_PAY tables.

If you do not create job classes on the Job Class Definition page (and instead move the Job Class data in with Data Mover or ETL), however, you will not see any job codes on the grids based on the WA_JOBCLS_PAY table. This is because no event occurred to trigger the automatic synchronization of the two tables. That is, no job codes appear in the grids based on the WA_JOBCLS_PAY table until you open the job class on the Job Class Definition page, change something about the job class, and save the changes. This triggers the PeopleCode synchronization process.

For example, open the Job Class Definition page, change one of the job codes in the grid by selecting a value from the list of available options, change it back to what it was before, and click Save. While you have made no net changes to the job class, the page changes can still be saved, and the PeopleCode synchronization process is triggered.

Reviewing Base Pay Structures

You use the Base Pay Structure Definition component to develop, revise, and evaluate base pay structures. In the process you define the base pay structure parameters, and build the grades and steps.

Note: Base pay structures apply to regular base compensation. This is direct, fixed compensation. Variable compensation types (such as bonuses), and other compensation types (such as benefits), are addressed in the Manage Compensation module. You use the functionality in that module to adjust current pay strategies that include variable compensation or other forms of compensation.

Question	Answer
What is the difference between a salary administration plan, as used in HRMS, and a Base Pay Structure in Workforce Rewards?	A salary administration plan consists of a plan identification code, salary grades, and steps. A Base Pay Structure includes a job class (a grouping of job codes), a salary plan ID, and salary grades and steps.

You begin building a pay structure by creating a Pay Structure ID, associating it with a Job Class ID, and specifying pay structure parameters (such as the number of grades, high and low midpoints, and midpoint progression). Then PeopleCode processing builds the pay grades and steps, with their associated range values. The market rate midpoint values for the selected group of job codes are used as a starting point for the system calculations.

Here are some examples of how to use the Base Pay Structure Definition component to modify and test pay structures:

Provide across the board pay rate increases or cost-of-living adjustments (COLA).
Adjust pay rates for hourly or salaried workers, to better align them with your new targets.
Create special pay structures for employees working in jobs requiring key technological or management skills.
Create new pay structures for new job codes within your organization.

Job Class Page

Use the Job Class page (WA_JOBCLS_TBL) to create a grouping of job codes known as a job class, which provides the basis for a pay structure.

Navigation

select Workforce Analytics, then select Base Pay Structure, then select Setup, then select Create Job Class, then select Job Class

Image: Job Class page

This example illustrates the fields and controls on the Job Class page. You can find definitions for the fields and controls later on this page.

Using the Selection Criteria Group Box

Tree Node

Select from the prompt list to indicate which node on the JOBCODE tree you want to associate with the job class

Attach

When you click the Attach To List button, the system populates the grid at the bottom of the page with the job codes associated with the Tree Node you have selected.

Remove

Click the Remove From List button to remove all the job codes associated with the specified Tree Node from the grid at the bottom of the page.

Using the Grid

Attach to List

Click this button once the grid is populated.

Job Code

This field becomes editable when you click the Attach to List button.

Note: The remaining fields are display-only.

You may edit the list by:

Inserting additional rows of data (job codes).
Adding groups of job codes to the list using the Selection Criteria group box.
Removing rows of data (job codes) from the list.

In the grid the following fields display:

Job Code

If you populated this field using the Selection Criteria group box, this Job Code is associated with the Tree Node you specified.

Target

Indicates whether the Job Code has a target market rate developed from a benchmark job in the Market Compensation module.

Tree Node

Tree Node to which this Job Code is associated.

Sal Plan (salary plan)

Salary administration plan to which this Job Code is associated.

Currency Code

Currency Code to which this Job Code is associated. Only one currency code can be associated with a business unit or SetID in PeopleSoft EPM.

Union Code

Union Code to which this Job Code is associated, if any.

FLSA Status

The classification of the Job Code under the U.S. Fair Labor Standards Act (FLSA), if any.

Base Pay Structure - Definition Page

Use the Base Pay Structure - Definition page (WA_PAYSTR1_TBL) to create a base pay structure ID, associate it with a job class, and select the method to use to develop the base pay structure.

Navigation

select Workforce Analytics, then select Base Pay Structure, then select Setup, then select Create Base Pay Structure, then select Base Pay Structure - Definition

Image: Base Pay Structure - Definition page

This example illustrates the fields and controls on the Base Pay Structure - Definition page. You can find definitions for the fields and controls later on this page.

Currency Code

When the Structure Type is Use Current Pay Structure, the Currency Code for the associated Salary Administration Plan defaults to this field.

For all the other Structure Type options, the system bases the Currency Code on the SetID base currency code.

Job Class ID

Select for this pay structure from the prompt list values. Valid values are from the WA_JOBCLS_TBL table.

Rate Type

Select the compensation frequency (Annual, Monthly, or Hourly) for the pay structure.

Pay Months/Year

The number of pay months per year defaults to 12.0. You can change this value.

Pay Hours/Year

The number of pay hours per year defaults to 2080. You can change this value.

Number of Grades

Use this field to enter the number of salary grades used to build the pay structure.

Base Pay Structure Type

When you select any of the four options in the Base Pay Structure Type group box, you activate different combinations of fields on the Base Pay Structure - Definition page.

The following table provides a summary of the options, the fields activated on the Definition page when you select the option, and the purpose for selecting the option.

Base Pay Structure Type	Fields Activated	Purpose
Use Current Pay Structure	Salary Plan ID Rate Type Pay Months/Year Pay Hours/Year Currency Code	This is the most frequently used option. Choose this option if you believe the pay structure currently in use is close to what you visualize for the new one, with a few changes. This enables you to copy the pay structure definition for an existing salary administration plan, and change or modify it as needed. It also enables you to use the existing grades and steps. The system calculates the minimum, midpoint, and maximum rates, the range width percentage, and the midpoint progression percentage for each grade.
Define Ranges-Number of Grades	Rate Type Pay Months/Year Pay Hours/Year Number of Grades Use Benchmarks For Range? Midpoint of Lowest Grade Midpoint of Highest Grade Midpoint Progression Type Change in Midpoint Progression (%) Range Width (%) Range Width Progression Type Change In Range Width (%)	Choose this option if there is market data available for the job codes involved, and you know how many grades you want in the pay structure. This option enables you to input the number of grades, the midpoint of the lowest and highest grades, the range width, the midpoint progression type, and the range width type. On the Base Pay Grades page, the system calculates the minimum, midpoint, and maximum rates, the range width percentage, and the midpoint progression percentage for each grade.
Define Midpoint Progression	Rate Type Pay Months/Year Pay Hours/Year Use Benchmarks For Range? Midpoint of Lowest Grade Midpoint of Highest Grade Midpoint Progression (%) Midpoint Progression Type Change in Midpoint Progression (%) Range Width (%) Range Width Progression Type Change In Range Width (%)	Choose this option if you know the percentage difference you would like to see between two successive grade midpoints. This option enables you to input the midpoint of the lowest and highest grades, the midpoint progression percentage and type, and the range width percentage and type. On the Base Pay Grades page, the system calculates the minimum, midpoint, and maximum rates, the range width percentage, and the midpoint progression percentage for each grade.
Define Single Rate Grades	Rate Type Pay Months/Year Pay Hours/Year Number of Grades Use Benchmarks For Range? Midpoint of Lowest Grade Midpoint of Highest Grade Midpoint Progression Type Change in Midpoint Progression (%)	Choose this option to create pay structures that are comprised of grades with no width. That is, there is no difference between the minimum rate, midpoint rate, and maximum rate for a particular grade. There can also be only one step in each grade. This option enables you to input the number of grades, the midpoint for the lowest and highest grades, and the midpoint progression type. On the Base Pay Grades page, the system calculates a single rate and the midpoint progression percentage for each grade.

Base Pay Structure Type

Fields Activated

Purpose

Use Current Pay Structure

Salary Plan ID

Rate Type

Pay Months/Year

Pay Hours/Year

Currency Code

This is the most frequently used option. Choose this option if you believe the pay structure currently in use is close to what you visualize for the new one, with a few changes.

This enables you to copy the pay structure definition for an existing salary administration plan, and change or modify it as needed. It also enables you to use the existing grades and steps.

The system calculates the minimum, midpoint, and maximum rates, the range width percentage, and the midpoint progression percentage for each grade.

Define Ranges-Number of Grades

Rate Type

Pay Months/Year

Pay Hours/Year

Number of Grades

Use Benchmarks For Range?

Midpoint of Lowest Grade

Midpoint of Highest Grade

Midpoint Progression Type

Change in Midpoint Progression (%)

Range Width (%)

Range Width Progression Type

Change In Range Width (%)

Choose this option if there is market data available for the job codes involved, and you know how many grades you want in the pay structure.

This option enables you to input the number of grades, the midpoint of the lowest and highest grades, the range width, the midpoint progression type, and the range width type.

On the Base Pay Grades page, the system calculates the minimum, midpoint, and maximum rates, the range width percentage, and the midpoint progression percentage for each grade.

Define Midpoint Progression

Rate Type

Pay Months/Year

Pay Hours/Year

Use Benchmarks For Range?

Midpoint of Lowest Grade

Midpoint of Highest Grade

Midpoint Progression (%)

Midpoint Progression Type

Change in Midpoint Progression (%)

Range Width (%)

Range Width Progression Type

Change In Range Width (%)

Choose this option if you know the percentage difference you would like to see between two successive grade midpoints.

This option enables you to input the midpoint of the lowest and highest grades, the midpoint progression percentage and type, and the range width percentage and type.

On the Base Pay Grades page, the system calculates the minimum, midpoint, and maximum rates, the range width percentage, and the midpoint progression percentage for each grade.

Define Single Rate Grades

Rate Type

Pay Months/Year

Pay Hours/Year

Number of Grades

Use Benchmarks For Range?

Midpoint of Lowest Grade

Midpoint of Highest Grade

Midpoint Progression Type

Change in Midpoint Progression (%)

Choose this option to create pay structures that are comprised of grades with no width. That is, there is no difference between the minimum rate, midpoint rate, and maximum rate for a particular grade. There can also be only one step in each grade.

This option enables you to input the number of grades, the midpoint for the lowest and highest grades, and the midpoint progression type.

On the Base Pay Grades page, the system calculates a single rate and the midpoint progression percentage for each grade.

Grade Range

Midpoint of Lowest Grade

The midpoint is the middle value in a pay range, halfway between the minimum and the maximum; it is calculated as (Minimum + Maximum) / 2. The field is populated in two ways, automatically by selecting the Use Benchmarks for Range check box, or manually, as described above. The values must correspond to the selected Rate Type.

Midpoint of Highest Grade

Use Benchmarks for Range?

When you select this check box, the system uses benchmark target market rates, for this job class, to populate the values for the Midpoint of Lowest Grade and Midpoint of Highest Grade fields with the lowest target market rate within the Job Class, and the highest target market rate within the job class, respectively.

If you do not select this check box, you must manually enter the corresponding annual, monthly or hourly values in the Midpoint of Lowest Grade and Midpoint of Highest Grade fields. The system uses these values to calculate the pay ranges, grades, and steps.

Progression

Midpoint Progression (%)

Enter the midpoint progression percent.

Midpoint progression is the distance from one midpoint to the next higher midpoint. Midpoint progression percentage is the percentage difference from one grade midpoint to the next higher-grade midpoint, and is calculated as (midpoint2 – midpoint1) / midpoint1.

Note: This field only displays if you select the Define Midpoint Progression option in the Base Pay Structure Type group box.

Range Width (%)

The range width is the distance between the range minimum and maximum. It is calculated as (Maximum – Minimum) / Minimum. Range Width (%) is not a required field, but if you do not enter a value the system calculates salary grades where the minimum rates, midpoint rates, and maximum rates are all equal.

Midpoint Progression Type

Select a type of Constant or Increasing.

With Constant midpoint progression, the progression is equal between all adjacent pairs of grades in the pay structure. The percentage difference between successive midpoints does not change.

With Increasing midpoint progression, the progression is larger as you move up each adjacent pair of grades in the pay structure. The percentage difference between successive midpoints increases by the percentage specified.

Change in Midpt Progressn (%) (change in midpoint progression percentage)

When you select a Midpoint Progression Type of Increasing, the Change in Mdpt Progressn (%) field is activated, enabling you to enter this value as a percentage.

Range Width Progression Type

Select a type of Constant or Increasing.

With Constant range width progression, the progression is equal between all adjacent pairs of grades in the pay structure. The system calculates the minimum and maximum values using the range width and midpoint values.

With Increasing range width progression, the progression is larger as you move up each adjacent pair of grades in the pay structure. The system calculates the minimum and maximum values using the range width and midpoint values. The value for the range width increases as you go up in grades, making the difference between the minimum and maximum greater.

Change in Range Width (%)

When you select a Range Width Progression Type of Increasing, the Change in Range Width (%) field is activated, enabling you to enter this value as a percentage.

Base Pay Structure - Grades Page

Use the Base Pay Structure - Grades page (WA_GRADE_TBL) to build the grades and ranges for your base pay structure using the specified parameters.

Navigation

select Workforce Analytics, then select Base Pay Structure, then select Setup, then select Create Base Pay Structure, then select Base Pay Structure - Grades

Image: Base Pay Structure - Grades page

This example illustrates the fields and controls on the Base Pay Structure - Grades page. You can find definitions for the fields and controls later on this page.

Use this page to review the effect of changes to the structure on the base pay grades, focus on the distance between midpoints of successive grades (midpoint progression), and evaluate the relative width of the ranges within grades. You can have the system calculate and enter the grade range and midpoint values, view the values calculated by the system, manually enter the values yourself, and manually revise specific values as needed.

Structure Type

If you have selected a Structure Type of Use Current Pay Structure for this pay structure, PeopleCode populates the data in the grid at the bottom of the page. If you have specified parameters on the Definition page, PeopleCode uses these parameters to populate the data in the grid.

Steps for Using This Page

To use this page:

Click the Build Grades button to generate the salary grades for this pay structure.
Change the values directly in the grid as necessary (optional).
Choose a power of ten for rounding the salaries (optional) and click the Apply Rounding button. The system rounds the salaries accordingly. The system recalculates the Range Width and Midpoint Progression columns to reflect the new values.
Enter a percentage for adjusting the salaries (optional) and click the Adjust Grades and Steps button. The system adjusts the salaries accordingly.

Using the Build Grades Button

Build Grades

Click this button to generate the salary grades for this pay structure. PeopleCode processing calculates the appropriate rates, range width and midpoint progression values for each grade, using the parameters you specified on the Definition page. The system populates the grid with these calculated values.

Using the Grade Range Grid to View and Edit Salary Rate Data

Once you have built your base pay grades, with their associated rates, range width, and midpoint progression values, use the grid to view and edit the data as needed. The system helps you by recalculating values when you make changes. Here are some examples of how this works:

When you input new or changed grades, the system leaves the remaining columns unchanged.
When you change the Range Width (%) or Midpoint Progression (%) values, the system automatically recalculates the Minimum, Midpoint, and Maximum Rate values.
When you input changes to the Midpoint Rate, the system recalculates the Minimum and Maximum Rate values. The value of the range width for that grade remains unchanged.
When you change the Minimum Rate value, the system recalculates the Maximum Rate and Range Width (%).
When you change the Maximum Rate, the system recalculates the Minimum Rate and Range Width (%).

Using the Adjust Grade and Step Rates Button

% to Adjust Rates and Adjust Grade and Step Rates

You can perform global adjustments to all the grade rates in the grid, and to the associated step rates in the Steps page, using the % to Adjust Rates field and the Adjust Grade and Step Rates button.

In % to Adjust Rates, enter the percentage amount you want to adjust the rates by. Enter a positive percentage to adjust the rates upward, or a negative percentage to adjust the rates downward.

Click the Adjust Grade and Step Rates icon. The system calculates the adjusted rates and displays the new results automatically. If the grades have associated steps, then the system also adjust the rates for the steps automatically.

Using the Apply Rounding Button

Round to Nearest

Once you have built your grades, modify the values to fit the standard rounding rules of your organization. Use the list of Translate table values in the Round to Nearest field to specify a rounding rule to apply to your data.

Click the Apply Rounding icon. The system rounds the salary rates accordingly. The system also recalculates the Range Width (%) and Midpoint Progression (%) columns to reflect the new numbers.

The output table that stores the data displayed in the grid is the WA_GRADE_TBL table.

Once you're satisfied with the salary grade structure you have created on this page, you have the option of moving to the Base Pay Structure - Steps page to create salary steps for your grades.

Base Pay Structure - Steps Page

Use the Base Pay Structure - Steps page (WA_STEP_TBL) to build, view, and revise salary steps for each pay grade within the base pay structure.

Navigation

select Workforce Analytics, then select Base Pay Structure, then select Setup, then select Create Base Pay Structure, then select Base Pay Structure - Steps

Image: Base Pay Structure - Steps page

This example illustrates the fields and controls on the Base Pay Structure - Steps page. You can find definitions for the fields and controls later on this page.

Entering the Number of Steps for the Grade

If you have selected a Structure Type of Use Current Pay Structureand the current pay structure has steps for this grade, then PeopleCode populates the steps and associated data in the Step Range grid at the bottom of the page. You can change these values as needed.

You can also build the steps manually.

To build steps manually:

Enter the number of Steps/Grade.
Select whether to build for the Current Grade Only, or for the Current and Following Grades by selecting the appropriate check box.

By selecting Current Grade Only, you can enter a different number of steps for each grade, or for any individual grade.

You can also enter the same number of steps for each grade by selecting Current and Following. Just navigate to the grade you want to use as the current grade. For example, if you want all the grades to have the same number of steps, select the first grade in the list as the current grade. Select the Current and Following Grades check box and click the Build Steps button. The system creates the same number of steps for the first grade and all grades below it in the list on the Grades page.
Click the Build Steps button. PeopleCode creates the steps in the Step Range grid at the bottom of the page.

Using the Step Range Grid

Step

You can change the Step designations if your organization uses something different from progressive whole numbers.

Hourly Rate, Monthly Rate, and Annual Rate

You can change the Hourly Rate, Monthly Rate, or the Annual Rate for a step. The system recalculates the other rates automatically, based on the values of Pay Months/Year and Pay Hours/Year specified on the Definition page.

Increment Hours and Increment Months

The Increment Hours and Increment Months columns identify when an employee's wages should automatically move up to the next salary step.

The output table that stores the data displayed in the grid is the WA_STEP_TBL table, whether the data is created by PeopleCode or input manually.

Once you have defined your base pay structure, the final step in the process is to assign a grade to each job code within a pay structure, using the Grade Assignment page.

Grade Assignment Page

Use the Grade Assignment page (WA_JOBGRADE_TBL) to assign a grade to each job code within a pay structure.

Navigation

select Workforce Analytics, then select Base Pay Structure, then select Setup, then select Assign Pay Grades, then select Grade Assignment

Image: Grade Assignment page

This example illustrates the fields and controls on the Grade Assignment page. You can find definitions for the fields and controls later on this page.

Using the Grade Assignment Grid

Job Code

The system places a row in the grid for each Job Code included in the Job Class for the selected Base Pay Structure. Any jobs for which there is market rate data are benchmark jobs.

Warning! To ensure the correct Job Codes populate the grid on this page, so that you can make grade assignments, it is essential that the Job Class and Base Pay Structure ID you specify when opening this page have the same effective date. The selected rows of data on the WA_JOBCLS_TBL and WA_PAYSTR_TBL tables must have the exactly the same effective date. If the Pay Structure has a row with an effective date that the Job Class does not have, the system displays no Job Codes for that particular effective date.

Viewing the Current Tab

On the Current tab you can view but not edit or change the following fields:

Salary Plan, Grade, and Grade Midpoint

For each job the system displays the current salary plan, salary grade, and annual Grade Midpoint rate information. Compare this data against the Market Rate and proposed salary rate information for the other grades.

Using the Proposed Tab

On the Proposed tab, edit the Grade and Step fields to perform your grade assignments. You can view the remainder of the fields.

Grade and Step

For each benchmark job, the system automatically assigns it to the pay grade (and entry step if applicable) having a midpoint that is arithmetically closest to the job's target market rate. Review these grade and step assignments, and choose to accept them, or override them if they need adjusting.

For non-benchmark jobs, the system has no market data and displays a Market Value of 0.00. Compare the current Grade Midpoint rate on the Current tab for a non-benchmark job to the proposed rates and target market rates for other job codes in the job class. Use this information to determine what you think is the best salary grade and step for that job. Then manually enter them in the Grade and Step columns. When you manually enter a new grade or step, and tab out of the field, the system automatically calculates the proposed Minimum Rate, Midpoint Rate, and Maximum Rate.

Market Value

System processing populates this field if the pay Structure Type is Current Pay Structure, and some or all of the job codes in the job class have associated market rates.

Variance % and Variance

For benchmark jobs, the system displays the variance between the Market Value and the Midpoint Rate to help you compare the two.