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This guide also applies to on-premise implementations

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8 Administer Workforce Compensation

This chapter contains the following:

Administer Workforce Compensation: Overview

Manage Worker Information

Run Batch Process

Manage Compensation Plans

Configure Global Compensation Settings

Manage Eligibility Profiles

Administer Workforce Compensation: Overview

Maintain the definitions of compensation plans and global models, maintain and update worker and plan information, run processes and review administration reports.

Compensation administrators can:

  • Update plan data.

  • Maintain currency rates and access to plans from the watchlist.

  • Run processes to initiate a compensation cycle, transfer data to the HR system, and refresh HR data.

Compensation managers can:

  • Create and manage models for use by line managers or by administrators to distribute compensation directly to workers.

  • Manage worker data by changing assignment data effective for the current plan cycle only.

  • Override line manager allocations, job changes, and performance ratings.

  • Analyze plan results.

To administer workforce compensation, select Navigator - Compensation.

Manage Worker Information

Reprocessing or Adding a Worker to a Plan After the Compensation Cycle Starts: Examples

You can reprocess an individual who was previously found eligible or ineligible and reevaluate eligibility for a plan. You can add to a plan a worker who was not originally found eligible. The following scenarios illustrate when you might want to reprocess or add a worker to a plan after the compensation cycle starts.

Worker Transfers Into an Organization

Maria transfers into your organization after the compensation cycle starts and might be eligible to receive compensation. Her eligibility for the plan and cycle is evaluated based on the plan and cycle you select. If the process finds Maria eligible for the compensation plan, it adds her to the appropriate manager's worksheet.

Worker's Data is Corrected in HR

Incorrect data in Michael's employment record causes him to be found ineligible for a compensation plan. HR corrects the data after the compensation cycle starts. When you reprocess Michael, the process reevaluates his eligibility based on the corrected data. If it finds Michael eligible, it adds him to the appropriate manager's worksheet.

Worker Leaves an Organization

Janice is eligible for compensation when a cycle starts. A week later, she leaves your organization and is no longer eligible for a compensation award. When you reprocess Janice, the process reevaluates her eligibility, finds her ineligible, and removes Janice from her manager's worksheet.

Contingent Worker Becomes a Regular Worker

Ravi, a contingent worker, is not eligible to receive compensation when a cycle starts, but manages workers who are eligible. At this time his processing status is Limited, which allows him only to allocate compensation and approve lower managers' worksheets. A few weeks later, Ravi becomes a regular worker and is now eligible to receive compensation. When you reprocess Ravi, the process reevaluates his eligibility and finds him eligible. Ravi's eligibility status changes to Eligible and the process adds him to the appropriate manager's worksheet.

FAQs for Manage Worker Information

What's a Limited to Normal processing method?

When a person is not eligible for a plan but has at least one subordinate worker who is eligible, the person's eligibility is Limited. The person can manage budgets and allocate compensation but not receive compensation within the plan. If the person becomes eligible for the plan after a cycle starts, you can add the person at that time. The processing method is called Limited to Normal. The person's eligibility changes from having limited participation in the plan to having full participation. The person is added to a manager's worksheet and can be allocated compensation.

Run Batch Process

Refresh Data Process: Points to Consider

The Refresh Data process synchronizes workforce compensation data with HR data, updates the plan design, updates the currency conversion rates, and recalculates the summary data. Choices you make when you run the refresh data process are:

  • Refresh date

  • Refresh options

Refresh Date

The refresh date determines the date used to refresh the data for the selected refresh options. Run the process as often as needed depending on your business needs. For example, you might refresh HR data and reevaluate eligibility nightly to ensure that line managers see the most up-to-date data including terminated workers, transfers, and other employment changes. On the other hand, you might refresh active plan data only after you make a change to the plan configuration. If you use HCM coexistence, consider refreshing data after you run the coexistence refresh process. Refresh dates are:

Actual Process Run Date

Use the date the process is run for all processing, including eligibility.

Plan Cycle Dates

Use the following two dates configured on the Plan Cycle dialog box:

  • Eligibility Determination Date for eligibility processing

  • HR Data Extraction Date for all other processing

Specific Date

Use a date you enter for all processing, including eligibility.

Note

Predefined alerts use the most appropriate date for the type of alert and are exempt from the Refresh Data processing. In addition, new salary ranges, new compa-ratio, and other metrics associated with a promotion to a new grade use the Promotion Effective Date.

Refresh Options

You can select one or more refresh options to process.

Note

Manual worksheet manager and worker eligibility changes revert to their original values unless you identify the changes you do not want overridden in the Administer Workers pages.

Refresh options are:

Refresh HR Data

Refreshes the following:

  • All person and HR-related data, except the worksheet manager

  • Dynamic columns that include the Refresh Data triggering event

  • Worksheet summary region totals

Refresh Base and Eligible Salary

Refreshes the following:

  • Base salary, salary basis, and salary range columns, and anything stored related to these fields, such as base salary frequency, adjusted salary, FTE salary, compa-ratio, and more

  • Local currency, if input currency was used

  • Default values for eligible salary

  • Dynamic columns that include the Refresh Data triggering event

  • Worksheet summary region totals

Refresh Manager Hierarchy

Refreshes the worksheet manager and rebuilds the hierarchy. Refreshes the worksheet summary region totals.

Reevaluate Eligibility

Reprocesses a worker's eligibility at the plan and the component levels. This may establish new eligibility. Refreshes the dynamic columns that include the Refresh Data triggering event. Refreshes the worksheet summary region totals.

Refresh Column Defaults

Refreshes the column defaults by running the following refresh options:

  • Refresh HR Data

  • Reevaluate Eligibility

  • Refresh Manager Hierarchy

  • Refresh Dynamic Columns

  • Refresh Summary Totals

Note

The process does not override existing column values that are not from HR and do not have a column default or dynamic calculation defined. The process does include recalculating an eligible salary that is derived using a formula or determined using a dynamic calculation.

Refresh Dynamic Columns

Refreshes the dynamic columns that include the Refresh Data triggering event. Refreshes the worksheet summary region totals.

Refresh Alerts

Refreshes the custom alerts that include the Refresh Data triggering event.

FAQs for Run Batch Process

What happens if I post single entries as components?

Each worker's salary adjustment is itemized into salary components. For example, you allocate 5,000 USD for a worker's Merit component, 2,000 USD for the Promotion Component and 1,000 USD for Adjustment component. When you post single entries as components, the Transfer Data to HR process posts an 8,000 base salary increase to the worker's salary record itemized into 5,000 USD for Merit, 2,000 USD for Promotion and 1,000 USD for Adjustment. If you do not post single entries as components, the Transfer Data to HR process posts an 8,000 USD increase to the worker's salary record without any record of the component division.

How can I process stock during a workforce compensation cycle?

Enter stock grants at the Stock Grant Details step when you run the Transfer Data to HR process. Select the worker population by defining the worker inclusion criteria at the Other Details step. The information is posted to the stock history table and is available in compensation history. You do not have to set up payroll elements.

Why do I not see my plan in the list of values for the Start Compensation Cycle process??

Your user role does not have access to view the plan. Check the Configure Plan Access task for the plan and verify the access for the compensation administrator role is not restricted. Also, verify that your user has the compensation administrator role or the proper security to run compensation batch processes.

Manage Compensation Plans

Workforce Compensation Setup: Critical Choices

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

  • Budgeting

  • Worksheet

  • Models and reports

Plan Foundation

Plan foundation configuration options are:

  • Plan currency

    If you have global plans in which workers are paid in different currencies you can enable currency switching. Managers can view data in a preferred currency, each worker's local currency, or in the corporate currency.

  • Plan access

    You can override the general access given to compensation administrator and compensation manager roles and limit who can access a plan from the line manager or administrative work areas to only those roles that you select. Compensation administrators have access to all plan configuration tasks for all plans. Compensation managers have access to the budget sheet and worksheets for all plans and worker administration tasks

  • Feedback survey

    You can ask managers up to five survey questions and allow them the opportunity to rate the overall compensation process when they submit their worksheets.

Budgeting

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

Worksheet configuration options are:

  • Components

    Plans must have at least one component if awarding compensation. You can create up to five components to represent the different types of compensation that you want to award within a plan. They can be the same type; for example, salary components such as merit and cost of living adjustments. Or they can be different types; for example, bonuses and stock options.

  • Performance ratings

    If you use performance ratings while allocating compensation you can display the latest ratings to the managers during the compensation cycle. You can allow managers to enter performance ratings during the compensation cycle to be used only in the compensation plan. Also, you can make performance ratings and documents completed in Oracle Fusion Performance Management available to managers from the worksheet. You can allow. managers to update the overall performance rating, overall goal rating, and overall competency rating in the compensation worksheet. Ratings updated in Performance Management automatically update in the worksheet and vice versa. You can give ratings for the first time in the worksheet as long as the performance document was created in Performance Management.

  • Compensation change statements

    You can create templates that managers use to generate compensation change statements for workers. You specify when statements can be generated and in what file format. You can enable statement groups to make different sets of statements available for different plans or plan periods. For example, you might create three templates containing the same message but in three different languages. You create a template group, add the three templates, and add the statement group to a plan.

  • Alerts

    You can alert managers of conditions on the worksheet, such as allocations that exceed target amounts, or worksheet data that is not in sync with HR data. You can also create custom alerts based on conditions you define using worksheet columns.

    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.

  • Worksheet display

    You determine the number and types of tabs to display in the worksheet, columns displayed on each tab, the order in which they display, available menu actions, and text instructions to the managers. You can import the entire worksheet configuration from another plan and then modify it for use in a new plan.

Models and Reports

Models and reports configuration options are:

  • Models

    Modeling enables managers to automatically allocate compensation to workers who meet certain criteria. You can enable modeling for managers and administrators, restrict modeling only to administrators, or disable it altogether. If modeling is enabled for managers, you can decide if they can create their own models or use only those created by compensation professionals. You decide how to apply the model results to the worksheet. You decide how to apply model results. The model can be applied as budget amounts, as target amounts or ranges, or as compensation amounts.

  • Reports

    You can enable a set of analytics for managers to use when allocating compensation. Reports are not configurable.

  • Report dimensions

    Reports use dimensions to group data. Models use dimensions as the criteria to build a model. If you enable reports or modeling you select the dimensions and range increments to use. You can create custom dimensions by configuring the custom columns available to models and reports.

Employment Records to Use: Points to Consider

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:

  • Primary assignments

  • All assignments

  • Employment terms

  • Any assignment or employment term with a salary

Primary Assignments

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.

All Assignments

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.

Employment Terms

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.

Any Assignment or Employment Term with a Salary

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.

Workforce Compensation Hierarchy Types: Points to Consider

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:

  • Approvals management structure

  • Line manager hierarchy

  • Formula

Approvals Management Structure

A set of approval relationships and rules used by the approvals management structure determines the hierarchy.

Line Manager Hierarchy

The line manager associated with the worker's assignment record determines the hierarchy.

Formula

A custom hierarchy created using a formula determines the hierarchy.

Compensation Hierarchy Determination Formula Type

The Compensation Hierarchy Determination formula determines the hierarchy for an associated workforce compensation plan.

You select the formula on the Configure Plan Details page.

Contexts

The following contexts are available to formulas of this type:

  • EFFECTIVE_DATE

  • HR_ASSIGNMENT_ID

Database Items

Database items related to Person, Assignment, Salary, and Element Entries are 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_ASSIGNMENT_ID

Number

Y

Assignment ID

CMP_IV_PLAN_ID

Number

Y

Plan ID

CMP_IV_PERIOD_ID

Number

Y

Period ID

CMP_IV_PLAN_START_DATE

Date

Y

Plan Start Date

CMP_IV_PLAN_END_DATE

Date

Y

Plan End Date

Return Values

Use the following predefined names for return variables, which are available to formulas of this type.


Return Value

Data Type

Required

Description

L_PERSON_ID

Number

Y

Person ID of manager

L_ASSIGNMENT_ID

Number

Y

Assignment ID of manager

Or


Return Value

Data Type

Required

Description

L_PERSON_NUMBER

Number

Y

Person number of manager

If the formula returns an invalid PERSON_NUMBER and the ASSIGNMENT_ID cannot be obtained, the following error is returned:

Formula passed in an invalid person number <15465857>. Assignment ID could not be obtained.

Sample Formula

This sample formula determines the manager of a person when the assignment_id is passed.

/*******************************************************************
FORMULA NAME : Compensation Hierarchy Determination Formula
FORMULA TYPE : Compensation Hierarchy Determination
DESCRIPTION  : Hierarchy determination fast formula which is based on assignment_id
*******************************************************************/ 

/*=========== INPUT VALUES DEFAULTS BEGIN =====================*/ 
INPUTS ARE CMP_IV_ASSIGNMENT_ID (number), CMP_IV_PLAN_ID (number), CMP_IV_PERIOD_ID (number)
/*=========== INPUT VALUES DEFAULTS ENDS======================*/ 

/*================ FORMULA SECTION BEGIN =======================*/ 
                          
      DEFAULT FOR CMP_IV_ASSIGNMENT_ID IS 0
    
      L_PERSON_ID = '0'
      L_ASSIGNMENT_ID = '0'
      
      if ( CMP_IV_ASSIGNMENT_ID = 100000008154060 ) THEN
      (
       L_PERSON_ID = to_char(-999)    //-999 indicates top level 
//Manager.
       L_ASSIGNMENT_ID = to_char(-999)
      )
      ELSE
      (
       L_PERSON_ID = to_char(100000008153756)
       L_ASSIGNMENT_ID = to_char(100000008154060)
      )                      
      
      RETURN L_PERSON_ID , L_ASSIGNMENT_ID

/*================ FORMULA SECTION END =======================*/

Actions and Reasons, Salary Components and Plan Components: How They Work Together

Salary components and plan components work with actions and reasons to classify compensation transactions.

This figure shows how the salary components and plan components work with actions and reasons to classify compensation transactions.

Flow of action, reasons, and components in compensation.

Actions and Reasons

When you set up a workforce compensation plan, you must select an action and optional action reason that are associated with all salary and assignment records when you transfer data to HR after the cycle is complete. This is the same action framework used by other HR transactions.

For example, you might have a plan where managers allocate merit increases only. The action for the plan could be Allocate Workforce Compensation. The action reason could be Merit. When the batch process updates salary records after the compensation cycle is over, the Allocate Workforce Compensation action and Merit action reason appears in the worker's history for that salary record.

One action and ten action reasons are provided to use with workforce compensation plans. You can extend this list to add additional actions and reasons. The Action provided is Allocate Workforce Compensation. Action reasons provided are:

  • Anniversary

  • Career Progression

  • Cost of Living Adjustment

  • Market Adjustment

  • Mass Adjustment

  • Merit

  • Outstanding Performance

  • Performance

  • Periodic Review

  • Promotion

Individual salary transactions also have an action and optional action reason associated with them. The action and action reason identify the reason for the salary adjustment. If you adjust the salary while promoting the worker or if the worker is relocated, for example, the action may be Transfer or Relocation and the action reason would be the same. If a compensation or HR specialist adjusts the worker's salary, the action reason could be Change Salary and the reason could be Adjustment. Similarly, salary adjustments made during a workforce compensation cycle would have an action of Allocate Workforce Compensation and optionally, one of the reasons listed above.

Salary Components

A worker's salary record may be itemized using salary components to associate an adjustment amount with a specific reason.

For example, a manager might determine a worker's salary adjustment in this way.


Salary Component

Change Percentage

Change Amount (USD)

Merit

5

$5,000

Cost of Living Adjustment

2

$2,000

Promotion

1

$1,000

Total Adjustment

8

$8,000

The worker's salary total salary increase is $8,000 USD and the salary record stores the itemization of that eight percent into the components shown.

Some commonly used salary components predefined in the Salary Component lookup type. You can also add new components to the lookup at any time.

Workforce Compensation Plan Components

A workforce compensation plan must have at least one component when you allocate compensation. Plan components represent compensation being awarded in the plan. Components can be the same type of compensation, such as Merit, Cost of Living Adjustment, and Market Adjustment that all adjust a worker's salary. Components can also be different types of compensation within the same plan, such as Salary, Bonus, and Stock. Plan components that capture salary adjustments are posted as salary. Optionally, you can associate a plan component that represents a salary change with a specific salary component.

For example, you might have a plan where managers allocate Merit and Market Adjustments at the same time. Merit and Market Adjustments are the names of the components set up for the workforce compensation plan. These names are informational only. When you update worker salary records with their new salaries, you can retain an itemization of amounts allocated for each plan component. You would configure the Compensation Amount column using the Element Mapping tab on the Configure Column Properties dialog this way:


Plan Component

Post as Salary

Salary Component

Merit

Yes

Merit

Market Adjustment

Yes

Market

If you do not indicate a salary component to map to, the sum of all components identified to be posted as salary are posted as a single salary adjustment amount to worker salary records.

For example, a manager might allocate salary increases in this way during the compensation cycle.


Plan Component

Change Percentage

Change Amount (USD)

Merit

5

$5,000

Market

1

$1,000

Total Adjustment

6

$6,000

When the process runs to transfer approved salary adjustments to worker salary records, it can post the individual components, therefore storing the five percent and one percent adjustments to the Merit and Market components, or it can post just the total salary adjustment of $6,000, if no components are mapped to the plan components.

Salary Component Lookups: Explained

Salary components itemize new or adjusted salary into one or more components that reflect different reasons for the allocation. You can edit or add components to the Salary Component lookup type during initial implementation and at any later time.

The following salary components are predefined:

  • Merit

  • Cost of Living

  • Adjustment

    General adjustment

  • Market

    Adjustment due to salary being out of line with the market

  • Structured

    Adjustment dictated by union or employment contract, such as an increase after three months

  • Equity

    Adjustment to correct salary compression or inversion

  • Promotion

  • Location

  • Progression

    Regular and automatic adjustment

To add to or edit these codes in the CMP_SALARY_COMPONENTS lookup type, use either the Navigator or Administration menu to go to the Setup and Maintenance work area and search for the Manage Common Lookups task in the Search: Tasks pane or All Tasks tab search area.

Note

Component itemization is for notification purposes only. When component values change, the payroll element holds the new salary value calculated from the component adjustment. Individual component values are not sent to payroll for processing.

Plan Statuses: Explained

Plan status identifies the state of the plan and any plan cycles already started or completed.

The two plan statuses are:

  • Active

  • Inactive

Active Plan Status

The plan is available for use and you can start a plan cycle. Line managers can access the plan from the workforce compensation work area at any time during the period that worksheet is available to managers. Compensation managers can access the plan from the administration work area to view plan data even after the data is transferred to HR.

Inactive Plan Status

The plan is no longer available for use and is not available to view or update. Compensation administrators can change the status back to Active from the Configure Plan Details page. Use this status to create and test plans, or for obsolete plans. Only plans with this status can be purged from the system.

Plan Cycle Dates: Explained

Plan cycle dates are the dates within a workforce compensation plan cycle that determine access, eligibility, and more. A plan can have multiple plan cycles, each with a unique set of dates.

You can configure several dates for a plan cycle in the Create or Edit Plan Cycles dialog box.


Date

Description

Evaluation Period Start and End

Period in which you evaluate for compensation. This appears in the hover window when you mouse over the plan name on the Compensation Plans page. It is informational only.

Plan Access Start and End

Period in which managers can see active plans in read-only mode.

Worksheet Update Period Start and End

Period in which managers can update active plans.

HR Data Extraction

Date on which the application initially extracts person and assignment data from HR and places it in the compensation tables for use during the compensation cycle.

Eligibility Determination

Date on which the application evaluates workers' records for eligibility.

Currency Conversion

Date on which the application obtains conversion rates from the GL daily rates table used to convert monetary amounts into different currencies.

Performance Rating

Date to use for compensation performance ratings. If you use the same date in multiple plans, when managers give compensation performance ratings, the same ratings are available to all those plans.

Promotion Effective

Date on which job, grade, and position changes take effect. If you use the same date in multiple plans, the promotions are available across all of those plans when managers promote workers. Managers can override this date in the worksheet or you can set the date when running the Transfer Data to HR process.

Default Due

Date by which all worksheets are to be submitted. It is informational only.

Promotion Effective Date in Workforce Compensation: Explained

You can define a default effective date for all workers who are promoted through a workforce compensation plan. You can enable managers to override the default date for individual workers they promote during the compensation cycle. The default effective date is used to obtain new salary range, new compa-ratio, and other new salary metrics when a promotion involves a change to a worker's grade.

To define the Promotion Effective Date configure the following:

  • Default promotion effective date for the plan cycle

  • Worksheet column properties of the Promotion Effective Date column

Configuring the Default Date for the Plan Cycle

When you set up a plan, you configure the default promotion effective date on the Create Plan Cycles dialog box. The Promotion Effective Date column uses this default date for all workers in the worksheet.

Configuring the Worksheet Column Properties

You can display the Promotion Effective Date column in the worksheet. When you configure the column properties for the Promotion Effective Date column on the Configure Column Properties dialog box you can:

  • Enable managers to override the default date for individual workers they promote during the compensation cycle

  • Specify whether the Promotion Effective Date column is subject to refresh by the Refresh Data process

    This table compares the refresh results when the promotion effective date column is subject to refresh and when it is not:


    Subject to Refresh

    Description of Refresh Processing

    Yes

    When a manager has overridden the default promotion effective date, the Refresh Data process changes the worksheet column date back to the default promotion effective date set for the plan cycle. The process then uses the date to refresh the new salary metrics.

    No

    The Refresh Data process uses the date in the worksheet column to refresh the new salary metrics. The date in the worksheet column is either the default promotion effective date for the plan cycle or a manager's overriding date.

Initiating Budgets: Points to Consider

You can distribute initial budgets for one or more managers in the hierarchy. When the budget is zero or null, managers have read-only access to their budgets. A null budget contains no value. A zero budget means no amount is budgeted. You can initiate a budget by three methods:

  • Initiate budgets manually

  • Initiate budgets automatically by running the Start Compensation Cycle process

  • Use a model to distribute budgets

Initiating Budgets Manually

You can initiate budgets manually on the Budget Pools page by switching to the manager whose budget you want to initiate and clicking the Adjust Budgets button.

You can initiate budgets manually for the first time or adjust budgets previously initiated for a selected manager using the Adjust Budgets dialog box on the Budget Pools page. The budget amount can be a flat amount or a percentage of total eligible salaries. The selected manager receives the budget amount you initiated or modified.

Running the Start Compensation Cycle Process

When you create a budget pool you can choose to automatically publish budgets. The Start Compensation Cycle process automatically distributes budget amounts or budget percentages based on the default values you configured for the Budget Distribution Amount or Budget Distribution Percentage columns on the Detail Table tab, or the Budget Amount or Budget Percentage columns on the Configure Budget Page Layout page.

If you chose manager level budgeting for the budget pool, the Start Compensation Cycle process automatically distributes budget amounts to all managers with at least one lower level manager under them. Managers can immediately begin allocating compensation to their workers

If you chose worker level budgeting for the budget pool, the start compensation cycle process automatically distributes at the worker level. The budget amount or budget percentage you configured on the worker list tab populates for each worker. Manager level budgets are calculated from the sum of the individual worker budgets.

Using a Model to Distribute Budgets

You can build a global model or use an existing model to distribute budget amounts for the first time based on the model criteria. After you preview the model results, you apply the results as budget amounts to all managers in the model population.

Local Currency Determination: Points to Consider

If you have global plans in which workers are paid in different currencies, you must select how each worker's local currency is determined for each component.

  • Corporate currency

  • Element input currency

  • Legal employer currency

  • Salary basis currency

  • Formula

Corporate Currency

The corporate currency defined for the plan determines the local currency.

Element Input Currency

The input currency of the payroll element mapped to the component determines the local currency.

Legal Employer Currency

The currency defined by the worker's legal employer determines the local currency.

Salary Basis Currency

The payroll element associated with the salary basis definition linked to the worker's employment record determines the local currency.

Formula

A formula you create to retrieve the currency from some other source determines the local currency.

Compensation Currency Selection Formula Type

The Compensation Currency Selection formula determines the currency associated with a workforce compensation component.

You select the formula on the Configure Compensation Components page.

Contexts

The following contexts are available to formulas of this type:

  • EFFECTIVE_DATE

  • HR_ASSIGNMENT_ID

Database Items

Database items related to Person, Assignment, Salary, and Element Entries are 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_PLAN_ID

Number

Y

Plan ID

CMP_IV_ASSIGNMENT_ID

Number

Y

Assignment ID

CMP_IV_PERIOD_ID

Number

Y

Period ID

CMP_IV_COMPONENT_ID

Number

Y

Component ID

CMP_IV_PLAN_START_DATE

Date

Y

Plan Start Date

CMP_IV_PLAN_END_DATE

Date

Y

Plan End Date

Return Values

Use predefined names for return variables. The following return variables are available to formulas of this type.


Return Value

Data Type

Required

Description

L_CURR_CODE

Char

N

Currency code from the formula

Sample Formula

This sample formula determines if a person is selected for a plan based on their assignment_id.

/*******************************************************************
FORMULA NAME : Compensation Currency Selection Formula
FORMULA TYPE : Compensation Currency Selection 
DESCRIPTION  : It returns the currency code based on 
  component_id.
*******************************************************************/

/*=========== INPUT VALUES DEFAULTS BEGIN =====================*/ 
INPUTS ARE CMP_IV_ASSIGNMENT_ID (number), CMP_IV_PLAN_ID (number), CMP_IV_PERIOD_ID (number), CMP_IV_COMPONENT_ID (number)
/*=========== INPUT VALUES DEFAULTS ENDS======================*/

/*================ FORMULA SECTION BEGIN =======================*/ 
                          
      DEFAULT FOR CMP_IV_COMPONENT_ID IS 0
      
      l_curr_code = 'XXX'
      
      IF (CMP_IV_COMPONENT_ID = 489) THEN
      (
       l_curr_code = 'USD'
      )
      ELSE IF (CMP_IV_COMPONENT_ID = 490) THEN
      (
       l_curr_code = 'GBP'
      )
      
      RETURN l_curr_code      

/*================ FORMULA SECTION END =======================*/

Performance Ratings: Points to Consider

If you consider performance ratings when allocating compensation you can display ratings from Oracle Fusion Performance Management or rate workers during a workforce compensation cycle. You can use performance ratings in the worksheet in the following ways:

  • Display Performance Management ratings

  • Rate workers within Workforce Compensation

  • Use both Performance Management ratings and compensation ratings

Display Performance Management Ratings

If you integrate with Performance Management, you can display overall and calculated performance ratings given in the Performance Management system and provide access to the full performance document from within the worksheet. You select the performance template or document name and the period to make available, and whether to display only completed ratings or ratings in any status. The performance template is not required. Also, you have the option to update the overall performance rating, overall goal rating, and overall competency rating in the compensation worksheet. Ratings updated in Performance Management automatically update in the worksheet and vice versa. You can give ratings for the first time in the worksheet as long the performance document was created in Performance Management. You can also display the Performance Rating History column in the worksheet to see historical ratings given in the Performance Management system.

Rate Workers Within Workforce Compensation

Managers can rate workers as they allocate compensation. These ratings are used only within the current compensation plan and cycle. The ratings are not transferred to the Performance Management system or to HR. When you set up a plan, you can select a rating model to use, or you can navigate to the Manage Rating Model page to edit an existing rating model or create a new one. You can also decide how managers rate performance, either by selecting the rating from a list of values or by designating the number of stars to represent the worker's rating. You can display compensation ratings given in the previous plan cycle as a column in the worksheet.

Use Both Performance Management Ratings and Compensation Ratings

You can choose to display both Performance Management ratings and compensation ratings in the worksheet. For example, if you gave Performance Management ratings several months before the compensation cycle starts you might want managers to reassess their worker' performance to ensure that current performance is consistent with past performance. You can set up the plan to display the ratings given in the Performance Management system and also enable managers to give compensation ratings during the compensation cycle as a point of comparison. You can view reports and analytics by both rating types and you can use both rating types as criteria for models.

Configuring Approvals: Critical Choices

The hierarchy type defined for the plan determines the approvals hierarchy. You can create an alternate approval hierarchy for a manager that overrides the plan hierarchy if you want approvals to occur in a different sequence or by different people. You also specify the timing when managers can submit their worksheets for approval and when they can approve their lower managers' worksheets. Choices to make when configuring approvals are:

  • Approval mode

  • Submit mode

  • Alternate approver hierarchy

Approval Mode

Approval mode identifies when managers can approve their lower managers' worksheets. The first option, Approve anytime, allows managers to approve their lower managers' worksheets at any time during the period the worksheet is available to them. The second option, Manager must first submit, means that lower level managers must submit their worksheets upward for approval before a higher level manager can approve them. This ensures that higher managers do not approve worksheets before lower managers have had time to complete them.

Submit Mode

Submit mode identifies when managers can submit their worksheets. The first option, Submit anytime, allows managers to submit their worksheets at any time during the period the worksheet is available to them. The second option, All managers must be approved, means that all lower level managers' worksheets must be approved before a higher level manager can submit his own worksheet for approval. This ensures that higher managers review and approve allocations of lower managers before submitting allocations for their entire organization for approval.

Alternate Approver Hierarchy

By defining alternate approvers, you replace the standard approval hierarchy for a manager with a new set or sequence of approvers. The alternate approver does not have to be a part of the regular plan hierarchy. You can create multiple approvers for the same manager by identifying the specific individuals and using the approval sequence to determine the order in which approvals occur. The highest sequence is the final approver. Alternate hierarchies are commonly used when approval control transitions from managers to the HR department.

Alternate Approver Hierarchy: Examples

The hierarchy type defined for the plan determines the approvals hierarchy. You can create an alternate approval hierarchy for a manager that overrides the plan hierarchy for specific line managers if you want approvals to occur in a different sequence or by different people. The following scenarios illustrate how you can create different alternate approval hierarchies. In the diagrams, the blue represents the plan hierarchy and the yellow the new, alternate hierarchy.

Alternate Approver Hierarchy at the end of the Approval Process, Bypassing the Final Approver

Carlos, the CEO, does not want to see or approve the final worksheet. After Sara submits her worksheet you want it to go to the HR manager.

Here is how you build the alternate approver table:


Worksheet Manager

Approval Sequence

Alternate Approver

Carlos

1

Maria

This figure shows that the HR Manager is the final approver, bypassing the CEO.

HR manager is the final approver, bypassing the CEO

Alternate Approver Hierarchy in the Middle of the Standard Hierarchy, Overrides Rest of Hierarchy

James reports officially to Vijay. However, James' entire team did a special project for Lakshmi most of the past year. Sara wants Lakshmi to review and approve the compensation for James' team. After Lakshmi approves James' worksheet, it can go directly to HR for processing.

Here is how you build the alternate approver table:


Worksheet Manager

Approval Sequence

Alternate Approver

Lakshmi

2

Maria

James

1

Lakshmi

This figure shows that, after Lakshmi approves James' worksheet, the worksheet goes directly to the HR Manager for final approval, bypassing the rest of the plan hierarchy.

Lakshmi approves Jame's worksheet, then worksheet goes directly to HR manager, bypassing rest of plan hierarchy

Alternate Approver Hierarchy in the Middle of the Standard Hierarchy, Returns to the Standard Hierarchy

James reports officially to Vijay. However, James' entire team did a special project for Lakshmi most of the past year. Sara wants Lakshmi to review and approve the compensation for James' team. Sara wants to approve the worksheet after Lakshmi is finished.

Here is how you build the alternate approver table:


Worksheet Manager

Approval Sequence

Alternate Approver

Carlos

4

Maria

Sara

3

Carlos

Lakshmi

2

Sara

James

1

Lakshmi

This figure shows that, after Lakshmi approves James' worksheet, the worksheet returns to the plan hierarchy approval flow.

Worksheet returns to the plan hierarchy approval flow after Lakshmi approves James' worksheet

Predefined Alerts: Explained

You can use predefined alerts to notify managers about issues on the worksheet that need their attention.

Predefined Alerts

Conditions on the worksheet or changes in HR trigger predefined alerts.


Predefined Alert

Trigger

Salary changed in HR

Salary amount changed in HR

Allocation outside target range

Compensation amount is less than the target minimum or greater than the target maximum configured on the Configure Worksheet Page Layout page

Grade changed in HR

Grade changed in HR

Worksheet manager does not match line manager

Worksheet manager does not match line manager on the worker's employment record

New salary outside salary range

New salary amount is less than the salary range minimum or greater than the salary range maximum for their current grade

Worker was terminated

Worker was terminated in HR

Creating Custom Alerts: Worked Example

This example demonstrates how to create a custom alert that displays a warning on the worksheet when a manager allocates a bonus amount that is more than the recommended bonus amount.

The following table summarizes key decisions for this scenario.


Decisions to Consider

In This Example

What worksheet actions do you want to trigger the alert?

Manager allocates a bonus amount that is more than the recommended bonus amount.

What type of alert do you want to display?

Warning

Creating the Custom Alert

  1. On the Configure Alerts page, Custom Alerts region, click the Add icon.
  2. In the new row complete the fields as shown in this table.

    Field

    Value

    Name

    Bonus exceeds maximum recommended amount

    Type

    Warning

    Description

    You allocated more than the recommended bonus amount


  3. Click the Define Condition that Displays Alert on Worksheet icon.
  4. On the Edit Condition dialog box, Basic tab, click Build Condition.
  5. Complete the fields as shown in this table.

    Field

    Value

    Column

    Bonus Amount

    Operation

    Is greater than


  6. Click Switch to Column.
  7. Select Bonus Target Amount.
  8. Click Done.
  9. Click Validate. This step is optional.
  10. Click OK in the confirmation.
  11. Click Apply.

Testing the Custom Alert

  1. Click the Test Custom Alert Condition icon.
  2. On the Test Condition dialog box complete the fields as shown in this table.

    Field

    Value

    Bonus Amount

    5000

    Bonus Target Amount

    2000


  3. Click Test.
  4. Verify that the results are as expected in the Review Results dialog box and click Done.

Worksheet Tab Types: Explained

Tab types control the display of information on a worksheet page, which consists of one or more tabs. The information on each tab varies by the tab type. You can define up to 10 tabs for each worksheet when you configure the worksheet display. Commonly used columns are enabled by default for each tab type, to make implementation easier.

You can display the same set of columns in the details section of any tab type, except for the approvals and communicate tab types. The compensation, performance, and promotions tab types have summary tables and graphs specific to the focus of the tab. However, you can also give performance ratings and promotions on the compensation tab type and make compensation allocations on the performance and promotion tab type, when you want to combine tasks into a single tab. The detail table columns are organized into these groups:


Group Name

Information Displayed

Personal

Worker personal information such as name, email address, assignment manager and country.

Alerts

Alerts to notify managers of situations that need attention.

Employment

Assignment or employment term details, such as hire date, work location, working hours, manager name, job, grade, and person number.

Salary Information

Base pay information, such as the current salary, annualized full-time salary, current compa-ratio, current quartile.

Component 1 through 5

Information that is specific to a component, such as eligible salary, compensation amount, percentage of eligible salary, units, target amounts, and effective date. You can configure up to five components for a plan. The same set of columns is available for each component.

Promotion

Information related to job, grade, or position changes given during the compensation cycle, such as new job, new grade, new position, new salary range minimum, midpoint, and maximum, and promotion effective date.

Performance

Performance ratings given in Oracle Fusion Performance Management or during the current or previous compensation cycle, such as overall performance rating, calculated goal rating, worker potential, and risk of loss.

Custom Columns

Any type of information you can configure. Use custom columns 1-15 to display text. Use columns 16-45 to display numeric data. Use columns 46-50 to create custom lists from which managers can select a value.

When you set up the plan, you enable the tab types that are relevant to what managers do during the compensation cycle. Worksheet tab types are:

  • Compensation

  • Approvals

  • Communicate

  • Performance

  • Promotions

  • Detail table only

Compensation Tab Type

Use this tab to manage and allocate compensation. It contains a summary table that displays high-level information about each component in the plan. For each component in the plan, the summary section can display the number of eligible and ineligible workers, allocation totals, and budget totals. Select the components that you want to appear in the summary section to create different tabs on which managers can focus on awarding different types of compensation.

You can also sum the data for components selected to display in the summary section Select the components you want to appear in the summary table of the compensation type tab and choose to sum the data for all selected components within the plan in the summary table. However, if the components use different units of measure the totals will be inaccurate. You can expand the summary section for each component to view analytics, which provides a snapshot of allocations in the current cycle.

Approvals Tab Type

This tab is included only in the worksheets for managers with at least one lower-level manager. Higher managers use it to view the status of lower manager's worksheets, approve or reject submitted worksheets, or request additional information. You can enable up to seven additional subtabs that display summarized information for each lower manager.

When a column contains the number of workers or a percentage, you can drill down to see details about the workers.

This table describes the subtabs and what they display.


Subtab

Information Displayed

Approvals

All lower-level managers and the status of their worksheets. This subtab is always enabled when the approvals type tab is enabled.

Compensation Overview

Number of workers awarded compensation during the cycle, the total amount allocated, and the total available budget.

Allocation Statistics

Five second-level subtabs displaying average allocation, allocation spread, as well as allocations by overall performance rating, compensation performance rating, and country.

Salary Analysis

Six second-level subtabs displaying averages by salary, compa-ratio, salary range position, quartile, quintile, and total salary.

Target Analysis

Three second-level subtabs displaying allocations compared to defined targets and target ranges.

Promotions

Number of workers whose job, grade, or position was changed during the compensation cycle.

Performance

Seven second-level subtabs displaying allocations by overall ratings, goal ratings, competency ratings, as well as calculated ratings.

Alerts

Shows all the alerts currently triggered and enables managers to view the affected workers.

Communicate Tab Type

Use this tab to generate compensation statements for workers to notify them of their new or adjusted compensation, performance rating, or promotion.

Performance Tab Type

Use this tab to give new performance ratings, or view existing performance ratings given either during a previous workforce compensation cycle or in Oracle Fusion Performance Management. The summary displays the number and percentage of workers for each rating, as well as the target distribution if one is defined for the rating model used.

Promotions Tab Type

Use this tab to view and update the job, grade, or position. The summary displays information within nine subtabs:

  • By Team

  • By Country

  • By Business Unit

  • By Department

  • By Proposed Job

  • By Years in Job

  • By Performance Management Rating

  • By Compensation Performance Rating

  • By Custom Text Column 1

  • Organizational Averages

Detail Table Only Tab Type

This tab displays only the detail table without any summary information. Use it when summarized information is not appropriate. For example, you could set up a plan to capture information from managers or distribute data to managers where compensation is not allocated, performance ratings are not used, and promotions are not given.

Worksheet Tab Types: Examples

You use the worksheet tab types to display a variety of information, depending on what tab type you include in the worksheet and what columns you enable when you configure the worksheet display.

Restriction

You must enable and configure at least one tab type if you want managers to access their worksheets. Also, if your plan requires approvals you must enable and configure an Approvals tab type.

The following scenarios illustrate how you can use the tab types to design different compensation plans.

Using Two Compensation Type Tabs to Allocate Merit and Stock Awards

You create a plan that enables managers to award merit adjustments and stock during the same compensation cycle. Next you enable two compensation type tabs, labeling the first Merit Adjustments and the other Stock Awards.

On the Merit Adjustments tab, you enable:

  • Columns with information that managers require to make informed salary decisions, such as current base pay, eligible salary, current and new compa-ratio, quartile, salary range low, and salary range high.

  • The merit adjustment amount column so managers can enter adjustment amounts.

On the Stock Awards tab, which includes columns such as job, length of service, or any company-specific measures or calculations that affect a manager's stock allocation decision, you enable the stock amount column.

In the summary table of each tab, you set the corresponding component to only display. The rolled-up merit information appears on the Merit Adjustments tab and the rolled-up stock details appear on the Stock Awards tab.

Using One Compensation Type Tab to Allocate Merit and Bonus Awards, View Performance Ratings, and Promote

You create a plan that enables managers to award merit adjustments and bonuses, as well as promote workers, during the same compensation cycle. Next you enable one compensation type tab, labeling it Compensation Awards. On this tab, you enable:

  • Columns with information that managers require to make informed salary decisions, such as current base pay, eligible salary, current and new compa-ratio, quartile, salary range low, salary range high, and performance rating, as well as columns that contain information needed to allocate stock.

  • The merit adjustment amount and bonus amount columns so managers can enter amounts.

  • The job, new job, grade, and new grade columns so that managers can see their workers' current jobs and grades and promote workers to a new job or grade.

The summary table will include rolled up information about both the merit and bonus award.

Using the Performance Type Tab, Promotion Type Tab, And Compensation Type Tab to Rate Performance, Promote, and Allocate Merit

You create a plan that enables managers to rate worker performance, promote workers by changing their job, grade, or position, and award merit increases during the same compensation cycle. Next, you enable a performance type tab, labeling it Rate Performance, a promotions type tab, labeling it Promote Workers, and a compensation type tab, labeling it Allocate Compensation.

On the Rate Performance tab you enable:

  • Columns related to a worker's performance such as their length of service, job, grade, last rating date, last rating.

  • The performance rating column.

Note

Performance ratings that you enter during a compensation cycle are used only within the compensation process and are not used outside the compensation tool.

On the Promote Workers tab you enable columns that help managers promote workers, such as time in grade, time in job, performance rating, potential, current job, current grade, current position, new job, new grade, and new position. You configure summary subtabs related to team, proposed job, performance, and organizational averages.

On the Allocate Compensation tab you enable:

  • Columns with information that managers require to make informed salary decisions, such as eligible salary, current base salary, new base salary, current and new compa-ratio, quartile, salary range low, and salary range high.

  • The merit adjustment amount and merit adjustment percentage columns so that managers can enter amounts and percentages.

Plan Setup Dependencies: Critical Choices

When you set up a workforce compensation plan you enable features and select worksheet actions. Some of these choices have dependent selections you should make.

Task Dependencies

This table lists the workforce compensation plan task you enable and the corresponding dependency, along with the workforce compensation pages for the selections.


Task and Page

Dependent Selection and Page

Enable Oracle Performance Management (Configure Performance Ratings)

Enable at least one performance management rating column (Configure Worksheet Page Layout: Detail Table tab)

Enable Compensation Management Ratings (Configure Performance Ratings)

Enable at least one compensation performance column (Configure Worksheet Page Layout: Detail Table tab)

Enable compensation components (Configure Compensation Components)

Configure related components (Configure Worksheet Page Layout: Detail Table tab)

Enable a predefined or custom alert (Configure Alerts)

Enable Alert column (Configure Worksheet Page Layout: Detail Table tab)

Enable compensation change statements (Configure Compensation Change Statements)

Enable the Communications tab type (Configure Worksheet Page Layout)

Enable compensation type tab (Configure Worksheet Display)

Enable Components and create at least one component (Configure Compensation Components)

Enable a column that adjusts salary (Configure Worksheet Page Layout: Detail Table tab)

Enable at least one component to be posted as salary (Configure Worksheet Page Layout: Detail Table tab, Configure Column Properties dialog box, Element Mapping tab)

Enable budgeting and create a budget pool (Configure Budget Pools)

Enable components and create a component linked to the budget pool (Configure Compensation Components)

Action Menu Dependencies

When you configure the worksheet page layout for a plan, you select the actions that managers can take on the worksheet. Some of the actions require selections on other workforce compensation pages as shown in the following table.


Action on the Configure Worksheet Page Layout: Actions Menu Tab

Dependent Selection and Page

Enable ranking actions

Enable rank column (Configure Worksheet Page Layout: Detail Table tab)

Enable view compensation history action

Enable compensation history column (Configure Worksheet Page Layout: Detail Table tab)

Enable view notes action

Enable notes column (Configure Worksheet Page Layout: Detail Table tab)

Enable apply targets action

Enable the target column for at least one component (Configure Worksheet Page Layout: Detail Table tab)

Enable targets action

Enable and configure the target column for at least one component (Configure Worksheet Page Layout: Detail Table tab)

Enable hide ineligible workers action

Configure eligibility task (Configure Plan Eligibility) or Add a eligibility profiles to any component (Configure Worksheet Page Layout: Detail Table tab, Configure Column Properties dialog box)

Enable at least one modeling action

Enable modeling (Configure Modeling)

Enable view currency conversion rate table action

Enable currency switching (Configure Currency)

Configuring Column Properties: Points to Consider

Use the Configure Column Properties dialog box to configure a column's properties. You can configure column properties for the summary and detail table columns on the Configure Worksheet Page Layout page and for the summary, detail table, and worker list columns on the Configure Budget Page Layout page.

The number of tabs that appear on the dialog box vary depending on the column you are configuring. The tabs are:

  • General

  • Visibility and Access

  • Default Values

  • Element Mapping

  • Information

General Tab

The options available on the General tab vary depending on the type of column you are configuring and the selections you make on the tab. They control the display and storage of data. The values that may display are:

  • Data Type

  • Rounding Rule

  • Decimals to Display

  • Show Numeric Separators

  • Monetary

  • Hide the column on the worksheet. Managers can add the hidden column to their worksheets by using the View menu.

  • Include in Audit Trail

    Include changes made to this column in the audit trail.

  • Value Remains Unchanged

    The percentages stored in certain columns are to remain static and not change even when the corresponding amount changes.

  • Lookup Type

    Display the related lookup type for the list value. This is available for custom list columns only.

  • Display Total for All Components

    Display a total for all components in the summary section of the worksheet. This is available for numeric columns in the summary tab only.

Visibility and Access

You can use the Visibility and Access tab to configure if a column is visible and who can view or update it. You can also secure columns based on the presence or absence of a particular role or roles. For example, you may want compensation managers to view and update a different set of worksheet columns than line managers. The main column settings are:

  • Enable

    Display columns on the worksheet.

  • Read-only

    Make the column not editable on the worksheet

  • Initially hidden

    Hide the column in the worksheet until the manager chooses to display it in the worksheet

Role-Based Overrides

You override main column values on the worksheet based on role by selecting an override setting. Overrides apply only to roles added. Main column settings control column access for all other roles. If no overrides are needed leave the Override Setting blank. To disable previously configured override settings select the Not enabled option. You can apply the override setting only to users with the added roles, or only to users who have none of the added roles

Default Values Tab

On the Default Values tab, you can specify settings that control default values displayed in the column. The values populate the column on the worksheet when you run the Start Compensation Cycle process or when you refresh the column defaults. You can select to refresh the default column value when the Refresh Data process runs. Configuring default values is optional. Values available are:

  • Default Value

    Enter an initial, specific value for a column.

  • Default and Override Formula

    Override any existing values and display values using the Compensation Default and Override formula type.

  • Compensation Derived Factor

    Display values using a compensation derived factor.

  • Cross Reference Fields

    For certain columns you have the option to cross reference data from other columns and plans.

Element Mapping Tab

When you configure compensation component columns you need to identify how to transfer approved compensation awards to HRYou use the Element Mapping tab for the Compensation Amount column tab to identify awards as salary adjustments or as lump sum payments that posted to element entries.

Adjustment to Base Pay

If the compensation component is an adjustment to base pay you select Yes for Post as Salary. Each worker's salary record is updated with the amount stored in the column. If you want the current salary adjustment to be posted as an itemized adjustment, you can optionally select a salary component in the Salary Component to use. This creates a salary component record in each worker's main salary record.

For example, you have a plan with two salary components - Merit Pay and COLA - where a worker receives a $5,000 allocation for Merit Pay and a $1,500 allocation for COLA. You want both of these components to increase the worker's base pay amount and you want to retain the breakdown of the amount for each component. When you configure the Compensation Amount columns for the Merit Pay and COLA components, you map the Merit Pay plan component to the Merit Salary component and the COLA plan component to the COLA salary component. When data is transferred to HR, the worker's salary record displays a total salary increase of $6,500 as a result of a Merit adjustment for $5,000 and a COLA adjustment for $1,500.

You can modify the list of salary components available using the CMP_SALARY_COMPONENT lookup type.

Lump Sum Payment

If the compensation component is a lump sum payment, you select No for Post as Salary. You add the payroll elements to use to pay the compensation award. You can add multiple payroll elements to accommodate payments in different currencies and for workers in different legislative data groups.

Information Tab

You can use the Information tab to provide managers additional information or details about the data displayed in any column. The text appears when managers hover over a help icon that appears after the column heading in the summary or detailed table section of the worksheet. You can type up to 300 characters for each column.

Role Based Column Access: Examples

You can secure worksheet columns based on the presence or absence of a particular role or roles by selecting an override setting when you configure the worksheet column properties. The following scenarios illustrate when you might want to vary column access.

Best practice is to configure the main column setting that applies to the most number of roles and configure the override settings for the least number of affected roles.

One Role Can See the Column, But the Other Role Cannot

Scenario: You want compensation managers to see compa-ratio but not line managers.

Example: You enable the Compa-Ratio column under the main column settings, select the Not Enabled override value, and select the User has any of these roles condition. You then add the line manager role.

Both Roles Can See the Column, But Only One Role Can Update

Scenario: You want both compensation managers and line managers to see the custom column, Individual Performance Multiplier, but only compensation managers to update it.

Example: You enable a custom numeric column and title it Individual Performance Multiplier. You make the main column setting Read-only, select the Updateable override value, and select the User has any of these roles condition. You then add the compensation manager role.

All Roles Can See and Update the Column, Except for Alternate Approvers

Scenario: You want compensation managers and line managers to see and update the custom column Individual Performance Multiplier, but alternate approvers who are not line managers or compensation managers cannot view or update it.

Example: You enable a custom numeric column and title it Individual Performance Multiplier. You make the main column setting Enabled and Updatable. Select the Not Enabled override value and select the User has none of these roles condition. You then add the line manager and compensation roles.

Eligible Salary Column: Explained

You must configure the Eligible Salary column for each component in the plan when you use or display percentage columns or when you configure a budget pool to store budgets as percentages. Many calculations use eligible salary, such as the allocation percentage, target percentage, and worker budget percentages. Eligible salary might simply be equal to each worker's current base pay, or it might be prorated based on various factors.

You can define eligible salary by selecting a fast formula or derived factor while configuring the column properties on the Default Values tab. Or you can use dynamic calculations to determine each worker's eligible salary. Samples of eligible salary proration formula are delivered and available to copy and modify from the Manage Fast Formula page.

Varying Worksheet Column Results: Points to Consider

You can use fast formulas and dynamic columns to vary column results on the worksheet. The best method depends on the data you use, the complexity of the calculation, and the timing of the refresh data process.

Using Fast Formulas

Fast formulas use any data in Oracle Fusion applications to determine column results. You can create simple to complex formulas that require multiple compound conditions or multiple database records. Calculations are evaluated when the compensation cycle is started for the first time, or when you refresh column defaults.

Using Dynamic Columns

Dynamic columns use other columns to determine column results. You can create simple "if then" expressions or build a few compound conditions. Calculations can be immediate, such as when a manager tabs out of a column. To refresh the column results you can refresh column defaults or fully refresh all the worksheet and plan data.

Numeric Properties in Models: Explained

When you configure numeric columns you determine whether to use numeric separators, how to round numbers, and how many decimal places display.

Numeric Properties

When you use the columns in models these three numeric properties vary depending on from where you open the model.


Model Region

Where Model Opened

Numeric Properties Source

Model Summary

Budget Sheet

Configure Budget Page Layout Summary Tab, Define Column Properties dialog box

Model Summary

Worksheet

Configure Worksheet Page Layout Summary Tab, Define Column Properties dialog box

Model Detail Table

Anywhere

Configure Worksheet Page Layout Detail Tab, Define Column Properties dialog box

Cross Referencing Data Between Plans: Points to Consider

When you need to see data combined from multiple plans in one plan, you can create a single reporting plan and cross reference data for certain columns from other compensation plans. The referenced data is available in the new plan immediately after the worksheet is saved in the originating plan.

When you set up a new plan, you configure the column properties for the worksheet columns. If the type of column is available to cross reference, then you can specify the following default values:

  • Cross reference plan

  • Cycle matching

  • Column to cross reference

Cross Reference Plan

All active plans are available to be cross referenced, even plans with no started cycles. You can also reference a plan within itself to display values from a previous plan cycle in a subsequent cycle. For example, you can display a target amount or custom score from a previous plan cycle in the current plan cycle so that managers are aware of that data when making a current compensation decision.

You cannot select a default value for a column by cross-referencing a column from another plan if you have selected values for the Default Value, Default and Override Formula, or Compensation Derived Factor fields on the Configure Column Properties dialog box.

Cycle Matching

You select which cycle to use to obtain the reference data by specifying the cycle to match. Cycle matching uses information only for cycles that were started. Cycle matching values are:

  • Same Cycle Extract Date

    Match the HR Data Extraction Date of the current plan's cycle to find the cross reference plan's cycle.

  • Same Cycle Display Name

    Match the exact same display name of the current plan's cycle to find the cross reference plan's cycle.

  • Previous Cycle Extract Date

    Compare the current plan's HR Data Extraction Date to the most recent extract date from the cross reference plan. The extract date from the cross reference plan must be earlier than the current plan's date. You can use this to reference data from cycle to cycle with the same plan, for example, to bring in values from last year's bonus cycle.

  • Latest Cycle Extract Date

    Obtain the latest extract date from the cross reference plan without regard to the current plan's extract date. You can use this in a total compensation plan that is always available and automatically clears once the new cycles are run.

Columns to Cross Reference

You can cross reference most columns in the cross reference plan. The type of columns you cannot cross reference are:

  • Promotion columns

  • Performance Management columns

  • Iconic columns

  • HR data columns

  • Percentage columns

  • Columns that are cross referenced from another plan

Cross Referencing Data Between Plans: Examples

The following examples illustrate when to cross reference data between compensation plans.

Example 1

You create a salary plan and a bonus plan. You want managers to have a total compensation view when awarding from either plan even if they are not open concurrently. In the bonus plan you reference the New Salary or Salary Change Amount column. Then, in the salary plan you reference the Bonus Amount column.

Example 2

Your company wants to create a single compensation change statement that includes compensation awarded from multiple plans. You can create a compensation statement plan, reference all the compensation awarded from each of the different plans into the compensation statement plan, and generate worker statements from the single plan. Each worker receives only one compensation statement.

Allocating Compensation by Percentage of Budget Amount: Points to Consider

You can enable managers to allocate compensation as a percentage of the budget pool as an alternative to allocating compensation as a percentage of eligible salary or a flat amount. If you allocate compensation as a percentage of a budget pool, you need to disable the eligible salary column for the component linked to the budget pool. You should also disable modeling allocation methods that use eligible salary, as well as understand how rounding rules can affect summary values.

Disable Eligible Salary Columns and Allocation Method

The eligible salary columns and allocation method are enabled by default. If you enable the Percentage of Budget column for any component, you must disable the following:

  • Percentage of Eligible Salary columns on the Detail tab for any given component

  • Total Eligible Salaries and Percentage of Total Eligible Salaries columns on the Summary tab

  • n Percentage of Eligible Salary allocation method, if you use modeling.

Rounding Rules

The rounding rule set for the corresponding Component Amount column affects the amount calculated for the Percentage of Budget column.

For example, if the overall budget is $900 and the rounding rule set for the Component Amount column is Round to the nearest 10, the following calculations take place when managers enter 4 in the Percentage of Budget column.


Column

Calculated Amount

Amount After Rounding

Component Amount

(4 / 100) * 900 = 36

40

When the rounded amount is used to calculate the percentage of budget it produces a different result than without the rounding.


Column

With Rounding

Without Rounding

Percentage of Budget

40 / 900 = 4.44

36 / 900 = 4

Automatically Ranking Workers: Points to Consider

If you are ranking more than just your direct reports, you can automatically rank workers from highest rank to lowest rank using one of three methods:

  • Rank workers based on their ranking score

  • Rank workers based on their ranking percentile

  • Copy direct managers' rankings

Regardless of the method you choose to automatically rank, it is possible that automatic ranking could result in multiple workers having the same rank. You choose whether to handle ties by retaining the ties or by arbitrarily resolving them. How you handle ties can change the ranking results for any of the three automatic ranking methods.

Rank Workers Based on Their Ranking Score

The ranking score considers the rankings of all managers who ranked the worker, who are in the viewing manager's organization. A worker's ranking score varies according to the manager viewing the score. It also considers each manager's position in the hierarchy, giving more weight to the ranking of higher level managers since the worker is ranked against a larger population of workers.

This table compares the different ranking results for the same scores when you retain the ties or arbitrarily resolve the ties.


Worker

Score

Retain Ties

Arbitrarily Resolve Ties

Maria

100

1

1

Rahul

92

2

2

Maya

92

2

3

Janice

92

2

4

Carlos

32

3

5

Michael

32

3

6

Yan

18

4

7

Rank Workers Based on Their Ranking Percentile

The ranking percentile considers the ranking given by a worker's direct manager when ranking at least ten workers. It places workers in order from highest to lowest within a range of 0 to 100. It is calculated as 100 - (rank / population * 100) = percentile.

Note

The population is the total number of workers ranked by the direct manager.

For example, if the worker is ranked five out of 27 workers ranked by the direct manager, the percentile is 82, derived from the calculation 100 - (5 / 27 * 100).


Worker

Percentile

Retain Ties

Arbitrarily Resolve Ties

Maria

95

1

1

Rahul

92

2

2

Maya

82

3

3

Janice

82

3

4

Carlos

64

4

5

Michael

50

5

6

Yan

47

6

7

Copy Direct Managers' Rankings

Rankings given by each worker's worksheet manager are used exactly as given. Multiple workers can have the same ranking. Ranking values need not be consecutive. Managers can choose to give the same ranking to multiple workers or can choose to leave gaps in the ranking.

This table compares the different tie handling results for a manager viewing the rankings that managers in his organization gave to their direct reports.


Direct Manager

Worker

Direct Manager's Ranking

Copy Direct Manager's Ranking

Retain Ties

Arbitrarily Resolve Ties

Lakshmi

Maria

1

1

1

1

Lakshmi

Rahul

2

2

2

3

Lakshmi

Maya

3

3

3

4

Lakshmi

Janice

4

4

4

6

Barry

Carlos

5

5

5

8

Barry

Michael

3

3

3

5

Barry

Yan

2

2

2

2

Barry

Prasad

4

4

4

7

Ranking Score: How It Is Calculated

The ranking score is a calculated value from 0 to 100 for each worker who has at least one ranking. It considers the rankings of all managers who ranked the worker, who are in the viewing manager's organization. A worker's ranking score varies according to the manager viewing the score. It also considers each manager's position in the hierarchy, giving more weight to the ranking of higher level managers since the worker is ranked against a larger population of workers. The scores are whole numbers only.

Conditions That Affect the Ranking Score

There are three conditions that affect the ranking score.

  • The ranking given by each manager

  • The viewer's position in the hierarchy

  • The number of other workers ranked. Ranking score is only calculated when there are at least 10 total workers ranked.

How the Ranking Score Is Calculated

The ranking score is derived using this formula:

Ranking score equals (100 x [SUM(Group Population - Ranking +1)]) / SUM(Group Population)

Following is the description of the variables in the equation:

  • Group Population: Includes all ranked workers reporting directly or indirectly to the manager viewing the score. The group population must include at least 10 workers for a score to be calculated.

  • Ranking: The position value given to a worker. It must be a positive, whole number from 1 to N.

  • 1: Added to the numerator to ensure that workers ranked 1 by all managers will receive a score of 100.

  • (Group Population - Ranking + 1): Summed for the manager looking at the score and all lower managers who ranked the worker.

Example 1

John views the rankings for a worker who reports directly to Peter. John ranked the worker 299 out of 2200 and Peter ranked the worker a 1 out of his 7 workers ranked.


Manager

Worker's Ranking

Workers Ranked

Group Population - Ranking + 1

John

299

2200

1902

Susan

75

600

526

Henry

15

90

76

Nancy

4

26

23

Peter

1

7

7

Sum

not applicable

2923

2534

The ranking score of the worker John is viewing is 86, derived from the calculation (100 * 2534) / 2923.

Example 2

Nancy views the same worker (who reports to Peter) as John, in example 1.


Manager

Worker's Ranking

Workers Ranked

Group Population - Ranking + 1

Nancy

4

26

23

Peter

1

7

7

Sum

not applicable

33

30

The ranking score of the worker Nancy is viewing changes to 91, derived from the calculation (100*30) / 33.

Example 3

Nancy views the same worker (who reports to Peter), with the same ranking as in the previous examples, but with a smaller number of workers ranked in Nancy's organization. Note that the worker's ranking score is 82 in the smaller organization (example 3) and 91 in the larger organization (example 2). These examples illustrate that the same ranking results in a higher ranking score when the higher level manager has a larger population of workers ranked.


Manager

Worker's Ranking

Workers Ranked

Group Population - Ranking + 1

Nancy

4

10

7

Peter

1

7

7

Sum

not applicable

17

14

The ranking score of the worker Nancy is viewing is 82, derived from the calculation (100*14) / 17.

Compensation Default and Override Formula Type

The Compensation Default and Override formula determines the default values populated in a column for a workforce compensation plan. When you configure the worksheet display for a column in the Configure Column Properties dialog box, Default Values tab, you can select this formula.

The following predefined formulas are available for the eligible salary column for this formula type.

Note

Use these formulas as samples for testing purposes only. Copy and create your own version of a formula for use in your own compensation plans. Modifying the sample formula might provide unexpected results upon upgrade.


Formula

Description

CMP_ELIGIBLE_SALARY_PRORATION_DAILY_AVERAGE

Eligible salary calculated by averaging daily salary. Accounts for number of days that a salary is in effect during the workforce compensation cycle evaluation period.

CMP_ELIGIBLE_SALARY_PRORATION_MONTH_END_AVERAGE

Eligible salary calculated by averaging salary on the last day of each month in the workforce compensation cycle evaluation period. Uses salary on the last day of the evaluation period for mid-month evaluation end dates.

CMP_ELIGIBLE_SALARY_PRORATION_DAILY_AVERAGE_NINETY_DAY_MIN

Eligible salary calculated by averaging daily salary. Accounts for number of days that a salary is in effect during the workforce compensation cycle evaluation period. Returns zero for workers who worked fewer than 90 days.

CMP_ELIGIBLE_SALARY_PRORATION_DAILY_AVERAGE_USING_FTE

Eligible salary calculated by averaging daily salary adjusted for part-time workers. Accounts for number days that a salary is in effect and FTE during the workforce compensation cycle evaluation period.

CMP_ELIGIBLE_SALARY_PRORATION_DAILY_AVERAGE_FOR_JOBS

Eligible salary calculated by averaging salary for the number of days worker holds a specific job code on the assignment. Accounts for the number of days that a salary is in effect during the workforce compensation cycle evaluation period.

Contexts

The following contexts are available to formulas of this type:

  • EFFECTIVE_DATE

  • HR_ASSIGNMENT_ID

  • PAYROLL_ASSIGNMENT_ID

  • DATE_EARNED

  • JOB_ID

  • HR_TERM_ID

Database Items

Database items related to Person, Assignment, Salary, and Element Entries are 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_PLAN_ID

Number

Y

Unique numeric identifier for the workforce compensation plan

CMP_IV_PERIOD_ID

Number

Y

Unique numeric identifier for the fiscal calendar period

CMP_IV_COMPONENT_ID

Number

Y

Unique numeric identifier for the workforce compensation plan component

CMP_IV_ITEM_NAME

Char

Y

Name for the workforce compensation plan item

CMP_IV_PERSON_ID

Number

Y

Unique numeric identifier for the worker associated with the workforce compensation plan

CMP_IV_PLAN_START_DATE

Date

Y

Date on which the workforce compensation plan becomes active

CMP_IV_PLAN_END_DATE

Date

Y

Date on which the workforce compensation plan becomes inactive

Return Values

Use predefined names for return variables. The following return variables are available to formulas of this type.


Return Value

Data Type

Required

Description

L_DEFAULT_VALUE

Number/Char/Date

Y

Default value from the formula

L_DATA_TYPE

Char

Y

Data type of the column

Sample Formula

This sample formula determines if a person is selected for a plan based on their assignment_id.

/*******************************************************************
FORMULA NAME : Compensation Default and Override Formula
FORMULA TYPE : Compensation Default and Override 
DESCRIPTION  : Defaults the value of a column based on its 
  item_name.
*******************************************************************/ 

/*=========== INPUT VALUES DEFAULTS BEGIN =====================*/ 
INPUTS ARE CMP_IV_PLAN_ID (number), CMP_IV_PERIOD_ID (number), CMP_IV_COMPONENT_ID (number), CMP_IV_ITEM_NAME (text) 
/*=========== INPUT VALUES DEFAULTS ENDS======================*/ 

/*================ FORMULA SECTION BEGIN =======================*/ 
                          
      DEFAULT FOR CMP_IV_ITEM_NAME IS 'YYYYYYY'
      
      L_DEFAULT_VALUE = to_char(0) 
      L_DATA_TYPE = 'NONETYPE' 

      //Valid L_DATA_TYPE values can be -
//NUMBER, CHAR, DATE.
      
IF (CMP_IV_ITEM_NAME = 'AmountComp1') THEN
      (
       L_DATA_TYPE = 'NUMBER'
       L_DEFAULT_VALUE = to_char(3333)
      )
      ELSE IF (CMP_IV_ITEM_NAME = 'AmountComp2') THEN
      (
       L_DATA_TYPE = 'NUMBER'
       L_DEFAULT_VALUE = to_char(7777)
      )
      ELSE
      (
       L_DATA_TYPE = 'NONETYPE' 							
       L_DEFAULT_VALUE = to_char(-999)
      )
      
      RETURN L_DATA_TYPE, L_DEFAULT_VALUE

/*================ FORMULA SECTION END =======================*/

Dynamic Calculations : Explained

Dynamic calculations are conditional statements, or expressions, that you use to calculate and display values that vary by worker or to change the value of one column based on the value of another.

You build a condition by selecting worksheet columns, operators, and values, or by manually creating the condition. When you use the Basic tab, the system guides you through the creation of conditions or column results. Alternatively, you can create expressions free-hand using the Advanced tab. The aspects of dynamic calculations are:

  • Evaluation order

  • Triggering events

  • Default expression

Evaluation Order

You enter an evaluation order to identify the order in which multiple dynamic columns are calculated when the results of one column is used in the condition or results of another.

For example, you can define a Total Cash Compensation column that displays the sum of an automatically calculated COLA adjustment and a manager-entered merit adjustment. Define a dynamic column for the COLA adjustment for all workers that varies the adjustment by each worker's location and grade. Give this dynamic expression an evaluation order of 1. Give the Total Cash Compensation column an evaluation order of 2 so the application evaluates the COLA adjustment first and then uses that amount to display the Total Cash Compensation for each worker.

Triggering Events

Triggering events are actions that determine when dynamic calculations are evaluated.

Events that trigger evaluation or recalculation of dynamic columns are:


Triggering Event

Description and Usage

Start compensation cycle

When you run the Start Compensation Cycle, the application evaluates the column conditions and calculates the results. For example, you might select this trigger to calculate eligible salaries used during the cycle.

Refresh data

When you run the Refresh Data process, you can reevaluate all dynamic calculations, fast formulas, or HR data used in dynamic calculations.

Change worker data

When a manager enters or changes data on the worksheet and tabs out of the cell, the application reevaluates the condition and corresponding results. Because this trigger might slow the application performance, do not use it if the column result does not depend on data that might be changed in the worksheet.

Default Expression

The default expression is the one to use when no other conditions are met.

A condition must be met for the calculation to be performed. The system evaluates every condition in sequence order. If no result is met then the system uses the default condition. If you do not select a default expression and no conditions are met, the column displays no values. The default expression must be the highest sequence number because it is only applied after all other conditions are evaluated and determined not have been met.

Using Dynamic Calculations: Examples

Use these scenarios to understand how to use dynamic calculations to calculate and display a value or change the value of one column based on the value of another.

Using Dynamic Calculations to Define Eligible Salary

You are setting up the annual compensation plan. You want to base the bonus eligible salary on the current annual salary. Using dynamic calculations, you create an expression that moves the current annual salary amount into the Bonus Eligible Salary column when you start the compensation cycle.

Using Dynamic Calculations to Define Targets

As part of the annual bonus review you want to display bonus target amounts on the worksheet for managers to consider during allocations. Your company uses performance ratings and you want to use the ratings as the basis for the targets. Using dynamic calculations, you create expressions that vary the Bonus Target Amount by performance ratings. For example, if performance rating is Outstanding, then Bonus Target Amount equals 10 percent of Bonus Eligible Salary.

Using One Column's Results in Another Expression

At your company managers can rate workers performance as part of the annual compensation cycle. As you set up the compensation plan you want to make sure that performance ratings are used as a basis for determining salary increase targets. For example, high performers have a target of 10 percent of eligible salary where average performers have a target of 5 percent of eligible salary. Using dynamic calculations, you create an expression for the Merit Eligible Salary and give it an Evaluation Order of 1. Then, you create another expression that defines the Target Compensation Percentage as a percentage of Merit Eligible Salary for each different performance rating and give it an Evaluation Order of 2. The application evaluates the Merit Eligible Salary first, and then uses it to calculate the Target Compensation Percentage.

Creating Dynamic Calculations: Worked Example

This example demonstrates how to create a dynamic column for an annual bonus plan that rewards high performing workers.

The following table summarizes key decisions for this scenario.


Decisions to Consider

In This Example

What events do you want to trigger the calculation?

Start Compensation Cycle and Refresh Data.

What conditions do you want evaluated?

Performance Rating of 5 (Outstanding) and 4 (Exceeds Expectations)

Which column on the worksheet do you want to dynamically calculate?

Compensation Amount column for the Bonus component

What results do you want to see for the dynamic column?

A bonus of ten percent of annual salary for workers with a rating of 5. A bonus of five percent of annual salary for workers with a rating of 4. All others receive 0

Summary of the Tasks

To create this dynamic calculation for the Compensation Amount column for the Bonus component, complete the following tasks:

  1. Perform prerequisites

  2. Create the dynamic calculation

  3. Build the first expression

  4. Build the second expression

  5. Build the third expression

  6. Test the dynamic calculation

Prerequisites

  1. Enable the Compensation Amount column for the Bonus component.
  2. Enable performance ratings.
  3. Set up a rating scale from 1 to 5, where 5 equals Outstanding and 4 equals Exceeds Expectations.

Creating the Dynamic Calculation

  1. On the Detail Table tab of the Configure Worksheet Page Layout page click the Dynamic Columns icon for the Compensation Amount column.
  2. On the Manage Dynamic Calculations page select Start compensation cycle and Refresh data triggering events.
  3. Click the Add icon to create the first expression.
  4. Enter 1 for the Sequence.
  5. Click the Create or Edit Expression icon for the Condition.

Building the First Expression

  1. On the Edit Condition dialog box, click Build Condition.
  2. On the Basic tab complete the fields as shown in this table.

    Field

    Value

    Column

    Performance Rating

    Operation

    Contains

    Fixed Value

    5


  3. Click Done.
  4. Click Validate. This step is optional.
  5. Click OK in the confirmation.
  6. Click Apply.
  7. On the Manage Dynamic Calculations page click the Create or Edit Expression icon for Column Results for the expression you just created.
  8. On the Basic tab of the Edit Column Results dialog box select Equation.
  9. Click Switch to Column.
  10. Compete the fields as shown in this table. Click Next between steps.

    Field

    Value

    Column

    Annualized Full-Time Salary - Current

    Operation

    Multiplied by

    Fixed Value

    0.1


  11. Click Done.
  12. Click Apply.

Building the Second Expression

  1. On the Manage Dynamic Calculations page click Add icon to create the second expression.
  2. On the Edit Condition dialog box, click Build Condition.
  3. On the Basic tab complete the fields as shown in this table.

    Field

    Value

    Column

    Performance Rating

    Operation

    Contains

    Fixed Value

    4


  4. Click Done.
  5. Click Apply.
  6. On the Manage Dynamic Calculations page click the Create or Edit Expression icon for Column Results for the expression you just created.
  7. On the Basic tab of the Edit Column Results dialog box select Equation.
  8. Click Switch to Column.
  9. Compete the fields as shown in this table. Click Next between steps.

    Field

    Value

    Column

    Annualized Full-Time Salary - Current

    Operation

    Multiplied by

    Fixed Value

    0.05


  10. Click Done.
  11. Click Apply.

Building the Third Expression

  1. On the Manage Dynamic Calculations page click the Add icon to create the third expression.
  2. Enter 3 for the Sequence.
  3. Select Default.
  4. Click the Create or Edit Expression icon for Column Result for the expression you just created.
  5. On the Basic tab of the Edit Condition dialog box enter 0 as the Fixed Value.
  6. Click Done.
  7. Click Apply.

Testing the Dynamic Calculation

  1. On the Manage Dynamic Calculations page click the Test Condition and Column Results icon.
  2. On the Test Condition dialog box complete the fields as shown in this table.

    Field

    Value

    Performance Rating

    5

    Annualized Full-Time Salary - Current

    50000


  3. Click Test.
  4. Verify that the results are as expected and click OK in the confirmation.

OTBI Reports in Compensation: Explained

You can use Oracle Transactional Business Intelligence (OTBI), to create custom, real-time reports using Workforce Compensation, salary and stock data. In the Workforce Compensation work area, you can make these reports available to line managers to reference during a compensation cycle.

For more information on creating OTBI reports, see the Oracle Business Intelligence Enterprise Edition 11g Release 1 (11.1.1) User's Guide.

Adding the Reports to a Compensation Plan

All OTBI (and OBIEE) reports that you save in the /shared/Human Capital Management/Compensation/Transactional Analysis Samples folder are available to add to a Workforce Compensation plan. As you configure the reports for the plan, you can add reports from this folder and provide a new display name, if desired. You can add up to 25 reports for each plan. When you remove a report from a plan it does not delete the source report from its original location.

Implementer Access

The Compensation Manager and Compensation Analyst roles contain the privileges to view and create OTBI reports. Implementers must have the Compensation Manager role to view the available reports, in addition to the Compensation Administrator role required to set up a compensation plan.

Line Manager Access

Line managers must have the FBI_COMPENSATION_TRANSACTION_ANALYSIS_DUTY role to view OTBI reports. Managers then access an OTBI report from the Reports task pane in the workforce compensation work area. All managers at all levels of the hierarchy can view the reports.

Dimensions: Explained

Dimensions are attributes used to group data in reports or as criteria when building models. You can enable the dimensions that have meaning to your organization within the context of the plan. Some examples of delivered dimensions are country, department, years of service, performance management rating, location, job, position, and grade.

Aspects of dimensions include:

  • Reporting usage

  • Modeling usage

  • Range increments

Reporting Usage

Reports use dimensions to group data. For example, you can analyze compensation allocations by country and job to see how average allocations vary. Or, for a given manager's team, you can analyze salaries by performance rating and compa-ratio to verify data or correct pay discrepancies.

Modeling Usage

Models use dimensions as criteria to build models. For example, when you create a model to automatically allocate salary adjustment amounts you know that a worker's country or location will affect the allocation. You can select Country and Location as modeling criteria to model values for workers who meet each combination of criteria.

Range Increments

When aggregating data across people, you can define increments to display for the following ranges:

  • Compa-Ratio

  • Salary Range Position

  • Years Employed

  • Performance Management Calculated Overall Rating

  • Performance Management Calculated Goal Rating

  • Performance Management Calculated Competency Rating

Graphs and tables do not show a separate data point for each person. Instead, they show people grouped within the increments defined. For example, when using compa-ratio to group data in reports, you might want to see workers grouped in increments of 10 percentage points, meaning that all workers whose compa-ratio falls between 80 and 90 are grouped together.

Terminated Worker Processing: Explained

Workers with a termination date between the cycle evaluation start date and HR data extraction date are included in the cycle as long as they meet all eligibility criteria. The Start Compensation Cycle process uses the worker's termination date to extract HR data rather than the HR Data Extraction date. When the cycle is over, the Transfer Data to HR process creates element entries and salary records as usual to process lump sum awards and salary adjustments, as long as the effective date of the award is earlier than or equal to the worker's termination date.

The Transfer Data to HR process fails if a salary adjustment or lump sum effective date is later than the worker's payroll last standard process date.

FAQs for Manage Compensation Plans

What happens if I include ineligible workers on the worksheet?

The worksheet displays ineligible workers but managers cannot allocate compensation, promote or rate worker performance. Managers or administrators can change an ineligible worker's status to eligible.

What happens if I include recently terminated workers in the Start Compensation Cycle process?

Terminated workers appear on the worksheet and are eligible if their actual termination date is between the cycle evaluation start date and the HR data extract date, and they meet the eligibility requirements. Individuals that do not meet these criteria are not included on the worksheet or in the Start Compensation Cycle process.

What happens if my eligibility requirements are different for the components than they are for the plan?

Plan level eligibility is evaluated before component level eligibility. A worker must be eligible for the plan to be eligible for a component. Each component can have different eligibility requirements. If a worker is found eligible for the plan, the worker might or might not be eligible for one or more components in the plan.

When do I need to make a component the primary component for budgeting?

When you link more than one component to a single budget pool, you need to identify the primary component. When eligibility differs for components, the eligible salaries of workers eligible for the primary component are used to determine each manager's total eligible salaries used for budgeting purposes. You can then allocate budgets as a percentage of eligible salary for each manager's organization.

How can I configure a plan so that multiple components draw from the same budget pool?

On the Configure Components page, link all the components to the same budget pool and identify one of the components as the primary component. The primary component determines the population used when budgeting. For example, you might have different eligible populations for each component where each component has a different total eligible salary. To limit spending for all components to ten percent, choose the component whose Total Eligible Salary is used to calculate the corresponding budget amount.

How can I store custom data to use as default worksheet column values?

Scenario: You have custom data such as scores, ratings, incentive plan, target percentages, and special earning calculator values stored in your HR application. You want to use this data to calculate bonuses, targets, group workers for compensation purposes, and so on.

Use tasks in the Define Elements, Balances, and Formulas task list in the Setup and Maintenance work area to:

  1. Create a single payroll element with many input values and label these input values according to the data you want to load.

  2. Load the worker-level data into element entries.

  3. Write fast formulas to display each element input value as a default value in a worksheet column.

What happens if I select Value Remains Unchanged when I configure a column's properties?

The percentages stored in the following columns remain static and do not change even when the corresponding amount related to eligible salary or budget pool changes.

  • Compensation Percentage of Eligible Salary

  • Compensation Percentage Maximum

  • Compensation Percentage Minimum

  • Target Percentage

  • Target Percentage Maximum

  • Target Percentage Minimum

  • Worker Budget Percentage

  • Percentage of Budget Pool

Can I configure workflow in workforce compensation to route my worksheet for approval?

No. Workforce compensation uses the hierarchy created to build the worksheets to route approvals to the highest level manager. You cannot create custom approval routes for worksheets. However, you can create alternate approval hierarchies for individual managers during setup.

What's the difference between worksheet manager and alternate approver?

A worksheet manager is the worksheet owner responsible for allocating compensation to eligible workers, commonly the supervisor of the workers who appear on the worksheet.

An alternate approver is a person defined as an approver of a worksheet. The person may not be part of the standard hierarchy or may be in a different position than in the standard approval hierarchy. The standard approval hierarchy is built using the hierarchy type defined for the plan.

Can I change an alternate hierarchy?

Yes. You can change the hierarchy of an already defined alternate approver without running the refresh process. But, if you want to add an alternate approver for a new person or delete one for an existing person after the start compensation cycle process has run, then you must refresh the data.

Why are some columns already enabled in my new tab?

Each tab type includes commonly used columns enabled by default. You can deselect the columns if you do not want them to appear on the worksheet.

What's the difference between Basic and Advanced tabs in the Edit or Create Condition Rules dialog box?

The Basic tab takes you through a sequence of steps to create a condition and places the columns and operators in the correct position of the expression.

On the Advanced tab, you can use the series of steps to create an expression, but you can also manually edit a condition by placing the cursor where you want to insert a column or operator, or create a condition by typing the names of columns and operators.

Configure Global Compensation Settings

Workforce Compensation Notification Text: Explained

You can enable workflow notifications to occur when managers perform certain actions, such as publishing a budget or submitting, returning, or withdrawing a worksheet. You enable the notifications using the Configure Global Options task.

Notification Text

The notification is named to easily identify the manager action that causes the notification to be sent. Each notification consists of header and message text, which is not configurable.


Notification

Header Text

Message Text

Budget Published

Compensation Budget Published for {manager who received the budget} ({budget amount} {currency code})

{manager who published the budget} published a budget to you for the plan {plan name}. You can publish budgets to lower managers or begin allocating compensation.

Worksheet Submitted

Approval of {plan name} for {submitting manager}

{submitting manager} submitted {plan name} worksheet for approval. Review it and take the appropriate approval action.

Worksheet Returned for Correction

Your {plan name} Worksheet is Returned for Correction

{submitting manager} returned your worksheet for correction. Review it, make the necessary changes, and resubmit for approval

Worksheet Approved by Higher Manager

Your {plan name} Worksheet is Approved

Your worksheet was approved by {approving manager}. It is still in the approval process until final approval is obtained.

Final Approval Obtained

{plan name} Worksheet is Fully Approved

Your worksheet has obtained final approval.

Plan Access Changed

{plan name} Worksheet Access Was Changed

Your access to the plan and cycle was changed.

Worksheet Withdrawn

{plan name} Worksheet was Withdrawn by {manager name}

{withdrawing manager} withdrew the {plan name} worksheet. {withdrawing manager} will resubmit the worksheet when it is ready for your approval.

Budget Withdrawn

Compensation Budget Withdrawn by {manager name}

{manager name} withdrew your budget for {plan name}. Your worksheet will display a zero available budget.

Worksheet Overridden by Higher Manager

Your {plan name} Worksheet was Modified by {manager name}

Compensation allocations for one or more of your workers was overridden by {manager name}. View details of the override from the plan worksheet.

Request for Information

Information Request from {manager name} Regarding {plan name}

{manager name} requested additional information about your worksheet. Review the comments and provide a response.

Approval Required for Eligibility Change

Eligibility Change Requested by {manager name} ({worker name})

{manager name} requested to change worker eligibility for eligibility for the plan or component. Review the request and take the appropriate action

Approval Required for Worker Reassignments

Worker Reassignment Requested by {manager name} ({plan name})

{manager name} requested to reassign the following workers to your worksheet. The reassignment is only effective for the plan and cycle shown and does not affect the manager relationship in worker employment records. Review the request and take the appropriate action

Workforce Compensation Notifications: How They Work

You can send notifications when managers perform certain actions on the worksheet or budget sheet. The type of notification sent depends on the selections made on the Configure Global Settings page.

Settings That Affect the Workforce Compensation Notifications

For each individual action you can set the notification to:

  • Always be sent

  • Send only if the initiating manager chooses

  • Disable

For example, you can choose to always send notifications for all worksheet actions, send notifications for budget actions only if the manager chooses, and disable notifications so that none are sent when the plan access changes.

Note

The Request Information notification is always enabled.

How the Workforce Compensations Work

The following table describes what action initiates the notification; who initiates and receives the notification; the actions, if any, that are available to the notification receiver within the notification; and conditions that cause the bypass of the notification. This table assumes one of the following notification settings for each action:

  • Always send

  • Prompt manger and manager has chosen to send


Notification

Initiating Action

Initiator

Receiver

Actions Available to the Receiver

Condition Causing Bypass of Notification

Budget Published

Manager's worksheet status changes from Not Started to Budget Available

Manager who published a budget to lower managers

Lower-level manager for whom a budget amount was published

Dismiss

None

Worksheet Submitted

Manager's worksheet status changes to Submitted

Worksheet manager or switched manager who initiated the action

Manager one level up from sender in the plan hierarchy. If alternate approver exists, receiver is the alternate approver

Approve

Reject

Sender is a top manager without an alternate approver

Worksheet Returned for Correction

Manager's worksheet approval status changes to Return for Correction

Higher-level manager or user who switched to manager and returned lower manager's worksheet. This could be an alternate approver

Manager whose worksheet was returned for correction

Dismiss

None

Worksheet Approved by Higher-Level Manager

Manager's worksheet status changes to In Approvals

Higher-level manager who approved using the submit notification or switched manager who initiated the action. The manager is not the final approver. This could be an alternate approver

Manager whose worksheet status changed to In Approvals

Dismiss

Manager's worksheet access is No Access

Final Approval Obtained

Manager's worksheet status changes to Fully Approved

Top-level approver who approved a lower managers worksheet using the submit for approval notification or the approval action from the worksheet. This could be the top alternate approver

Manager whose worksheet is approved and all subordinate managers

Dismiss

Manager's worksheet access is No Access

Plan Access Changed

Higher level manager selects Change Access for All Managers or Change Access for Selected Managers from the worksheet

Manager who changed another manager's plan access

Manager whose plan access was changed

Dismiss

None

Worksheet Withdrawn

Manager clicks Withdraw Submission

Worksheet manager who previously submitted the worksheet

Approver who received the original worksheet submitted notification from a lower manager

Dismiss

None

Budget Withdrawn

Manager clicks Withdraw All Budgets or Withdraw Selected Budgets

Manager who previously published a budget to a lower manager

Lower-level manager for whom a budget amount was previously published

Dismiss

None

Worksheet Overridden by Higher Manager

Manager or administrator changes a compensation amount column that was supplied by another manager, and clicks Save

Manager who modified an amount

Manager or administrator who originally supplied the amount. This can be a higher- or lower-level manager

Dismiss

None

Request for Information

Manager selects one or more managers on the approval type tab, and clicks Request Information

Manager who requested information

Selected managers

Reply. This opens a dialog box to reply to the sender

Dismiss

None

Configuring the Tasks Pane of the Workforce Compensation Work Area: Explained

You can configure the tasks pane for compensation plans, budget pools, and models that appear in the Workforce Compensation work area. Edit the task name, disable tasks, and specify the number of plans, budget pools, or models displayed using the Configure Global Settings task.

Task Name

The default task names appear as the task group titles in the Workforce Compensation work area tasks pane. When you change a task name, the edit also applies to default page names, as shown in the following table.


Task Name

Default Page Name

Compensate Workforce

Compensation Plans

Compensate Workforce

Manage Budgets

Budget Pools

Allocate Budgets

Model Compensation

Manage Compensation Models

Create or Edit Compensation Model

Reports

Reports

Enable Task

You can use the Enable Task option to enable or disable tasks in the Compensation work area If you disable a task, it does not appear in the tasks pane and the links to the related compensation plans, budget pools, and models are not available.

For example, you might hide the compensation task if you only use workforce compensation for off-cycle plan budgets. You would enable the budget task and disable the other tasks. Or, you might hide the budget task if you manage budgets internally and line managers are only able to allocate compensation.

Objects Shown

You can change the quantity of compensation plans, budget pools, or models that appear in the group in the tasks pane. For example, if you change the default value of five objects to seven objects for the compensation task, seven plans appear under the Compensate Workforce task. If there are more plans available, you view the additional plans using the More link at the bottom of the list.

FAQs for Configure Global Compensation Settings

Why did the default stock details change?

More than one administrator might have access to these settings because this stock price and currency information is used to display stock in compensation history as well as when managing workforce compensation or generating total compensation statements.

Can I configure the content that appears in the workforce compensation submit for approval notification?

Yes. Configure the Related Links and Comments sections content using the BPM worklist composer. When setting up the plan, how you configure the summary tables in the Configure Worksheet Display task determines the content in the Compensation Summary, Performance Summary, and Promotions Summary sections of the notification. You cannot configure the Details and Summary sections content.

Manage Eligibility Profiles

Eligibility Components: How They Work Together

You add eligibility criteria to an eligibility profile, and then associate the profile with an object that restricts eligibility.

The following figure shows the relationships between eligibility components.

Eligibility profile components and associated objects

Eligibility Criteria

You can add different types of eligibility criteria to an eligibility profile. For many common criteria, such as gender or employment status, you can select from a list of predefined criteria values. However, you must create user-defined criteria and derived factors before you can add them to an eligibility profile.

Eligibility Profile

When you add an eligibility criterion to a profile, you define how to use it to determine eligibility. For example, when you add gender as a criterion, you must specify a gender value (male or female) and whether to include or exclude persons who match that value.

Associating the Profile with Objects

You can associate an eligibility profile with different kinds of objects:

  • Associate an eligibility profile with a variable rate or variable coverage profile to establish the criteria required to qualify for that rate or coverage.

  • Associate an eligibility profile with a checklist task to control whether that task appears in an allocated checklist.

  • Associate an eligibility profile with a total compensation statement to apply additional eligibility criteria after statement generation population parameters.

  • Associate one or more eligibility profiles with a benefits or compensation object to establish the eligibility criteria for specific plans and options.

Derived Factors: Explained

Derived factors define how to calculate certain eligibility criteria that change over time, such as a person's age or length of service. You add derived factors to eligibility profiles and then associate the profiles with objects that restrict eligibility.

Derived Factor Types

You can create six different types of derived factors: age, compensation, length of service, hours worked, full-time equivalent, and a combination of age and length of service.

Determination Rules and Other Settings

For each factor that you create, you specify one or more rules about how eligibility is determined. For example, the determination rule for an age derived factor specifies the day on which to evaluate the person's calculated age for eligibility. If the determination rule is set to the first of the year, then the person's age as of the first of the year is used to determine eligibility.

For the full-time equivalent factor, you specify the minimum and maximum full-time equivalent percentage and whether to use the primary assignment or the sum of all assignments when evaluating eligibility. For example, if the percentage range is 90 to 100 percent for the sum of all assignments, then a person who works 50 percent full-time on two different assignments is considered eligible.

Other settings define the unit of measure for time or monetary amounts, rounding rules, and minimums and maximums.

Derived Factors: Examples

The following scenarios illustrate how to define different types of derived factors:

Age

Benefits administrators frequently use age factors to determine dependent eligibility. You can also use age as a factor when determining life insurance rates. Age factors typically define a range of ages, referred to as age bands, and rules for evaluating the person's age. The following table illustrates a set of age bands that could be used to determine eligibility for life insurance rates that vary based on age.


Derived Factor Name

Greater Than or Equal To Age Value

Less Than Age Value

Age Under 25

1

25

Age 25 to 34

25

35

Age 35 to 44

35

45

Age 45 to 54

45

55

Age 55 to 64

55

65

Age 64 or Older

65

75

The determination rule and other settings for each age band are the same:


Field

Value

Determination Rule

First of calendar year

Age to Use

Person's

Units

Year

Rounding

None

Length of Service

A derived factor for length of service defines a range of values and rules for calculating an employee's length of service. The following table illustrates a set of length-of-service bands that could be used to determine eligibility for compensation objects such as bonuses or severance pay.


Derived Factor Name

Greater Than or Equal To Length of Service Value

Less Than Length of Service Value

Service Less Than 1

0

1

Service 1 to 4

1

5

Service 5 to 9

5

10

Service 10 to 14

10

15

Service 15 to 19

15

20

Service 20 to 24

20

25

Service 25 to 29

25

30

Service 30 Plus

30

999

The determination rule and other settings for each length-of-service band are the same:


Field

Value

Period Start Date Rule

Date of hire (This sets the beginning of the period being measured.)

Determination Rule

End of year (This sets the end of the period being measured.)

Age to Use

Person's

Units

Year

Rounding

None

Compensation

A derived factor for compensation defines a range of values and rules for calculating an employee's compensation amount. The following table illustrates a set of compensation bands that could be used to determine eligibility for compensation objects such as bonuses or stock options.


Derived Factor Name

Greater Than or Equal To Compensation Value

Less Than Compensation Value

Less than 20000

0

20,000

Salary 20 to 34000

20,000

35,000

Salary 35 to 49000

35,000

50,000

Salary 50 to 75000

50,000

75,000

Salary 75 to 99000

75,000

100,000

Salary 100 to 200000

100,000

200,000

Salary 200000 Plus

200,000

999,999,999

The determination rule and other settings for each compensation band are the same:


Field

Value

Determination Rule

First of year

Unit of Measure

US Dollar

Source

Stated compensation

Rounding

Rounds to nearest hundred

Age to Use: Points to Consider

The Age to Use value that you select is an important aspect of an age derived factor. This value determines whose birth date is used to calculate the derived age.

Selecting Person's Age to Use

In most cases, you use the Person's value in the Age to Use field to define an age derived factor for either a participant or dependent eligibility profile. In this case, each person's birth date is used to calculate the age criterion by which eligibility is evaluated for that person.

Example

For example, if you select Person's as the Age to Use value, and associate the age derived factor with a dependent eligibility profile, each dependent's eligibility is evaluated based on the age calculated from his or her own birth date.

Selecting Other Age to Use Values

You might select another predefined value in the Age to Use field if you intend to evaluate participant or dependent eligibility or rates based on someone else's age, such as a spouse, child, or other dependent.

Note

If you choose Inherited Age, the evaluation is based on the date of birth as defined in the person extra information flexfield.

Example

If you select Person's oldest child as the Age to Use value, and associate this derived factor with a dependent eligibility profile, eligibility for all dependents is evaluated based on the age of the participant's oldest child. Consequently, when the oldest child reaches the maximum age of eligibility, for instance, all dependents become ineligible.

User-Defined Criteria: Explained

You can define your own eligibility criteria that meet any special requirements of your organization. Associate your criteria with eligibility profiles for benefits, compensation, performance management, and so on. For example, your organization wants to use work-at-home assignment as the eligibility criteria for a monthly telecommunications allowance. While the table and column already exist, the data is not available from existing eligibility criteria tabs when creating the eligibility profile. You must first define the work-at-home criteria so that you can then use it with an eligibility profile.

The data for the eligibility criterion must be stored in a table that is accessible to the application.

  • If the data is stored in either the Person Attributes or Assignments table, you can:

    1. Select the table and column from a list.

    2. Select the lookup type to use to validate input values, including custom lookup types that you created for either table.

      For details, see the Setting Up Lookup-Based User-Defined Criteria: Worked Example topic.

    3. Optionally, specify a range of valid values, if the field stores a numeric value or a date.

    To select the correct values for the column and lookup fields, you must understand the basic structure of the Person Attributes and Assignment tables, which store the eligibility criteria data.

  • If the data is stored in a table other than the Person Attributes or Assignment tables, you must:

    1. Create a formula to retrieve the data from the table.

    2. Set the formula type to User-Defined Criteria.

You can define one or two sets of criteria in the User-Defined Criteria dialog box. The participant must meet the criteria defined in either set to be considered eligible or ineligible.

After you create your user-defined criteria, you can add it to an eligibility profile. Use it to make participants ineligible by selecting the Exclude check box when adding the user-defined criteria to an eligibility profile.

User-Defined Criteria: Examples

The following scenarios illustrate how you can create different types of user-defined criteria for use in eligibility profiles associated with benefits and compensation objects. In each example, you must:

  1. Create the user-defined criteria using the Manage User-Defined Criteria task in the Plan Configuration work area.

  2. Add the user-defined criteria to an eligibility profile using the Manage Eligibility Profile task.

  3. Set the criteria values to use in the eligibility profile.

  4. Associate the eligibility profile with the relevant benefits or compensation object.

Base Eligibility on a Custom Attribute

Your commercial diving company wants to offer different benefit rates to employees who dive to depths greater than 330 feet. In the Setup and Maintenance work area, you set up the lookup type, value set, and global segment of the Person Attributes descriptive flexfield table to store the data for each employee. For details, see the Setting Up Lookup-Based User-Defined Criteria: Worked Example topic.

  1. On either the create or edit page for user-defined criteria, set the following values.


    Field

    Value

    Table

    Person Attributes

    Column

    BEN_DIVE_DEPTH

    Lookup

    BEN_DIVE_DEPTH

    Enable range validation one

    Selected

  2. On either the create or edit page for the eligibility profile, add the user-defined criteria to an eligibility profile.

  3. On the Other tab, User-Defined Criteria subtab, set the following values.

    You might have to refresh the Meaning list before you see the choice that you want. To do so, click another subtab, such as Formula, and then click the User-Defined Criteria tab again.


    Field

    Value

    Set 1 Meaning

    329

    Set 1 To Meaning

    9999

    Exclude

    Clear

  4. Associate the eligibility profile with a benefit variable rate profile.

Base Eligibility on a Formula

Your company wants to offer a spot incentive bonus to hourly employees who worked 100 percent of their scheduled shift hours in a three month period. In the Setup and Maintenance work area, you used the Manage Fast Formula task to create the formula that calculates Scheduled Hours minus Worked Hours for each week in the previous three months. If the result of successive calculations is less than or equal to zero, then the formula returns a result of Yes.

  1. On the create or edit page for user-defined criteria, enter the following values.


    Field

    Value

    Access One Formula

    Worked_Sched_Hours_Percent

    Enable range validation one

    Clear

  2. On either the create or edit page for the eligibility profile, add the user-defined criteria to an eligibility profile.

  3. On the Other tab, User-Defined Criteria subtab, set the following values.

    You might have to refresh the Meaning list before you see the choice that you want. To do so, click another subtab, such as Formula, and then click the User-Defined Criteria tab again.


    Field

    Value

    Set 1 Meaning

    Yes

    Exclude

    Clear

  4. Associate the eligibility profile with the bonus compensation object.

Note

For very complex scenarios, your organization or implementation team can write a custom program to evaluate eligibility, and then create a formula that calls the custom program.

Use Eligibility to Exclude

Your organization wants to exclude workers with a work-at-home assignment from a transportation allowance.

  1. On the create or edit page for user-defined criteria, set the following values.


    Field

    Value

    Table

    Assignment

    Column

    Work_at_home

    Lookup

    YES_NO

    Enable range validation one

    Clear

  2. On either the create or edit page for the eligibility profile, add the user-defined criteria to an eligibility profile.

  3. On the Other tab, User-Defined Criteria subtab, set the following values.

    You might have to refresh the Meaning list before you see the choice that you want. To do so, click another subtab, such as Formula, and then click the User-Defined Criteria tab again.


    Field

    Value

    Set 1 Meaning

    Yes

    Exclude

    Selected

  4. Associate the eligibility profile with the transportation allowance compensation object.

Range of Scheduled Hours: Example

This example illustrates how to define eligibility criteria based on the number of hours an employee is scheduled to work within a specified period of time.

Weekly and Monthly Ranges

You want to limit eligibility for a benefits offering to employees who were scheduled to work between 30 and 40 hours each week or between 130-160 each month as of the end of the previous quarter. To do this, add two different ranges on the Range of Scheduled Hours tab, which is under the Employment tab on the Create or Edit Eligibility Profile page.

Set the values for the first range as shown in this table:


Field

Value

Sequence

1

Minimum Hours

30

Maximum Hours

40

Scheduled Enrollment Periods

Weekly

Determination Rule

End of previous quarter

Set the values for the second range as shown in this table:


Field

Value

Sequence

2

Minimum Hours

130

Maximum Hours

160

Scheduled Enrollment Periods

Monthly

Determination Rule

End of previous quarter

Eligibility Profiles: Explained

An eligibility profile defines criteria used to determine whether a person qualifies for a benefits offering, variable rate profile, variable coverage profile, compensation object, checklist task, or other object for which eligibility must be established.

The following are key aspects of working with eligibility profiles:

  • Planning and prerequisites

  • Specifying the profile type, usage, and assignment usage

  • Defining eligibility criteria

  • Excluding from eligibility

  • Assigning sequence numbers

  • Adding multiple criteria

  • Viewing the criteria hierarchy

Planning and Prerequisites

Before you create an eligibility profile, consider the following:

  • If an eligibility profile uses derived factors, user-defined formulas, or user-defined criteria to establish eligibility, you must create these items before you create the eligibility profile.

  • If you are defining eligibility criteria for a checklist task, variable rate profile, or variable coverage profile, you must include all criteria in a single eligibility profile, because these objects can be associated with only one eligibility profile. You can, however, associate multiple eligibility profiles with benefits offerings , compensation objects and the Performance Management object.

  • Eligibility profiles are reusable, so use names that identify the criteria being defined rather than the object with which the profile is associated. For example, use "Age-20-25+NonSmoker" rather than "Supplemental Life-Min Rate."

Specifying Profile Types, Usage, and Assignment Usage

When you create an eligibility profile, you specify whether the profile applies to participants or dependents.

  • Use participant profiles to define criteria for a person who has a work relationship with the legal employer as an employee, contingent worker, or nonworker.

  • Use dependent profiles for participants' spouses, family members, or other individuals who qualify as dependents. Dependent profiles can be associated with only benefit plans and plan types.

An eligibility profile's usage determines the type of objects with which the profile can be associated. For example, set the profile usage to:

  • Benefits to make the profile available to associate with benefits objects, such as programs, plans, plan types, options, variable rate profiles, and variable coverage profiles

  • Compensation to make the profile available to associate with individual and workforce compensation plans as well as total compensation statements

  • Global to make the profile available to multiple business processes

  • Goals to make the profile available to associate with goals when creating a goal plan or mass assigning goals, or to associate with goal plans

For Performance Management, you can select any usage.

When you create an eligibility profile, you specify which assignment to use with it. For profiles where usage is Compensation or Performance, select Specific Assignment. For Performance Management eligibility profiles, you must select the Participant type and Specific Assignment as the assignment to use.

Defining Eligibility Criteria

Criteria defined in an eligibility profile are divided into categories:

  • Personal: Includes gender, person type, postal code ranges, and other person-specific criteria

  • Employment: Includes assignment status, hourly or salaried, job, grade, and other employment-specific criteria

  • Derived factors: Includes age, compensation, length of service, hours worked, full-time equivalent, and a combination of age and length of service

  • Other: Includes miscellaneous and user-defined criteria

  • Related coverage: Includes criteria based on whether a person is covered by, eligible for, or enrolled in other benefits offerings.

Some criteria, such as gender, provide a fixed set of choices. The choices for other criteria, such as person type, are based on values defined in tables. You can define multiple criteria for a given criteria type.

Excluding from Eligibility

For each eligibility criterion that you add to a profile, you can indicate whether persons who meet the criterion are considered eligible or are excluded from eligibility. For example, an age factor can include persons between 20 and 25 years old or exclude persons over 65. If you exclude certain age bands, then all age bands not explicitly excluded are automatically included. Similarly, if you include certain age bands, then all age bands not explicitly included are automatically excluded.

Assigning Sequence Numbers

You must assign a sequence number to each criterion. The sequence determines the order in which the criterion is evaluated relative to other criteria of the same type.

Adding Multiple Criteria

If you define multiple values for the same criteria type, such as two postal code ranges, a person needs to satisfy at least one of the criteria to be considered eligible. For example, a person who resides in either postal range is eligible.

If you include multiple criteria of different types, such as gender and age, a person must meet at least one criterion defined for each criteria type.

Viewing the Criteria Hierarchy

Select the View Hierarchy tab to see a list of all criteria that you have saved for this profile. The list is arranged by criteria type.

Combining Eligibility Criteria or Creating Separate Profiles: Points to Consider

You can define multiple criteria in an eligibility profile or create separate profiles for individual criterion. To determine the best approach, consider the following:

  • Does the object you are defining eligibility for support multiple eligibility profiles?

  • What is the best approach in terms of efficiency and performance?

Support for Multiple Eligibility Profiles

If you are defining eligibility criteria for a checklist task, variable rate profile, or variable coverage profile, you must include all criteria in a single eligibility profile, because these objects can be associated with only one eligibility profile. You can, however, associate multiple eligibility profiles with benefits offerings , compensation objects and the Performance Management object.

Efficiency and Performance

For optimum performance and efficiency, you should usually attach profiles at the highest possible level in the benefits object hierarchy and avoid duplicating criteria at lower levels. Plan types in program, plans in program, plans, and options in plans inherit the eligibility criteria associated with the program. For example, to be eligible for a benefits plan type, a person must satisfy eligibility profiles defined at the program level and at the plan type in program level.

However, it is sometimes faster to create more than one profile and attach the profiles at various levels in the hierarchy. For example, you might exclude employees from eligibility at the program level who do not have an active assignment. At the level of plan type in program, you might exclude employees who do not have a full-time assignment. Finally, at the plan level, you might exclude employees whose primary address is not within a service area you define.

Note

Eligibility criteria can be used to include or exclude persons from eligibility. Sequencing of criteria is more complicated when you mix included and excluded criteria in the same profile. For ease of implementation, try to keep all excluded criteria in a separate eligibility profile.

Creating a Participant Eligibility Profile: Worked Example

This example demonstrates how to create a participant eligibility profile used to determine eligibility for variable life insurance rates. The profile includes two eligibility criteria: age and tobacco. Once the eligibility profile is complete, you can associate it with a variable rate profile.

The following table summarizes key decisions for this scenario.


Decisions to Consider

In this Example

What is the profile type?

Participant

What type of object is associated with this profile?

Variable rate for benefits offering

What types of eligibility criteria are defined in this profile?

Age derived factor (must have been previously defined)

Uses Tobacco criteria

What are the criteria values?

Age: Under 30

Tobacco Use: None

Should persons meeting these criteria be included or excluded from eligibility?

Included

The following figure shows the tasks to complete in this example:

Tasks involved in creating a participant eligibility profile in this example.

Note

In this example, you create one eligibility profile that defines the requirements for a single variable rate. Typically, you create a set of eligibility profiles, one for each variable rate. When you have completed all steps described in this example, you can repeat them, varying the age and tobacco use criteria, to create a separate profile for each additional rate.

Prerequisites

  1. Create an age derived factor for ages less than 30.

Creating the Eligibility Profile

  1. In the Plan Configuration work area, click Manage Eligibility Profiles.
  2. Click the Create menu, and then click Create Participant Profile.
  3. In the Eligibility Profile Definition region of the Create Participant Eligibility Profile page, complete the fields as shown in this table. Use the default values except where indicated.

    Field

    Value

    Name

    Age Under 30+Non-Smoking

    Profile Usage

    Benefits

    Description

    Participant, age under 30, non smoker

    Status

    Active

    Assignment to Use

    Any assignment


Adding the Derived Factor for Age

  1. In the Eligibility Criteria region, select the Derived Factors tab.
  2. On the Age tab, click Create.
  3. In the Sequence field, enter 1.
  4. In the Age field, select the derived factor that you previously defined for ages under 30.
  5. Do not select the Exclude check box.

Adding the Criteria for Tobacco Use

  1. Select the Personal tab.
  2. On the Uses Tobacco tab, click Create.
  3. In the Sequence field, enter 1.
  4. In the Tobacco Use field, select None.
  5. Do not select the Exclude check box.
  6. Click Save and Close.

Associating the Eligibility Profile with a Variable Rate Profile

  1. In the Plan Configuration work area, click Manage Benefits Rates.
  2. Select the Variable Rates tab.
  3. Click Create.
  4. In the Eligibility Profile field, select the eligibility profile you just created.
  5. Complete other fields as appropriate for the rate.
  6. Click Save and Close.

    Note

    You can reuse this eligibility profile by associating it with other objects that restrict eligibility, including benefits offerings, compensation plans, and checklist tasks.

Eligibility Profiles: Examples

The following examples illustrate scenarios where eligibility profiles are needed and briefly describe the setup required for each scenario.

401(k) Eligibility

A 401(k) savings plan is restricted to full-time employees under 65 years of age. To restrict eligibility for the plan, you must first create a derived factor for the age band of 65 and older, if one does not already exist. Then create an eligibility profile. Set the Profile Usage to Benefits and the Profile Type to Participant. Add the following criteria:


Criteria Type

Name

Values

Employment

Assignment Category

Full-Time

Derived Factor

Age

Select the age derived factor you created previously, and then select the Exclude check box.

Associate the eligibility profile with the 401(k) plan.

Bonus Eligibility

A bonus is offered to all employees who received the highest possible performance rating in all rating categories. To restrict eligibility for the bonus, create an eligibility profile. Set the participant type to Participant, profile usage to Compensation or Global, and use in assignment to Specific Assignment. Add the following criteria for each rating category:


Criteria Type

Name

Values

Employment

Performance Rating

Select the performance template and rating name, and then select the highest rating value.

Associate the eligibility profile with the bonus compensation object.

Checklist Task Eligibility

A new hire checklist contains tasks that do not apply to employees who work in India. To restrict eligibility for the tasks, create a participant eligibility profile. Set the Profile Usage to Checklist and the Profile Type to Participant. Add the following criteria:


Criteria Type

Name

Values

Employment

Work Location

Select India as the work location, and then select the Exclude check box.

Associate the eligibility profile with each checklist task that does not apply to workers in India.

FAQs for Manage Eligibility Profiles

What happens if I include multiple criteria in an eligibility profile?

If you define multiple values for the same criteria type, such as two postal code ranges, a person needs to satisfy at least one of the criteria to be considered eligible. For example, a person who resides in either postal range is eligible. If you include multiple criteria of different types, such as gender and age, a person must meet at least one criterion defined for each criteria type.

What happens if I do not select the Required option when I add an eligibility profile to an object?

If you add only one eligibility profile to an object, then the criteria in that profile must be satisfied, even if the Required option is not selected. If you add multiple eligibility profiles, the following rules apply:

  • If all profiles are optional, then at least one of the profiles must be satisfied.

  • If all profiles are required, then all of the profiles must be satisfied.

  • If some but not all profiles are required, then all required profiles must be satisfied and at least one optional profile must also be satisfied.