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This guide also applies to on-premise implementations

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9 Analyze Total Compensation

This chapter contains the following:

Analyze Total Compensation: Overview

Manage Compensation Items, Categories, and Statement Definitions

Analyze Total Compensation: Overview

Maintain and analyze a statement that communicates compensation, rewards, and benefits to workers. Analyzing total compensation involves maintenance and generation of statements by the compensation administrator, and the viewing and analysis of statements by the compensation manager, individual workers, and HR specialists, as shown in the following figure.



The total compensation statement can include compensation often overlooked by workers, such as fringe benefits or perks, company contributions towards health and welfare benefits, the value of stock grants, and paid time off, in addition to traditional forms of pay such as base pay and variable compensation.

To analyze total compensation:

  • Compensation administrators create or edit compensation items, categories, and statement definitions, then generate statements.

  • Compensation managers view and analyze generated statements.

  • Workers view and analyze their total compensation statements while the statement is available for access.

  • HR specialists view workers' statements in response to inquiries.

Maintain statement definitions and analyze total compensation from the following work areas:


Role

Work Area

Compensation Administrator

Setup and Maintenance

Select Navigator - Setup and Maintenance.

Compensation

Select Navigator - Compensation.

Compensation Manager

Compensation

Select Navigator - Compensation.

HR Specialists

Person Management

Select Navigator - Person Management.

Person Gallery

Select Navigator - Person Gallery.

Workers

Total Compensation Statements

Select Navigator - Total Compensation Statements.

My Portrait

Select Navigator - My Portrait.

Manage Compensation Items, Categories, and Statement Definitions

Total Compensation Statement Building Blocks: How They Fit Together

To construct a total compensation statement, you create compensation items, attach them to compensation categories, and arrange the categories hierarchically in a statement definition. After specifying the statement period and configuring other display options, you generate the statements and make them available for workers to view.

This figure shows the construction of a total compensation statement definition and how it displays items and categories.

Construction of a total compensation statement

Compensation Items and Sources

Compensation items are the foundation on which the statement is built and can be used across statement definitions.

  1. Define compensation items that represent, for example, the actual amounts paid to workers, costs incurred by the company, or value of accrued time off.

  2. Map each item to the specific source from which the compensation information is retrieved. The sources of compensation information include payroll element entries, payroll balances, and benefit balances. You can also create fast formulas to retrieve compensation from other sources.

Restriction

You cannot add items to statement definitions directly. To include items on statements, you must add items to a compensation category.

Compensation Categories

Compensation categories display information in tables. The category type determines the table columns and the general layout of a category page within the statement.

  • Use categories to group similar or related compensation items, for example, Cash Compensation, Benefits, Time Off, or Stock History.

  • Use the same categories in multiple statements.

  • Display categories directly on the summary page, or nest them to make subcategories.

Statement Definition

The statement definition acts as a template and determines the layout and content of the generated statement. The statement definition consists of compensation items added to compensation categories. You can decide to create statement definitions using either of the following methods.

  • Create the item and category components as you the build statement hierarchy.

  • Define these building block components first, then associate them hierarchically.

    This second option might be more efficient as you can reuse items and categories across multiple statements.

You can include multiple legal employers, multiple countries, and multiple currencies in one statement. You can also add compensation items with sources that belong to different legal employers.

Define periods for which statement data is valid and customize an optional welcome message for each period. You can reuse statement definitions by creating new statement periods and then modify the definition for subsequent periods. You can also duplicate a definition as the starting point for other definitions.

Important

Edits to categories affect all statement definitions that use that category (as a category or subcategory), whether you make the edits from the Manage Compensation Categories page or the Manage Statement Definitions page.

Exception: Compensation category display names are local to the statement definition where you create or edit the name and do not impact the compensation category.

Statement Display

Top-level categories in the statement definition appear in the optional summary page and as separate pages in the statement. The optional summary page:

  • Provides workers with high-level view of their total compensation in graphs and tables

  • Displays summed totals of top-level categories included in monetary and nonmonetary regions

Viewers can drill down to detailed category pages from the summary page or use regional area navigation links, depending on how the category is configured.

Iterative Process

Configuring top-level compensation categories and statement definitions is an iterative process. You generate, view, purge, and regenerate your statements multiple times while editing category and statement definition and display options.

Compensation Items and Sources: Explained

Compensation items are the lowest level of detail on which the total compensation statement is based. Items can hold monetary, nonmonetary, date, or text values. Compensation items must be added to a compensation category to include them in a total compensation statement. You cannot add items to statement definitions directly.

These are significant aspects of compensation items:

  • Source types

  • Type of compensation and unit of measure

  • Estimated values

  • Rounding

Source Types

You map compensation items to the source of the compensation to retrieve the compensation information. Compensation items using different source types have slightly different data entry configurations based on the data required for each type.

This table describes the source types and special data entry requirements.


Source Type

Description

Additional Data Entry Requirements

Payroll Element

Compensation such as salary and bonus earnings retrieved from element entry.

Legislative Data Group and Input Value

Payroll Balance

Compensation such as commissions or company-paid taxes retrieved from payroll balance records.

Legislative Data Group and Dimension

Benefit Balance

Compensation such as data obtained from a legacy compensation application entered as a one-time benefit balance.

None

Formula

Create a formula to retrieve compensation information that is not stored in the other predefined source types.

Type of Compensation, nonmonetary Unit of Measure, and Currency. (Formula unit or currency overrides item definition)

Compensation Type and Unit of Measure

The compensation item inherits from the source the default type of compensation, such as monetary or nonmonetary, and the monetary currency or nonmonetary unit of measure. In some cases you can override the default compensation type and nonmonetary unit of measure when defining the item.

If a formula that retrieves compensation also specifies currency or nonmonetary unit of measure, the formula currency or unit overrides the currency or unit specified in the item definition.

Estimated Values

For each item, you can select the Estimated amount option to indicate that this compensation is not the actual amount paid. In the statement definition, you can specify whether to display the estimated amount indicator for amounts designated as estimated.

Rounding

You can specify how to round nonmonetary amounts.

Total Compensation Item Formula Type

The Total Compensation Item formula determines compensation information that is not stored in the other predefined item source types.

You select the formula when you manage compensation items on the Create or Edit Compensation Items page.

Contexts

The EFFECTIVE_DATE (statement end date) context is available to formula of this type.

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 formula of this type.


Input Value

Data Type

Required

Description

CMP_IV_PERSON_ID

Char

Y

Worker ID

CMP_IV_PERIOD_START_DATE

Date

Y

Statement Period Start Date

CMP_IV_PERIOD_END_DATE

Date

Y

Statement Period End Date

Return Values

Use defined names for return variables. The following return variables are available to formula of this type.


Return Value

Data Type

Required

Description

COMPENSATION_DATES

Date

Y

One to 15 transaction dates delimited by semicolon, maximum 250 characters.

VALUES

Char

Y

One to 15 transaction values delimited by semicolon, maximum 250 characters. Must be the same number of values as dates.

ASSIGNMENTS

Char

N

One to 15 transaction assignments delimited by semicolon, maximum 250 characters. Must be the same number of assignments as dates. Can return an empty space with a delimiter (; ;).

LEGALEMPLOYERS

Char

N

One to 15 legal employer IDs delimited by semicolon, maximum 250 characters. Must be the same number of assignments as dates. Can return an empty space with a delimiter (; ;).

COMPENSATION_DATES1

Date

Y

Second variable for transaction dates from 16 to 30 if limit of 250 characters is exceeded.

VALUES1

Char

Y

Second variable for transaction values from 16 to 30 if limit of 250 characters is exceeded.

ASSIGNMENTS1

Char

N

Second variable for transaction assignments from 16 to 30 if limit of 250 characters is exceeded.

LEGALEMPLOYERS1

Char

N

Second variable for legal employer IDs from 16 to 30 if limit of 250 characters is exceeded.

COMPENSATION_DATES2

Date

Y

Transaction dates from 31 to 45.

VALUES2

Char

Y

Transaction values from 31 to 45.

ASSIGNMENTS2

Char

N

Transaction assignments from 31 to 45.

LEGALEMPLOYERS2

Char

N

Legal employers from 31 to 45.

COMPENSATION_DATES3

Dates

Y

Transaction dates from 46 to 60.

VALUES3

Char

Y

Transaction values from 46 to 60.

ASSIGNMENTS3

Char

N

Transaction assignments from 46 to 60.

LEGALEMPLOYERS3

Char

N

Legal employers from 46 to 60.

Sample Formula

This sample formula returns one date and one value based on the worker ID.

/*******************************************************************
FORMULA NAME : Total Compensation Simple Item Formula
FORMULA TYPE : Total Compensation Item 
DESCRIPTION  : Returns one date and one value.
*******************************************************************/ 

/*=========== INPUT VALUES DEFAULTS BEGIN =====================*/ 
INPUTS ARE CMP_IV_PERSON_ID (text), CMP_IV_PERIOD_START_DATE (date), CMP_IV_PERIOD_END_DATE (date)
DEFAULT FOR CMP_IV_PERSON_ID IS '-1'
DEFAULT FOR CMP_IV_PERIOD_START_DATE IS '4712/12/31' (date)
DEFAULT FOR CMP_IV_PERIOD_END_DATE IS   '4712/12/31' (date)

/*============ INPUT VALUES DEFAULTS ENDS =====================*/ 

/*=================== FORMULA SECTION BEGIN =================*/ 
                          
 COMPENSATION_DATES = '2005/01/01'
 VALUES             =  '500.00'      

RETURN COMPENSATION_DATES, VALUES

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

This sample formula returns multiple variables.

/*******************************************************************
FORMULA NAME : Total Compensation Multi Item Formula
FORMULA TYPE : Total Compensation Item 
DESCRIPTION  : Returns multiple variables.
*******************************************************************/ 

/*=========== INPUT VALUES DEFAULTS BEGIN =====================*/ 
INPUTS ARE CMP_IV_PERSON_ID (text), CMP_IV_PERIOD_START_DATE (date) , CMP_IV_PERIOD_END_DATE (date)

/*=========== INPUT VALUES DEFAULTS ENDS =====================*/

/*================= FORMULA SECTION BEGIN =================*/ 
                          
  COMPENSATION_DATES  = '2009/01/01;2009/02/01;2009/03/01'
  COMPENSATION_DATES1 = '2009/07/01;2009/08/01;2009/09/01'
  COMPENSATION_DATES2 = '2009/10/01;2009/11/01;2009/12/01'
  COMPENSATION_DATES3 = '2009/10/01;2009/11/01;2009/12/01'
  VALUES              = '200.00;200.00;300.00'
  VALUES1             = '300.00;500.00;500.00'
  VALUES2             = '500.00;500.00;600.00'
  VALUES3             = '600.00;600.00;700.00'

  /* Returns only first two assignment */
  ASSIGNMENTS          = ';1234567890;1234567890'
  ASSIGNMENTS1         = '1234567890;1234567890;1234567890'
  /* Returns last two assignments */
  ASSIGNMENTS2         = ';1234567890;1234567890'
  /* Returns  first and last assignments */
  ASSIGNMENTS3         = '1234567890;;1234567890'


  LEGALEMPLOYERS      = '0123456789;;0123456789'
  LEGALEMPLOYERS1     = '0123456789;0123456789;0123456789'
  LEGALEMPLOYERS2     = '0123456789;0123456789;0123456789'
  LEGALEMPLOYERS3     = '0123456789;0123456789'

RETURN COMPENSATION_DATES,VALUES,COMPENSATION_DATES1,VALUES1,COMPENSATION_DATES2,VALUES2,COMPENSATION_DATES3,VALUES3,ASSIGNMENTS,ASSIGNMENTS1,ASSIGNMENTS2,ASSIGNMENTS3,LEGALEMPLOYERS,LEGALEMPLOYERS1,LEGALEMPLOYERS2,LEGALEMPLOYERS3

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

Compensation Category Types: Explained

The compensation category type determines the table columns and general layout of the category page in the total compensation statement, as well as whether the category can include subcategories.

The category types are:

  • Benefits

  • Cash Compensation

  • Savings and Retirement

  • Time Off

  • Stock History

  • Custom

  • Other

Restriction

You cannot change the category type after you use the category in any statement.

Benefits, Cash Compensation, Savings and Retirement

The Benefits, Cash Compensation, Savings and Retirement, and Other categories share the same basic category structure. These category types permit you to add compensation items as well as nest categories within the category as subcategories.

By default, the category table display includes columns for:

  • Worker and employer contributions

  • A description

You can hide columns that do not apply.

Time Off

The Time Off category includes columns for the type of time off, monetary value of the time off, and accrued balance.

You can:

  • Edit column labels

  • Configure each row name in the category table to be a link to time off information, such as a holiday schedule for paid holidays

Restriction

You cannot nest categories of this type.

Stock History

The Stock History category type displays up to 27 columns of data from the database table that stores workers' stock details.

When you configure the category, you can select which types of stock to include in the category, such as:

  • Incentive stock options

  • Non-qualified stock options

  • Restricted stock

By default, many of the columns are hidden or only visible in the statement optionally, if the worker selects the column in the statement View menu. You can:

  • Alter which columns are hidden or optionally available in the statement

  • Edit the column labels

Custom

If you select the Custom category type, you must also specify the number of columns, up to five, that you want to include in the category, and then configure the column labels and select compensation items for the table rows.

For example, you might use the custom category type to display information about commissions by including columns, such as:

  • Sales target

  • Units sold

  • Percentage over target

  • Percentage under target

  • Commission amount

Restriction

You cannot add subcategories to this category type.

Other

This category type shares the same basic structure as the Cash Compensation or Benefits category type, but you can use it for any type of compensation.

Total Compensation Categories and Subcategories: Critical Choices

Group related compensation together into compensation categories for display in total compensation statements. When planning how to group compensation items and categories for display, you must consider the following factors:

  • Category type

  • Contribution type and unit of measure

  • Level of detail

Category Type

When you create a new category, you first select the category type, which determines the table columns and general layout of the page in the statement.

The category types are:

  • Benefits

  • Cash Compensation

  • Stock History*

  • Custom*

  • Savings and Retirement

  • Time Off*

  • Other

Restriction

  • * You cannot add categories to these category types.

  • After you use a category in any statement, you cannot change the category type.

Contribution Type and Unit of Measure

The contribution type (monetary or nonmonetary) and nonmonetary unit of measure for a category are determined by the contribution type and unit of measure of the associated items or subcategories.

Restriction

All items and subcategories within a nonmonetary category must share the same unit of measure.

Level of Detail

When you create a category, you specify how you want to display the category details in the statement.

  • Provide links from a high-level category page that drill down to specific details for each item or subcategory row in the category.

    For example, you can create a Benefits category that displays high-level information for different health benefits, such as:

    • Medical

    • Dental

    • Vision

    • Life Insurance

    To see the details of each row in the category, such as medical, viewers can drill into the row and access a separate details page.

  • Display the full detail of the category's content on a single page in the statement.

    For example, you can create a Bonus category that displays the amount of different bonuses (such as new hire and quarterly) as rows on the category page.

When deciding on the level of detail display option, consider the following effects of showing all details on a single page:

  • You cannot add subcategories to these categories:

    • Benefits

    • Cash Compensation

    • Savings and Retirement

    • Other

    You can add subcategories if the level of detail enables drilling to see details.

  • The name column does not show in the statement for rows in the category.

  • You cannot hide all columns in the category.

Showing all details on a single page is not recommended for recurring information.

Total Compensation Statement Definitions: Critical Choices

Consider these statement elements and options when determining how many different total compensation statement definitions you require and planning the presentation of content in each:

  • Compensation items and categories

  • Statement audience

  • Statement periods

  • Statement duplication

  • Statement reuse

Including Compensation Items and Categories

The total compensation statement definition consists of compensation items added to compensation categories to build the structure of the statement. Because you can reuse items and categories across multiple statements, you might find it more efficient to create the items and categories before creating statement definitions.

Specifying the Statement Audience

When you generate statements for a statement definition, you can select the statement audience at run time.

Use the following population filter parameters to specify your audience:

  • Business unit

  • Benefits group

  • Legislative data group

  • Country

  • A person selection formula that you define

  • A single person that you select

Also, you may want to configure different statement definitions for different statement audiences determined by the run time population filters. For example, within a business unit, you create separate statement definitions for individual contributors and executive level workers by:

  1. Creating eligibility profiles that differentiate between individual contributors and executive workers

  2. Attaching each eligibility profile to the corresponding statement definition.

Defining Statement Periods

Configure statements to cover any period of time by specifying start and end dates. You can create multiple periods at one time. For each statement period, further specify:

  • An optional statement period display name

    For example, name the period 2011 Annual Statement rather than the default display of start and end date.

  • The date that statements are available to workers

  • The exchange rate date for currency conversions

  • An optional welcome message

Tip

You can reuse existing statement definitions by adding new periods, rather than creating new statement definitions. You can also:

  • Update the welcome message

  • Add or edit the included items and categories

  • Modify how graphs and tables display

Creating New Statement Definitions from Existing Ones

To create new statement definitions, you can duplicate an existing statement definition and edit it. For example, to create the definition for executive level workers, you could duplicate the statement definition for individual contributors, add additional compensation categories or items, and associate a different eligibility profile.

Total Compensation Statement Display Options: Points to Consider

You have many options to control the layout and display of tables and categories in total compensation statements, as well as additional options for displaying graphs, descriptive text, and supplemental information.

In general, you configure display options for:

  • Category detail pages during category setup

  • Top-level categories and the summary page during statement definition setup

This table lists and compares the display options available when creating or editing compensation categories and compensation statement definitions.


Display Option

Category Setup

Statement Definition Setup

Hide table columns

Yes

Yes: summary page columns

Rename table columns

Yes

Yes: top-level categories only

Configure display of zero values

Yes

Yes: top-level categories only

Configure graph display

Yes

Yes: in summary page

Add descriptive text

Yes

Yes: in summary page

Add supplemental text

Yes

Yes: in summary page

Change vertical display order

Yes

Yes: in summary page

Hide regions for graphs or descriptions

Yes

Yes: in summary page

Exclude category from statement summary

No

Yes: top-level categories only

Hide or show estimated amount indicator

No

Yes

Include and hide welcome message

No

Yes

Include and hide statement summary page

No

Yes

Hiding Columns

When you edit the column properties to hide a column in the statement, the data that the column would display is not included in summary or detail tables or graphs.

Here are points to consider when hiding columns:

  • You can hide:

    • Unused or not applicable columns, such as the worker contribution column in a cash compensation category

    • Description columns

      Note

      If you choose to show a category's row in the statement even when it contains only zero values, you should show at least the Description column and enter an explanation, otherwise viewers will see only a row of zeros.

  • You cannot hide all columns in a category if you configure the category level of details to show all details on a single category overview page.

Displaying Zero Contribution Values

When you design categories for a statement, decide how to handle rows for categories, subcategories, and items for which a worker has no values to display during the statement period.

Zero values might occur when a worker:

  • Did not received any stock options during the period

  • Is not participating in a compensation or benefit plan

This table describes the zero value display options.


Statement Element

Display Options When All Contribution Values are Zero

Category and item rows

Display the row in the statement or hide it.

Subcategory rows

Display or hide the row in the high-level category page and permit or prevent drilling to the subcategory detail page.

Top-level categories

Display or hide the top-level category page in the statement.

If you choose to display the row or category page with zero values, you can optionally compose a statement message that:

  • Explains the lack of values

  • Calls attention to missed opportunities, such as participation in a stock purchase plan

Displaying Graphs

You can display up to two graphs for each category. If you include a summary page in the statement, you can also include up to two graphs each in the Monetary and Nonmonetary sections of the summary.

For each graph that you choose to display, you must specify:

  • Graph type: Pie chart or various types of bar chart

  • Columns included in the graph: Worker contributions, company contributions, or both.

Restriction

A graph cannot include columns containing:

  • Text or dates

  • More than one nonmonetary unit of measure

  • A combination of monetary and nonmonetary values

For example, a graph that mixes shares of stock, a company car, and fitness membership would not provide clear information.

Denoting Estimated Amounts

When creating compensation items, you can identify whether the item amounts are estimates. At the statement level, you specify whether to display or hide the indicator that visually denotes amounts as estimated.

Composing a Welcome Message

For each statement period, you can compose an optional welcome message, personalized with each worker's name, that uses rich text and includes hyperlinks. If included, the welcome message is the first page the worker sees in the statement.

Configuring the Statement Summary Page

The summary page consists of optional sections that you can configure.

  • Monetary and Nonmonetary sections, each containing section-level descriptive text, graphs, and tables

  • Summary page descriptive text that can include rich text formatting and hyperlinks

  • Summary page supplemental information, such as hyperlinks to company policies and resources, which are displayed in a separate window

Tip

If you include a graph in the Nonmonetary section, all top-level categories in the nonmonetary summary should share the same unit of measure. You can exclude individual top-level categories from the summary.

Worked Examples for Manage Compensation Items, Categories, and Statement Definitions

Creating a Bonus Category: Worked Example

This example demonstrates how to create a bonus category that includes a profit sharing bonus, a new hire bonus, and a quarterly bonus. The new hire and quarterly bonus items already exist and are reused in this category.

The following table summarizes key decisions for the Profit Sharing compensation item in this scenario.


Decision to Consider

Item in This Example

What compensation does the item represent?

Profit sharing bonus

What is the source type?

Payroll element

What is the legislative data group?

USA

The following table summarizes key decisions for the category in this scenario.


Decision to Consider

Category in This Example

What is the category type?

Cash Compensation

Display category details in the statement at what level?

Viewers see all details on one page.

Add items? (Describe)

Yes: Profit sharing bonus, new hire bonus, and quarterly bonus.

Add other categories as subcategories? Describe

No

Display graphs? (No or Yes?) One or two? What type?

Yes. Two: Bar and stacked bar.

Hide or edit any columns in the category?

Hide worker contributions because this is a cash compensation category. Edit company contribution column name to make it familiar to workers.

Display the row if values are zero in the period?

No

Create a profit sharing bonus item, then create a bonus category and attach the item you created along with other existing bonus items and configure display options. Use the default values except where indicated.

Prerequisites

  1. Create a payroll element named Profit Sharing Bonus using the USA legislative data group.
  2. Create the following compensation items using payroll elements in the USA legislative data group:
    • New Hire Bonus

    • Quarterly Bonus

Creating a Compensation Item

Use the default values except where indicated.

  1. In the Compensation work area, click Manage Compensation Items to open the Manage Compensation Items page.
  2. Click Create.
  3. On the Create Compensation Item page, complete the fields as shown in this table:

    Field

    Value

    Item Name

    Profit Sharing Bonus

    Source Type

    Element entry

    Legislative Data Group

    USA

    Payroll Element

    Profit Sharing Bonus

    Input Value

    Pay Value


  4. Click Save and Close.

Entering Category Details and Adding Items

  1. In the Compensation work area, click Manage Compensation Categories to open the Manage Compensation Categories page.
  2. Click Create.
  3. On the Create Compensation Categories page, complete the fields, as shown in this table.

    Field

    Value

    Name

    Bonus

    Category Type

    Cash Compensation


  4. Click Continue.
  5. On the Create Category page, Table tab, select Viewers see all details on one page in the Level of Detail field.
  6. Click Add Items three times to add three new rows.
  7. Complete the fields for each new row, entering a name and description of the category row and selecting compensation items for the contribution column, as shown in this table.

    Name

    Description

    Company Contribution (Items)

    Profit Sharing

    Profit Sharing Bonus

    Profit Sharing Bonus

    New Hire

    New Hire Bonus

    New Hire Bonus

    Quarterly

    Quarterly Bonus

    Quarterly Bonus


  8. Click Edit Column Properties and select the Your Contribution column.
  9. Select Do not display in the statement.
  10. Click OK.
  11. Click Edit Column Properties and select the Company Contribution column.
  12. Enter Amount in the Column Label field.
  13. Click OK.

Configuring Display Options.

  1. Select the Graphs tab.
  2. Complete the fields for two graphs, as shown in this table.

    Field

    Value for the First Graph

    Value for the Second Graph

    Graph Title

    Your Bonuses

    How Your Bonuses Add Up

    Graph Type

    Bar

    Bar - stacked

    Graph Items

    Amount

    Amount


  3. Click Save.
  4. Click OK in the confirmation.
  5. Select the Descriptive Text tab.
  6. Enter any text here to describe what is included in this category or details about policies, and format it appropriately.
  7. Click Reorder Components at the top of the page.
  8. Select Descriptive Text and click the downward arrow until Descriptive Text appears below Graphs.
  9. Click OK.
  10. Click Save and Close.

Creating a Benefits Category: Worked Example

This example demonstrates how to create a benefits category that includes medical, dental, vision, disability insurance, and life insurance.

The following table summarizes key decisions for the compensation items in this scenario.


Decision to Consider

First Item

Second Item

What compensation does the item represent?

Worker contribution for medical benefit

Company contribution for medical benefit

What is the source type?

Payroll element

Payroll element

What is the legislative data group?

USA

USA

The following table summarizes key decisions for the category in this scenario.


Decision to Consider

Category in This Example

What is the category type?

Benefits

Display category details in the statement at what level?

Display details of item rows on separate pages that viewers drill to for details.

Add items? (Describe)

Yes: Both worker and company contributions for medical, dental, vision, disability insurance, and life insurance benefits.

Add other categories as subcategories? Describe

No

Display graphs? (No or Yes?) One or two? What type?

Yes. Two: Stacked bar and pie chart.

Hide or edit any columns in the category?

No

Display the row if values are zero in the period?

No

Create items for medical insurance, then create a benefits category and attach the items you created along with eight existing benefits items and configure display options. Use the default values except where indicated.

Prerequisites

  1. Create the following payroll elements using the USA legislative data group.
    • Medical Worker Contribution

    • Medical Company Contribution

  2. Create the following compensation items using payroll elements in the USA legislative data group:
    • Dental Worker Contribution

    • Dental Company Contribution

    • Vision Worker Contribution

    • Vision Company Contribution

    • Disability Worker Contribution

    • Disability Company Contribution

    • Life Insurance Worker Contribution

    • Life Insurance Company Contribution

Creating a Compensation Item

Use the default values except where indicated.

  1. In the Compensation work area, click Manage Compensation Items to open the Manage Compensation Items page.
  2. Click Create.
  3. On the Create Compensation Item page, complete the fields as shown in this table:

    Field

    Value

    Item Name

    Medical Worker Contribution

    Source Type

    Element entry

    Legislative Data Group

    USA

    Payroll Element

    Medical Worker Contribution

    Input Value

    Pay Value


  4. Click Save and Create Another.
  5. On the Create Compensation Item page, complete the fields as shown in this table:

    Field

    Value

    Item Name

    Medical Company Contribution

    Source Type

    Element entry

    Legislative Data Group

    USA

    Payroll Element

    Medical Company Contribution

    Input Value

    Pay Value


  6. Click Save and Close.

Entering Category Details and Adding Items

  1. In the Compensation work area, click Manage Compensation Categories to open the Manage Compensation Categories page.
  2. Click Create.
  3. On the Create Compensation Categories page, complete the fields, as shown in this table.

    Field

    Value

    Name

    Benefits

    Category Type

    Benefits


  4. Click Continue.
  5. On the Create Category page, Table tab, select Viewers drill into line items to see details in the Level of Detail field.
  6. Click Add Items five times to add five new rows.
  7. Complete the fields for each new row, entering a name and description of the category row and selecting compensation items for each contribution column in the category, as shown in this table.

    Name

    Description

    Your Contribution (Items)

    Company Contribution (Items)

    Medical

    Amounts reflect your coverage.

    Medical Worker Contribution

    Medical Company Contribution

    Dental

    Amounts reflect your coverage.

    Dental Worker Contribution

    Dental Company Contribution

    Vision

    Amounts reflect your coverage.

    Vision Worker Contribution

    Vision Company Contribution

    Disability Insurance

    LTD provides income protection.

    Disability Worker Contribution

    Disability Company Contribution

    Life Insurance

    Life insurance is a core benefit.

    Life Insurance Worker Contribution

    Life Insurance Company Contribution


Configuring Display Options.

  1. Select the Graphs tab.
  2. Complete the fields for two graphs, as shown in this table.

    Field

    Value for the First Graph

    Value for the Second Graph

    Graph Title

    Employee Versus Company Contributions

    Total Contribution Comparison

    Graph Type

    Bar

    Pie

    Graph Items

    Your Contribution, Company Contribution

    Your Contribution, Company Contribution


  3. Click Save.
  4. Click OK in the confirmation.
  5. Select the Descriptive Text tab.
  6. Enter any text here to describe what is included in this category or details about policies, and format it appropriately.
  7. Click Reorder Components at the top of the page.
  8. Select Descriptive Text and click the downward arrow until Descriptive Text appears below Graphs.
  9. Click OK.
  10. Click Save and Close.

Creating a Custom Category for Commissions: Worked Example

This example demonstrates how to create a Commissions category using the Custom category type.

The following table summarizes key decisions for the category in this scenario.


Decision to Consider

Category in This Example

What is the category type?

Custom

Display category details in the statement at what level?

Viewers see all details on one page.

Add items? (Describe)

Yes: Sales target, sales revenue, and commissions items for year end.

Add other categories as subcategories? Describe

No

Display graphs? (No or Yes?) One or two? What type?

Yes. Two bar charts, one for revenue generated and one for commissions earned.

Hide or edit any columns in the category?

Edit column labels.

Display the row if values are zero in the period?

No

Create a Custom category, attach existing compensation items, and configure display options. Use the default values except where indicated.

Prerequisites

  1. Create the following compensation items:
    • Sales Target Year End

    • Sales Revenue Year End

    • Commission Year End

Entering Category Details and Adding Items

  1. In the Compensation work area, click Manage Compensation Categories to open the Manage Compensation Categories page.
  2. Click Create.
  3. On the Create Compensation Categories page, complete the fields, as shown in this table.

    Field

    Value

    Name

    Commissions

    Category Type

    Custom

    Number of Item Columns

    3


  4. Click Continue.
  5. On the Create Category page, Table tab, select Viewers see all details on one page in the Level of Detail field.
  6. Click Edit Column Properties and select the Your Contribution column.
  7. Enter Sales Target in the Column Label field.
  8. Click OK.
  9. Click Edit Column Properties and select the Company Contribution column.
  10. Enter Sales Revenue in the Column Label field.
  11. Click OK.
  12. Click Edit Column Properties and select the Custom Column 3 column.
  13. Enter Commission in the Column Label field.
  14. Click OK.
  15. Click Add Items.
  16. Complete the fields for the new row, entering a description of the category row and selecting a compensation item for each column in the category, as shown in this table.

    Name

    Description

    Sales Target (Item)

    Sales Revenue (Item)

    Commission (Item)

    Row 1

    Year End Activity

    Sales Target Year End

    Sales Revenue Year End

    Commission Year End


    Note

    The Name column does not show in the statement when the level of detail is configured to display all details on a single page.

Configuring Display Options.

  1. Select the Graphs tab.
  2. Complete the fields for two graphs, as shown in this table.

    Field

    Value for the First Graph

    Value for the Second Graph

    Graph Title

    Revenue Generated

    Commissions Earned

    Graph Type

    Bar

    Bar

    Graph Items

    Sales Revenue

    Commissions


  3. Click Save.
  4. Click OK in the confirmation.
  5. Select the Descriptive Text tab.
  6. Enter any text here to describe what is included in this category or details about policies, and format it appropriately.
  7. Click Reorder Components at the top of the page.
  8. Select Descriptive Text and click the downward arrow until Descriptive Text appears below Graphs.
  9. Click OK.
  10. Click Save and Close.

Creating a Stock History Category: Worked Example

This example demonstrates how to create a stock history category for nonqualified stock options with vesting information.

The following table summarizes key decisions for the category in this scenario.


Decision to Consider

Category in This Example

What is the category type?

Stock History

Display category details in the statement at what level?

Viewers see all details on one page.

Add items? (Describe)

Not applicable

Add other categories as subcategories? Describe

Not applicable

Display graphs? (No or Yes?) One or two? What type?

Yes. One: Bar.

Hide or edit any columns in the category?

Accept most default column visibility settings. Make some adjustments to visibility of vested share columns and grant number. Edit some column labels for display on the statement.

Display the row if values are zero in the period?

Not applicable

Create a stock history category and configure column visibility and graphs.

Note

The Stock Details table must contain stock data.

Entering Category Details and Configuring Columns

  1. In the Compensation work area, click Manage Compensation Categories to open the Manage Compensation Categories page.
  2. Click Create.
  3. On the Create Compensation Categories page, complete the fields, as shown in this table.

    Field

    Value

    Name

    Stock History

    Category Type

    Stock History


  4. Click Continue.
  5. On the Create Category page, Table tab, select Non-Qualified Stock Option in the Grant Type field.
  6. Edit the column labels and availability of column types, as shown in this table, using the default values of columns not listed.

    Sequence

    Column Type

    Column Label

    Available for Display

    1

    Original Grant Date

    Grant Date

    (Use default)

    3

    Grant Number

    (Use default)

    Select

    10

    Original Value at Grant

    Grant Value

    (Use default)

    16

    Estimated Market Value of Total Shares

    Estimated Market Value

    (Use default)

    17

    Vested Shares

    (Use default)

    Select

    18

    Exercised Shares

    (Use default)

    Select

    20

    Estimated Gain from Vested Shares

    (Use default)

    Deselect


Configuring Display Options.

  1. Select the Graphs tab.
  2. Complete the fields, as shown in this table.

    Field

    Value for the First Graph

    Graph Title

    Vested Versus Unvested Shares

    Graph Type

    Bar

    Nonmonetary Graph Items

    Vested Shares, Unvested Shares


  3. Click Save.
  4. Click OK in the confirmation.
  5. Select the Descriptive Text tab.
  6. Enter any text here to describe what is included in this category or details about policies, and format it appropriately.
  7. Click Reorder Components at the top of the page.
  8. Select Descriptive Text and click the downward arrow until Descriptive Text appears below Graphs.
  9. Click OK.
  10. Click Save and Close.

Creating a Total Compensation Statement: Worked Example

This example demonstrates how to create, generate, and view a total compensation statement that contains two top-level categories, one for cash compensation and one for stock. The statement definition is for individual contributors whose salaries are quoted on an annual basis. The categories added as subcategories have already been created for other statement definitions and are reused in this definition.

The following table summarizes key decisions for the compensation item in this scenario.


Decision to Consider

Item in This Example

What compensation does the item represent?

Base pay for exempt workers with annual salary

What is the source type?

Payroll element

What is the legislative data group?

USA

The following table summarizes key decisions for the categories in this scenario.


Decision to Consider

Cash Compensation Category

Stock Category

What is the category type?

Cash Compensation

Other

Display category details in the statement at what level?

Display details of item and subcatgory rows on separate pages that viewers drill to for details.

Display details of item and subcatgory rows on separate pages that viewers drill to for details.

Add items? (Describe)

Yes: Base pay for exempt workers

Not directly, only through subcategories.

Add other categories as subcategories? Describe

Yes. One: Bonuses Exempts

Yes. Two: ESPP Exempts and Stock History Exempts

Display graphs? (No or Yes?) One or two? What type?

Yes. Two: Bar and stacked bar.

No

Hide or edit any columns in the category?

Hide worker contributions because this is a cash compensation category. Edit subcategory names to make them familiar to workers.

Edit subcategory names to make them familiar to workers.

Display the row if values are zero in the period?

No

Display the Employee Stock Purchase Plan row but prevent drilling to details.

The following table summarizes key decisions for the statement definition in this scenario.


Decision to Consider

Statement Definition in This Example

Include which top-level categories?

Cash Compensation and Stock

What is the statement period?

Calendar year 2010

Also create a second annual period to be ready for the next year.

Include welcome message?

Yes. Address recipients by first name.

Include summary page?

Yes

What is the statement audience for eligibility?

Individual contributors whose salaries are quoted on an annual basis

What is the population for statement generation?

Legal employer: Infusion USA

Summary of the Tasks

Create a new total compensation statement definition using a new item and two new categories that you create, assembled with some existing categories that contain items. Generate and view statements using the new definition.

  1. Create a compensation item.

  2. Create a cash compensation category and add the item and a subcategory.

  3. Create a stock category and add subcategories.

  4. Create a statement definition.

  5. Configure optional eligibility and statement summary page.

  6. Generate and view statements.

Prerequisites

  1. Create a payroll element named Base Pay Exempts that represents base pay earnings for salaried exempt workers in the USA legislative data group.
  2. Create the following compensation categories with items:
    • Bonuses Exempts

    • ESPP Exempts

    • Stock History

  3. Create an eligibility profile named IC Annual Salary that identifies individual contributors who are salaried with annual salary basis.

Creating a Compensation Item

Use the default values except where indicated.

  1. In the Compensation work area, click Manage Compensation Items to open the Manage Compensation Items page.
  2. Click Create.
  3. On the Create Compensation Item page, complete the fields as shown in this table:

    Field

    Value

    Item Name

    Base Pay Exempts

    Source Type

    Element entry

    Legislative Data Group

    USA

    Payroll Element

    Base Pay Exempts

    Input Value

    Pay Value


  4. Click Save and Close.

Creating a Cash Compensation Category

Create a cash compensation category and attach the base pay item you created along with two existing cash categories with items. Use the default values except where indicated.

  1. Enter category details and add an item.
  2. Add and configure subcategories.
  3. Configure display options.

1. Enter category details and add an item.

  1. In the Compensation work area, click Manage Compensation Categories to open the Manage Compensation Categories page.
  2. Click Create.
  3. On the Create Compensation Categories page, complete the fields, as shown in this table.

    Field

    Value

    Name

    Cash Compensation

    Category Type

    Cash Compensation


  4. Click Continue.
  5. On the Create Category page, Table tab, select Viewers drill into line items to see details in the Level of Detail field.
  6. Click Add Items.
  7. Complete the column fields in the new row, as shown in this table.

    Column

    Value

    Name

    Salary

    Description

    Base pay amounts

    Company Contribution

    Base Pay Exempts


  8. Click Edit Column Properties and select the Your Contribution column.
  9. Select Do not display in the statement.
  10. Click OK.
  11. Click Edit Column Properties and select the Company Contribution column.
  12. Enter Amount in the Column Label field.
  13. Click OK.

2. Add and configure a subcategory.

  1. Click Add Subcategory.
  2. On the Select and Add: Categories page, select Bonuses Exempts.
  3. Click Apply.
  4. Click Done.
  5. Complete the fields, as shown in this table, for the new category row.

    Column

    Value

    Name

    Bonuses

    Description

    Lump sum compensation amounts


  6. Click Save.
  7. Click OK in the confirmation.

3. Configure display options.

  1. Select the Graphs tab.
  2. Complete the fields for two graphs, as shown in this table.

    Field

    Value for Graph 1

    Value for Graph 2

    Graph Title

    Your Cash Awards

    Total Cash Compensation

    Graph Type

    Bar

    Bar - stacked

    Graph Items

    Amount

    Amount


  3. Click Save.
  4. Click OK in the confirmation.
  5. Select the Descriptive Text tab.
  6. Enter any text here to describe what is included in this category or details about the compensation policies, and format it appropriately.
  7. Click Reorder Components at the top of the page.
  8. Select Descriptive Text and click the downward arrow until Descriptive Text appears below Graphs.
  9. Click OK.
  10. Click Save and Close.

Creating a Stock Category

Create a stock category and attach two existing stock categories with items. Use the default values except where indicated.

  1. Enter category details.
  2. Add and configure subcategories.
  3. Configure display options.

1. Enter category details.

  1. On the Manage Compensation Categories page click Create.
  2. On the Create Compensation Categories page, complete the fields, as shown in this table:

    Field

    Value

    Category Name

    Stock Awards

    Category Type

    Other


  3. Click Continue.
  4. On the Create Category page, Table tab, select Viewers drill into line items to see details in the Level of Detail field.

2. Add and configure subcategories.

  1. Click Add Subcategory.
  2. On the Select and Add: Category page, select the row for ESPP Exempts.
  3. Hold down the Control key and select the Stock History Exempts row.
  4. Click Done.

3. Configure display options.

  1. On the Create Category page, Table tab, edit the subcategory names as shown in this table:

    Column

    Stock History Category

    ESPP Category

    Name

    Stock Options

    Employee Stock Purchase Plan


  2. Click Edit Column Properties and select the Company Contributions column.
  3. Change the column label to Stock Award.
  4. Click OK.
  5. Select the Employee Stock Purchase Plan row.
  6. In the Action menu, select Configure Zero Value Behavior of Row.
  7. On the Zero Value Behavior page, complete the fields as shown in this table:

    Field

    Value

    Zero Contributions Display

    Display the row and prevent drilling to subcategory

    Alert Message

    Enter any text to display when workers have no stock to display.


  8. Click OK.
  9. Click Save and Close.

Creating a Statement Definition

Create a statement definition and configure the statement table display, periods, and welcome message. Use the default values except where indicated.

  1. Enter statement details and add top-level categories.
  2. Configure table display options.
  3. Define statement periods and welcome message.

1. Enter statement details and add top-level categories.

  1. In the Compensation work area, click Manage Statement Definitions to access the Manage Statement Definitions page.
  2. Click Create.
  3. In the Create Statement Definition window, enter any name for the statement, such as 2010 Annual Statement.
  4. Click Continue.
  5. On the Create Statement Definition page, enter any description of the statement.
  6. Click Add Category.
  7. On the Select and Add: Categories page, select the two categories that you created: Cash Compensation and Stock.
  8. Click Apply.
  9. Click Done.

2. Configure table display options.

  1. On the Statement Definition Details tab, edit the top-level category names in the Display Name column to make the names more familiar to workers.
  2. In the Description column, add descriptions that display in the statement, as needed.
  3. Select Reorder Top-Level Categories in Statement from the Actions menu.
  4. Select the first category and use the downward arrow to place it after the other category.
  5. Click OK.
  6. Click Save.
  7. Click OK in the confirmation.

3. Define statement periods and welcome message.

  1. Select the Statement Periods tab.
  2. Click Add.
  3. Complete the fields to create two annual periods, as shown in this table:

    Field

    Value

    Start Date

    01-Jan-2010

    End Date

    31-Dec-2010

    Date Available to Workers

    01-Mar-2010

    Currency Conversion Date

    31-Dec-2010

    Number of Periods

    2


  4. Click OK.
  5. In the Display Name column, add a display name for each period, such as 2010 Annual Statement and 2011 Annual Statement.
  6. Click the icon in the Welcome Message column to compose a welcome message that workers see as the first page in the statement.
  7. Type Dear followed by a space.
  8. Click Insert Name.
  9. In the First Name row, click the Insert Segment icon.
  10. Click Done.
  11. Enter a comma after the first name placeholder in the welcome message.
  12. Use the rich text editor to complete the welcome message.
  13. Click Save and Close.

Configuring Optional Eligibility and Statement Summary Page

  1. Select the Statement Options tab.
  2. In the Eligibility Profile field, select IC Annual Salary.
  3. Click Configure Summary Page.
  4. In the Monetary Compensation section, select the Table tab and verify the table contents.
  5. Select the Graphs tab.
  6. Complete the fields, as shown in this table.

    Field

    Value for the First Graph

    Value for the Second Graph

    Graph Title

    Your Total Compensation

    How Your Compensation Adds Up

    Graph Type

    Bar

    Bar - stacked

    Graph Items

    Company Contributions

    Company Contributions


  7. Click Save.
  8. Click OK in the confirmation.
  9. Select the Descriptive Text tab.
  10. Enter any text that you want to display in the summary page specifically related to monetary compensation.
  11. Scroll down to the Summary Page Descriptive Text section and expand it.
  12. Enter some text, such as: The summary provides you an overview of your compensation package. Click each category name to view additional details.
  13. Click Save and Close.
  14. Click OK in the confirmation.
  15. Click Finish to validate the statement.

Generating and Viewing Statements

Update global settings, run the process to generate the statements, check the process reports, and view workers' generated statements. Use the default values except where indicated.

  1. Generate statements.
  2. Monitor the process.
  3. View the statements.

1. Generate statements.

  1. In the Total Compensation Statements work area, click Configure Global Settings to access the Configure Global Settings page.
  2. Complete the fields used for default stock estimates in the statement, as shown in this table.

    Field

    Value

    Default Stock Price

    35

    Currency

    US Dollar


  3. In the Total Compensation Statements work area, click Generate Statements to access the Process Details page.
  4. On the Process Details page, complete the fields, as shown in this table.

    Field

    Value

    Statement Definition Name

    2010 Annual Statement

    Statement Period

    2010 Annual Statement

    Legal Employer

    Infusion USA


  5. Click Submit.
  6. Click OK in the information window.

2. Monitor the process.

  1. In the Total Compensation Statements work area, click Monitor Processes to access the Monitor Total Compensation Processes page.
  2. Find your process in the table.
  3. If the status is Processing, click Refresh.
  4. When the status is Completed, click the icon in the Reports column for your process ID.
  5. Analyze the summary details.

3. View the statements.

Note

You must have the Compensation Manager role to view statements.

  1. Click the Details tab to see the workers for whom statements were generated.
  2. Click the icon in the View Statement column for a worker.
  3. Verify the statement content and formatting.
  4. Click Processing Reports in the task pane to return to the report Details tab.
  5. View and verify additional statements as needed.
  6. Click Sign Out.
  7. Close the Browser.

FAQs for Manage Compensation Items, Categories, and Statement Definitions

How can I change whether the category displays zero values in the statement?

Select the category or item row, and then select the zero value display option in the Actions menu. The Display Zero Rows column shows the current setting for each category. On the Edit Statement Definition page you can edit only the top-level category. You must edit subcategory and item rows on the Edit Compensation Categories page.

How can I display a hidden column?

Click the Column Properties button and select the column from the menu. Update the option to display the column in the statement.

On the summary page you can edit only summary table column properties. You must edit each individual category's column properties on the Edit Compensation Category page.

How can I hide or show the welcome message in total compensation statements?

First select the statement definition and click Edit. On the Periods tab, select the icon in the Welcome Message column. Edit the Do not display welcome message option.

How can I change welcome message text in total compensation statements?

First select the statement definition and click Edit. On the Periods tab, select the edit icon in the Welcome Message column.

Why can't I delete or edit some items?

If the item is in use in a compensation category, it cannot be deleted and you cannot edit some attributes, such as the type of compensation and nonmonetary unit of measure.

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.

How can I import stock data sent to me by my vendor??

On the Manage Stock Grants page, use the Prepare Import Spreadsheet button to generate the stock table spreadsheet. Enter your vendor's data and upload it into the stock table.

Can I reuse a previous year's statement?

Yes. You can reuse an existing statement definition by adding new periods. You might also want to update the welcome message, add or edit the items and categories included, and hide or update the display of graphs, descriptive text, and supplementary information.

Can I correct the definition after workers received statements?

Yes. You can correct the statement definition and regenerate the statements, which makes the newer version available to workers.