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Compensation and the Ratings Distribution

When managers submit the reviews, reviews are assigned a status of PDA (Pending Distribution Approval). The status for the performance reviews does not change until the organization finishes the Rating Distribution process.

If employees receive compensation for performance and a budget is provided, Siebel Objectives and Reviews interprets the ratings and calculates suggested compensation amounts according to compensation plan guidelines. The compensation plan, a budgeted set of merit, bonus, stock, or promotion recommendations covering the manager's team of direct and indirect reports, is rolled down to a first-level manager by the supervisory manager.

The ratings-based compensation amounts for each employee appear in the MyTeam's Compensation list. The view lists each employee's rating, the performance range, a rating guideline indicator for each record, and navigation links to each employee's performance review.

Managers can edit individual employee objectives scores, comments and weights during the rating adjustment process period, but they cannot modify the overall score. Modifying the overall score can only occur by using the compensation planning tool as part of the ratings adjustment process. The compensation tool flags those manager ratings that are higher or lower than the mandated guidelines for the rating distributions.

Managers can also see the latest adjusted rating in Objectives and Reviews while reviews are in PDA status. If a change in the rating occurs, the compensation guidelines for individual employees are automatically recalculated.

After scores and compensation amounts are adjusted, the manager's compensation plan is submitted to the next-level manager for approval.

The Pending Distribution Approval status changes to the Manager to Release status when the compensation cycle is completed. To complete this process, the administrator must release the reviews from within the Administration - Compensation Planning screen's Compensation Plan Rules Administration view (Planning Cycles visibility filter). The compensation plan must be closed by the final approver before the administrator can click the Release Reviews button.