Refreshing Worker Compensation Information

This chapter provides overviews of compensation defaults and salary plan compensation defaults and explains how to refresh worker compensation packages.

Understanding Compensation Defaults

When you hire a worker or update a worker’s Job record, the system enters default compensation information in the Job record or leaves the compensation fields blank for manual entry. The source of the default compensation depends on the way you set up salary plan defaults, the nature of the worker’s job change, or both.

Changing a Compensation Package

When you make a change to any element of a worker’s Job record that affects compensation, the system resets the compensation components when you click the Default Pay Components button on the Compensation page of the Job Data component. The system does the following:

Executes rate code defaulting, excluding seniority pay, based on the current defaulting values.

You define these values when you set up rules-driven component defaulting.
Executes rate code defaulting, excluding seniority pay, based on a rate matrix.

You can associate a rate matrix when you set up rules-driven component defaulting.
Replaces manual updates in default components with the current default values.
Replaces the default values in non-updateable components with the current default values.
Recalculates any compensation-related fields on the Job record, for example, comp rate, annual, hourly, daily amounts, compa-ratio, and so on.

If you don't click the Default Pay Components button after updating any relevant Job Data fields, the system issues a warning message when you attempt to save the new record. Click Cancel and go to the Compensation page, where you can click the Default Pay Components button and make any required changes manually. If you don't click the Default Pay Components button, the compensation package is not reset until the next time the default component logic is triggered (either by clicking this button or by a batch update process).

Recalculating Compensation

Click the Calculate Compensation button (on the Compensation page) to have the system recalculate the worker’s compensation without executing any rate code defaulting or replacing any default values. You need to recalculate if you manually added new components or updated the values on existing components of the worker's compensation record. You cannot save the record after modifying the worker’s pay components without recalculating the compensation.

Understanding Salary Plan Compensation Defaults

You specify a worker's salary administration plan, labor agreement, grade, and step on the Job Data - Salary Plan page. When you hire a worker or make a change to his or her Job record, the system enters default salary plan information in the Job record or leaves the salary plan fields blank for manual entry. The source of the default compensation depends on the way you set up salary plan defaults, the nature of the job change, or both.

Setting Up Salary Plan Defaults

Use the LOCATION_TABLE component interface to load data into the tables for these component interfaces.

You can assign default salary plans, grades, and steps to a worker in one or a combination of the following ways:

Associate the salary plan with a location on the Location Profile page.
Associate the salary plan with a job code on the Job Code Table - Default Compensation page.

If there is no salary plan associated with the location entered on the Job Data - Work Location page, the system will enter the salary plan (and step and grade, if applicable) associated with the job code you enter on the Job Data - Job Information page.
Assign a salary plan directly to a worker on the Job Data - Salary Plan page.

You can enter a salary plan directly on the Job Data - Salary Plan page if there is no job code associated with the selected location or job code. You can also override any defaulted salary plan, step, or grade values.
Associate a salary plan with a labor agreement on the Salary Plan Grades page.
Associate a salary plan with a labor agreement directly to a worker on the Job Data - Salary Plan page.

The system verifies that the combination of salary plan, steps, and grades that you enter in the Job Data component is valid and exists in the system. If the combination does not exist, the system issues a warning message.

Note. If you want to use the Default Pay Components functionality to automatically enter step component rates in Job Data, select Multi-step Grade on the Installation Table - HRMS Options page.

The system enters default values into the step components and other compensation fields when you click the Default Pay Components button. Only salary plan information defaults when you make a change to the job or location fields.

Salary Administration Plan Defaulting at Hire

The system enters the following salary administration plan when you hire a worker:

If you have associated a salary administration plan with the location selected on the Job Data - Work Location page, the system will enter the salary plan on the Job Data - Salary Plan page.
If you have associated a salary administration plan with the job code selected on the Job Data - Job Information page and not associated a salary plan with the selected location, the system will enter the salary plan (grade and step, if applicable) on the Job Data - Salary Plan page and leave the compensation information fields blank and available for entry.
If you have a salary administration plan associated with both the location and the job code, the system will use the default value associated with the selected location.
If you have not associated a salary administration plan with either the location or job code, the system will leave the salary plan, grade, and step fields available for entry.
You may override the default salary administration plan values, provided that the new values are valid.

Note. If you have not associated a salary administration plan with either the location or job code, but have associated a base rate code with the job code, the system will insert the base rate code information when you click the Default Components button on the Job Data - Compensation page.

Salary Administration Plan Defaulting After Hire

The system enters the following default information when you enter a new location in the Job record of an existing worker:

If there is a salary plan associated with the new location, the system checks the existing grade and step values against the grade and step values of the salary plan.

If the grade and step are valid for the new location's salary plan, the system enters the new salary plan on the Job Data - Salary Plan page.
If the grade and step are not valid for the new location's salary plan, the system leaves the existing salary plan value. This ensures that the worker is not inadvertently left without a compensation plan.

If you want to change the grade and step as a part of your update, you must change the salary plan to one that includes the new grade and step.

The system enters the following information when you enter a new job code in the Job record of an existing worker:

If there is a salary plan associated with the new job code and not with the location code, the system enters the salary plan, grade, and step information associated with the job code.
The system does not enter the base rate code associated with the new job code but inserts the default compensation data from the previous data row.

Note. When you click the Default Pay Components button, the system does not insert into an existing Job record the base rate code information associated with the new job code. It only inserts this information when you create a new Job record (that is, when you hire a worker).

Refreshing Worker Compensation Packages

To refresh worker compensation packages, use the Refresh Compensation (RUN_CMP015) component.

Use the Refresh Employee Compensation Application Engine process (HR_CMP015 ) to update worker compensation packages. This process recalculates compensation based on the current values in the system and automatically populates the correct compensation amount by inserting a new Job row (unless there is no change to a worker’s compensation). The process replaces manual changes with the new default values.

Understanding the Refresh Employee Compensation Process

The Refresh Employee Compensation process executes the same steps as the Default Pay Components button on the Compensation page; however, it enables you to update several records at once.

The Refresh Employee Compensation process:

Inserts a new Job row when you select Add new effective date with the effective date you entered in the As Of Date field.
Updates the job row that is effective as of the date you select in the As Of Date field.
Updates any future rows when you select Update Future Rows. (A future row is one that comes into effect after the as of date.)

Page Used to Refresh Worker Compensation Packages

Page Name	Object Name	Navigation	Usage
Refresh Employee Compensation	RUNCTL_CMP015	Workforce Administration, Collective Processes, Refresh Compensation	Refresh multiple worker compensation packages with current default values, and print a report that displays the new and previous compensation data of the impacted workers.

Running the Refresh Employee Compensation Process

Access the Refresh Employee Compensation page.

Report Parameters

As Of Date and Correction on current Info.	Select to update data and override information in worker records. The system updates the record that is effective as of the date you enter.
As Of Date and Add new effective date	Select to insert a new effective-dated row using As Of Date as the new effective date. For example, you enter 01/01/2003 in As of Date and run the process. The process inserts a new Job row with an effective date of 01/01/2003. If a record already exists with this effective date, the system inserts a row with the date and a sequence number.
Update Future Rows	Select to update all existing future effective-dated rows, in addition to the effective-dated row already being added or corrected. (A future effective-dated row is one that has an effective date later than the As Of Date you specify.)
Don’t Absorb Changes	Select to leave absorbable rate codes unchanged when the defaulted salary amount changes. This option only applies to workers who have a target compensation rate and are assigned to a salary plan with the Auto Calculated Premium function enabled.

Process By

Group ID	Select to process by group ID. The update process selects all workers with the group ID you specify.
All	Select to process all workers to whom you have security access.

Running the Refresh Employee Compensation Process and Report

To run the process, select Refresh Employee Compensation (HR_CMP015) Application Engine process on the Process Scheduler Request page.

After you run this process, you can run the Refresh Employee Compensation report (CMP015) to review the data that has been updated. This report displays the new and previous compensation data for the impacted workers.