Setting Up a Compensation Scenario

To set up a compensation scenario, use the WA_CP_ELEM_DFN.GBL, WA_CP_GOALMTRX_DFN.GBL, WA_CP_MERIT_DFN.GBL, WA_CP_PYOUT_DFN.GBL, WA_CP_BASE_PAY.GBL, WA_CP_RULE_DFN.GBL, WA_CP_OTHER_DFN.GBL, and WA_CP_MODEL_DFN.GBL components.

This section discusses how to:

Link employee information to a compensation scenario.
Define performance-based calculation rules with a goals matrix.
Define base compensation increase rules with a merit matrix.
Control compensation distribution payout rules.
Define base pay rules.
Define variable pay rules.
Specify other pay rules.
Define frequency details for compensation models.
Set up workforce groups for compensation models.
Set up model IDs for compensation models.
Define a compensation planning and simulation model.
Set up compensation scenario IDs.
Set up the Compensation Planning and Simulation process run control.
Run the Compensation Planning and Simulation process.
Review and alter compensation planning scenario data using the Analytic Calculation Engine (ACE).

Pages Used to Set Up and Run a Compensation Scenario

Page Name	Definition Name	Navigation	Usage
Data Element	WA_CP_ELEM_DFN	select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Data Elements, then select Data Element	Create data elements that link employee-based information in the system to compensation planning rules.
Goals Matrix	WA_CP_GOALMTRX_DFN	select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Goals Matrix, then select Goals Matrix	Define performance-based calculation rules for group or employee performance based on a goals matrix.
Merit Matrix	WA_CP_MERIT_DFN	select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Merit Matrix, then select Merit Matrix	Create a merit matrix which defines the amount rules for base compensation increases for your workers.
Payout Rule	WA_CP_PYOUT_DFN	select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Payout Rules, then select Payout Rule	Establish the amount rules for how to pay out compensation based on a flat amount, percentage of base pay, or criteria in a data element.
Base Pay Compensation Rule	WA_CP_BASE_PAY	select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Base Pay Rules, then select Base Pay Compensation Rule	Create a base pay compensation rule.
Variable Pay Rule	WA_CP_VC_PAY	select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Variable Pay Rules, then select Variable Pay Rule	Create a variable pay compensation rule, for bonuses for example.
Other Pay Rule	WA_CP_OTHER_PAY	select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Other Pay Rules, then select Other Pay Rule	Create other pay rules, for benefits for example.
Compensation Model	WA_CP_MODEL_DFN	select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Compensation Model, then select Compensation Model	Set up a model to bring together the workforce groups and compensation rules needed to run a scenario.
Workforce Group Description	WA_CP_MODEL_SEC1	Click the Workforce Group Info (information) button alongside the group ID field on the Compensation Model page.	View a description of the workforce group.
Compensation Rule Description	WA_CP_MODEL_SEC2	Select the Compensation Rule Info (information) button alongside the rule ID field on the Compensation Model page.	View a description of the compensation rule.
Run Compensation Scenario - Run Jobstream	RUN_PF_JOBSTREAM	select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Run Compensation Scenario, then select Run Compensation Scenario - Run Jobstream	Run the compensation planning and simulation process.

Data Element Page

Use the Data Element page (WA_CP_ELEM_DFN) to create data elements that link employee-based information in the system to compensation planning rules.

Navigation

select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Data Elements, then select Data Element

Image: Data Element page

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

Data elements, at their most simple level, define information that you link to an employee. At a more complex level, you use data elements when you build compensation rules, to tell the system what data to retrieve about your workforce groups, and what performance measures to apply to your compensation scenario.

Selecting a Data Element Type

Select a Data Element Type from the list of translate table values:

DataSet

A calculation amount resolved for each employee subject to this rule. DataSets are data pointers from DataMaps. They point to measurable data about an employee, in the data warehouse tables. DataSets provide you a means of defining a set of information to use in Application Engine processes.

When you select the DataSet option the Constraint Code field and Compile button display. Once you select the Constraint Code, the Dimension and Measure ID fields also display. The DataSet definition you specify with these fields determines the type of measure used in the Compensation Planning and Simulation process (WA_CPS).

Goals Matrix Score

When you select this option, the Goals Matrix ID field appears. Prompt values for this field are from the WA_CP_GOAL_DFN table. You create goals matrices using the Goals Matrix page.

KPI Assessment Value

The KPI Assessment Value is a numeric value for the assessment, or scoring, of a KPI (Key Performance Indicator). You create KPIs in Scorecard. The KPI is scored when the KPI Resolved Value is compared to a target value.

When you select KPI Assessment Value the KPI ID field displays. Prompt values for this field are from the WA_KPI_DFN_VW table.

KPI Resolved Value

The KPI Resolved Value is the calculated value of the KPI. You define them using the KPI Manager, in Scorecard. When it is compared, or scored, against a target value, the result is a numeric KPI Assessment Value.

When you select KPI Resolved Value, the KPI ID field displays. Prompt values for this field are from the WA_KPI_DFN_VW table.

DataSet Data Element Type

Constraint Code

For a Data Element Type of DataSet select the Constraint Code for the system to use for every compensation rule to which the data element is applied. Constraints are collections of filters you use to define business rules for processing, and return desired data from a given DataMap. This field prompts values from constraints you define with the Constraint component. The prompt values are from the PF_CONSTR_DFN table.

Dimension

Select a dimension from the prompt list values, which are from the WA_DM_DIM_VW table. The most common dimensions for Workforce Analytics that repeatedly appear in the DataMaps are business unit, employee identification, department identification, location code, and job code.

Measure

Specify the Measure ID for the Dimension. The prompt values are from the WA_DM_MEAS_VW table.

Compile

For a Data Element Type of DataSet, click the Compile button. This triggers the system to build the underlying SQL. Otherwise the system builds it automatically on saving the page. After building the SQL the system displays the SQL Object ID Prefix, a system-generated number identifying the location of the SQL in the SQL Repository.

Goals Matrix Score Data Element Type

For a Data Element Type of Goals Matrix Score, first create the Goals Matrix on the Goals Matrix page. Then, while still on that page, choose to have the system automatically create a corresponding Data Element with the same name. If you already have a Goals Matrix built, and you want to define a Data Element with a different name, then create the Data Element using this page. In either case, each Goals Matrix ID must be linked to a corresponding Data Element ID.

Some Important Points about Creating KPIs for Use with Workforce Rewards

When you use Scorecard to create KPIs for use in Workforce Rewards, remember the following important points:

The Enterprise Scorecard pages you use to create KPIs are located by navigating to Key Performance Indicators, Define KPI's. They are as follows:
- Data Element Definition (if you are using data elements in your KPI.)
- Calculation Definition.
- Assessment Definition (if you are using a target rule, then specify the assessment usage as Workforce Analytics to ensure required values are populated.)
- KPI Definition.
- KPI Calculation Rule.
- KPI Object.
- KPI Target Rule (if you are using assessed values then specify the target rule type as Workforce Analytics.)
Specify the model IDs for your KPIs in the KPI Model column, on the EPM Foundation, Business Metadata, Business Framework, Scenarios - Forecast Business Rules page.
Processing is done by using the Workforce Rewards jobstreams (either WA_CPS or WA_RETENT). None of the KPI jobstreams need to be run if the KPI is only used in Workforce Rewards.)

Workforce-specific KPIs are delivered with Workforce Scorecard. If your implementation includes Workforce Scorecard, you can use those KPIs on the Data Element page in Workforce Rewards.

Note: You can only use the KPI-related options if your implementation includes Scorecard or Workforce Scorecard.

Goals Matrix Page

Use the Goals Matrix page (WA_CP_GOALMTRX_DFN) to define performance-based calculation rules for group or employee performance based on a goals matrix.

Navigation

select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Goals Matrix, then select Goals Matrix

Image: Goals Matrix setup page

This example illustrates the fields and controls on the Goals Matrix setup page. You can find definitions for the fields and controls later on this page.

Indicating the Number of Award Levels in the Scale

Number of Levels

Select the number of pay out, or performance measure, levels you want to include in your Goals Matrix. Valid values from the translate table are Three Levels, Five Levels and Seven Levels.

Scale and Scale Values

Based on the number of levels you select, the corresponding number of level fields display in the Scale group box, and the same number of performance measure columns display on the Scale Values tab at the bottom of the page.

Using the Scale Group Box

The system labels the lowest, middle, and highest levels of the scale the Threshold, Target and Stretch, respectively:

Threshold

This is the performance level for minimum adequate performance, the designated level of performance below which it is inappropriate to pay incentives.

Target

This is the performance level your organization establishes as the norm for performance and pay out.

Stretch

This is the performance level for which an employee achieves maximum pay out. Performance above this level receives no greater pay out.

Scale Group Box

Scale

If you are using the Goals Matrix in a Formula Plan, you enter the exact pay out amounts you want to apply to each level in this group box. The amounts you enter in these fields are paid out based on the pay out scores calculated for the performance goals in the grid at the bottom of the page.

If you use the Goals Matrix in a Target Plan, then you use this group box as a standardizing scale, to standardize data elements to a common scale of measurement. The values you enter in the levels are used by the system to standardize the pay out scores for the performance goals in the grid at the bottom of the page. There are different approaches you can take depending on how diverse your performance goals are:

If your performance measures are diverse, and do not share a common dimension or even a common range of values, you might want the range of values in these fields to run from 0 to 100, to help standardize the measures. In this case the field values might be 0, 50, and 100, respectively, for a three level scale.
If your performance measures share a common dimension, such as revenue, then you might want the range of values on the scale to cover a common range of revenue.

Using the Matrix Group Box

Your goals matrix is made up of performance goals (which are the rows), and performance measures (which are the columns). Individual performance goals are defined using data elements. You create data elements using the Data Element page. On the average, a goals matrix may have from three to five goals, but some may have as many as ten. To list multiple goals in the Goals Matrix, place the cursor in the Data Element ID field and insert additional data rows.

For each individual goal follow these steps:

On the Matrix Elements tab, define the goal by selecting a Data Element ID from the prompt list values from the WA_CP_ELEM_VW table.
Enter a weight value for the goal in the Weight% (weight percentage) field. The system totals the weight percentages for all of the goals and displays the figure in the Total Weight field at the bottom of the page. You must ensure that the cumulative weights for all of your goals adds up to 100.00.
In each of the performance measure columns on the Scale Values tab, enter the Threshold, Target and Stretch values for this specific goal. For example, if the goal is Quarterly Billable Hours, and there are three levels, the performance measure values might be 200, 300, and 400 hours respectively.

Performing Goals Matrix Calculations for a Target Plan

Create a goals matrix with this page for use in conjunction with a compensation plan type called a target plan. The system uses the Goals Matrix to calculate a total score for an employee. The system compares the employee's total score to the scoring criteria defined in the target matrix in the Compensation Rules component, and determines the monetary value of the pay out the employee receives based upon their performance. Here's an example of how this calculation process works:

For this example let's take a goals matrix for employees who are off-site consultants, that calculates their quarterly bonus. We have three goals: billable hours (with values of 200, 300, and 400), customer satisfaction rating (with values of 1,2, and 3), and customer courses taught (with values of 2, 4, and 6). Because the goals are so different, we standardize them using a three level scale of 0, 50, and 100. Our Scale and goals look like this:

Scale or Goal	Weight	Threshold	Target	Stretch
Scale		0	50	100
Billable Hours	50%	200	300	400
Customer Satisfaction Rating	25%	1	2	3
Courses Taught	25%	2	4	6

An employee, William Avery, has 350 billable hours, a customer satisfaction rating of 3, and he has taught 3 customer courses. Here's what happens when the system uses this goals matrix to evaluate his performance.

The system looks at his 350 billable hours, and interpolates this against the scale. (Interpolation means using an equation to calculate the value in between two known values.) The system does the same for his customer rating of 3, and his 3 courses. The results of the interpolation are as follows:

Goal	Employee's Performance	Interpolated Scale Value	Explanation
Billable Hours	350	75	Because 350 is midway between 300 and 400, the system interpolates that 75 is midway between the standardized scale values of 50 and 100.
Customer Satisfaction Rating	3	100	3 corresponds exactly to 100 on the scale.
Courses Taught	3	25	Because 3 is midway between 2 and 4, the system interpolates that 25 is midway between the standardized scale values of 0 and 50.

The interpolated scale value is the employee's actual performance standardized against the scale. Then, for each goal, the system multiplies the interpolated scale value by the weighting, to create a weighted rating for the goal. Then the system adds up the weighted ratings for all of the goals to get a total score.

The calculation process looks like this:

Goal	Weight	Employee's Performance	Interpolated Scale Value	Weighted Rating
Billable Hours	50%	350	75	.5 x 75 = 37.5
Customer Satisfaction Rating	25%	3	100	.25 x 100 = 25
Courses Taught	25%	3	25	.25 x 25 = 6.25
Total Score				37.5 + 25+ 6.25 = 68.75

The system then compares the employee's total score against the scoring criteria defined in the target matrix in the Compensation Rules component, and determines the monetary value of the pay out the employee receives based upon their performance. For example, if the target matrix indicates that all employees with a goals matrix score between 50 and 75 should receive a bonus pay out equal to 2 percent of their base pay, then the system calculates a 2 percent bonus for William Avery.

Performing Goals Matrix Calculations for a Formula Plan

Create a goals matrix with this page for use in conjunction with a compensation plan type called a formula plan. In the formula plan, the pay out score is calculated in association with a payout rule. The payout rule must have a payout type of data element, where the data element is a goals matrix such as the one in the previous example. The pay out score is calculated from the goals matrix, as in the prior example, and interpolated against the monetary amounts in the scale to determine the actual pay out amount.

Creating a Data Element From the Goals Matrix

Create Data Element on Save

You already created the individual data elements used in this goals matrix using the Data Element page. Once the goals matrix is complete, make it into a data element as well. You can do this in two ways. The system creates the data element for you.

If this is a new goals matrix ID, and you want the corresponding data element ID to have the same name, select this check box and save the page. This is the default setting for the check box .

If you want the data element to have a different name to the goals matrix, clear the Create Data Element on Save check box.

Merit Matrix Page

Use the Merit Matrix page (WA_CP_MERIT_DFN) to create a merit matrix which defines the amount rules for base compensation increases for your workers.

Navigation

select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Merit Matrix, then select Merit Matrix

Image: Merit Matrix page

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

Rating Model

Select a Rating Model from the prompt list values, which are from the WA_RTGMDL_R00 table.

Completing and Using the Merit Matrix

Review Rating

As in HRMS, a merit matrix provides the salary increase parameters for each review rating in a rating model. To complete the merit matrix, you begin with the Review Rating column. Place the cursor in the Review Rating column, and select a rating from the prompt list values, which are from the WA_REVWRTG_R00 table.

Insert an additional row of data for each Review Rating in the Rating Model. Then, for each Review Rating, enter the recommended percentage pay increase for each of the employee pay range values as follows:

Default

In the Default column, select a single review rating that you want the system to use as a default pay increase guideline, if an employee (or simulated employee) has no review rating.

Below Min % (below minimum percentage)

This is the lowest allowable increase for an employee, if the employee's current base compensation is below their salary grade minimum.

Below Max % (below maximum percentage)

This is the highest allowable increase for an employee, if the employee's current base compensation is below their salary grade minimum. Together with the Below Min % figure, this provides an allowable salary increase range for the employee.

1st Qt Min % (first quartile minimum percentage)

This is the lowest allowable increase for an employee, if the employee's current base compensation falls within the first quartile of their salary grade range.

1st Qt Max % (first quartile maximum percentage)

This is the highest allowable increase for an employee, if the employee's current base compensation falls within the first quartile of their salary grade range. Together with the 1st Qt Min % figure, this provides an allowable salary increase range for the employee.

2nd Qt Min % (second quartile minimum percentage)

This is the lowest allowable increase for an employee, if the employee's current base compensation falls within the second quartile of their salary grade range.

2nd Qt Max % (second quartile maximum percentage)

This is the highest allowable increase for an employee, if the employee's current base compensation falls within the second quartile of their salary grade range. Together with the 2nd Qt Min % figure, this provides an allowable salary increase range for the employee.

3rd Qt Min % (third quartile minimum percentage)

This is the lowest allowable increase for an employee, if the employee's current base compensation falls within the third quartile of their salary grade range.

3rd Qt Max % (third quartile maximum percentage)

This is the highest allowable increase for an employee, if the employee's current base compensation falls within the third quartile of their salary grade range. Together with the 3rd Qt Min % figure, this provides an allowable salary increase range for the employee.

4th Qt Min % (fourth quartile minimum percentage)

This is the lowest allowable increase for an employee, if the employee's current base compensation falls within the fourth quartile of their salary grade range.

4th Qt Max % (fourth quartile maximum percentage)

This is the highest allowable increase for an employee, if the employee's current base compensation falls within the fourth quartile of their salary grade range. Together with the 4th Qt Min % figure, this provides an allowable salary increase range for the employee.

When you run the Compensation Planning and Simulation process (WA_CPS) to generate a compensation scenario, the system looks at an employees review rating, and determines where their current grade and pay fits on this matrix. The system then uses the averaged percentage increase recommendations to calculate the simulated percentage pay increase for the employee.

When you enter the recommended pay increase percentages into the merit matrix, take into account your organization's pay strategy, or the pay strategy that you want to model in a scenario. You may want to create multiple merit matrices to test the costs and benefits of changing your pay strategy. For example, you might create one merit matrix that provides higher pay increase percentages for employees who are at the low end of their salary ranges, but keeps pay increases at a minimum for employees who are currently at the top of their salary range. Or you may want to create a merit matrix that rewards high performers with higher recommended pay increases, and provides poor performers with lower recommended pay increases.

Payout Rule Page

Use the Payout Rule page (WA_CP_PYOUT_DFN) to establish the amount rules for how to pay out compensation based on a flat amount, percentage of base pay, or criteria in a data element.

Navigation

select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Payout Rules, then select Payout Rule

Image: Payout Rule page

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

Compensation Type

Select a Compensation Type for the payout rule. Valid values are Currency Amount and Unit of Measure. A separate set of fields appear for each compensation type you select.

Defining Currency Amount Compensation

Amount Type

Select an amount type for the currency compensation.

Valid values areEmployee Expense, Employee Val and Employer Exp(employee value and employer expense), Employee Value, and Employer Expense.

For example, in the case of a benefit plan such as an Employee Stock Purchase Plan (ESPP), the cost to the employer might be zero, but the value to the employee might be large.

Payout Type

Select the type of payout you want to associate with the compensation.

Valid values are Data Element, Flat Amount, and Percent of Base Pay. The subsequent fields change depending on which of these values you select.

This field is only available when you select the Currency Amount compensation type.

Annualize?

Select this check box to annualize the calculated payout amount

This field is only available when you select the Percent of Base Pay payout type.

% of Base Pay (Percent of Base Pay)

Define the pay out rule using the % of Base Pay (percentage of base pay) field, basing the pay out rule on a percentage of an employee's base pay.

This field is only available when you select the Percent of Base Pay payout type.

Data Element ID

Define the pay out rule using a data element that you have created on the Data Element page, by selecting a Data Element ID from the prompt list values, which are from the WA_CP_ELEM_VW table. You also have the option of specifying the payout be based on a percentage of the data element.

This field is only available when you select the Data Element payout type.

% of Data Element (Percent of Data Element)

Define the pay out rule using the % of Data Element (percentage of data element) field, basing the pay out rule on a percentage of a specific data element you have already defined on the Data Element page.

This field is only available when you select the Data Element payout type.

Amount

Enter a value for the pay out rule when you want a flat monetary amount.

This field is only available when you select the Flat Amount payout type.

Defining Unit of Measure Compensation

You can also base the payout type on a Unit of Measure. Valid values include: Days, Dollars, Each, Man Hours, Number, Percent, Seconds, Square Feet, Stock Units, Time, and Units. If this is the case, then enter the Units and Value Per Unit.

Base Pay Compensation Rule Page

Use the Base Pay Compensation Rule page (WA_CP_BASE_PAY) to create a base pay compensation rule.

Navigation

select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Base Pay Rules, then select Base Pay Compensation Rule

Image: Base Pay Compensation Rule page

This example illustrates the fields and controls on the Base Pay Compensation Rule page. You can find definitions for the fields and controls later on this page.

Your next step is to use the setup data you have entered to define compensation rules. Building compensation rules is a little like creating a compensation plan. Except, rather than just specifying the compensation types that go into a compensation plan, you define rules for calculating the predicted pay out for a population of employees who participate in the compensation plan. You define rules for base pay, variable pay, and other pay (for example benefits), either individually or in any given mix that you specify.

Action and Reason Code

Enter an Action and Reason Code for the base compensation rule. The purpose of this step is to make the base compensation rules actionable by associating them with personnel actions.

Entering a Rule Type

Enter a Rule Type by selecting from the list of translate table values:

Amount Increase

Select this option if your scenario involves an amount increase to an employee's base pay. Use Amount to enter the increase.

Equity Increase

Select this option if your scenario involves an equity increase to an employee's base pay. Equity increases are pay increases granted to bring an employee's pay up to some internally specified standard. Select the type of equity in the Equity group box.

For example, you might want to bring the base pay of all your software developers up to at least the market rate midpoint. To do this, grant an equity increase to those developers whose current pay is below that level.

Merit Matrix Increase

Select this option if your scenario involves a merit increase to an employee's base pay. A merit increase is calculated using a merit matrix created on the Merit Matrix page. Select a Merit Matrix Code from the prompt list values, which are from the WA_CP_MERIT_DFN table.

The system uses the amount rules defined in the merit matrix, and an employee's salary review ratings, to determine the level of merit increase to grant the employee.

Percentage Increase

Select this option if you want to grant a pay increase to an employee or group based upon a percentage of their current base pay. Enter the desired increase percentage in Percent of Base Pay field.

Step Progression

Select this option if you want to grant a step progression increase to an employee or group, as long as their salary plan includes steps within grades. When you select this option, the system advances each affected employee one step up their pay scale.

Specifying the Equity Type

For a Rule Type of Equity Increase, specify the type of equity in the Equity group box from the following options:

Internal Pay Structure

This option gives you the ability to define an equity increase based upon an employee's salary Range Penetration. Range Penetration is the degree to which an employee's actual pay has progressed through their salary grade, and is usually expressed as a percentage.

For example, if you enter a value of 20% in the field, the system will not grant an equity increase to any employee in the affected group whose salary has already penetrated to this level. For any employee whose degree of range penetration is below this level, the system grants them an equity increase equal to the monetary amount needed to bring them up to this range penetration level.

The calculation is: Range penetration = (Employee Base Pay Range Minimum/(Range Maximum Range Minimum)

For example: If an employee's pay is 70,000 in a pay range with a minimum and maximum of 40,000 and 80,000, then the calculation is (70,000/ 40,000) / (80,000 / 40,000) = 30/40 = 75% range penetration.

Market Rate

Select this option if you want the equity increase to be based upon the market rate values for the employee's job code and salary grade. Select the Measure ID (the percentile of the market rate) that you want to use as the control point.

In this case, for any employee whose current salary is at or above this level, the system grants them no equity increase. For any employee below this level, the system grants them an equity increase equal to the monetary amount needed to bring them up to this level.

Variable Pay Rule Page

Use the Variable Pay Rule page (WA_CP_VC_PAY) to create a variable pay compensation rule, for bonuses for example.

Navigation

select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Variable Pay Rules, then select Variable Pay Rule

Image: Variable Pay Rule page

This example illustrates the fields and controls on the Variable Pay Rule page. You can find definitions for the fields and controls later on this page.

Using this Page

To complete this page follow these three basic steps:

Specify the Compensation Code, Compensation Type, and VC Plan ID (variable compensation plan identification code).
Specify the compensation distribution Plan Type.
Define the compensation rules in one of the three plan type group boxes.

Identifying the Variable Compensation Code and Type

Compensation Code

Select the Compensation Code for the variable compensation for which you are defining a rule. This may be any compensation code except regular base pay (600). Prompt list values are from the WA_COMP_TREE_VW table.

Compensation Type.

Select a Compensation Type. Valid values are Currency Amount and Unit of Measure.

Earnings Code

Select an earnings code (such as Holiday or Bonus) for the variable compensation for which you are defining a rule.

VC Plan ID

Associate the variable compensation rule with a VC Plan ID (variable compensation plan identification) from HRMS.

Identifying the Compensation Distribution Plan Type

Enter a compensation distribution Plan Type by selecting from the list of Translate values.

Discretionary Plan

This plan type provides managers ultimate discretion over a pool of money, which is either funded based on organization, group, or employee performance, or is budgeted. The discretionary award determination is sometimes guided by a predetermined percent of the participant's salary, expressed as an opportunity. This figure can then be modified based upon management's perception of actual value created by the group or employee. For example, each participant in an annual bonus plan may have the opportunity to earn 10 percent of base salary, but that amount may be changed based on manager discretion. Some employees may receive less than 10 percent, others may receive more.

Formula Plan

This compensation distribution plan type is based on a payout rule. The payout rule can be based on a flat amount, a percentage, or a data element. Whereas a target plan distributes payout based on a comparison of a performance measure against a target, in a formula plan the payout is based just on the payout rule.

Target Plan

With this distribution plan type the level of award is linked directly to a predetermined level of performance. For example, a target plan for a group might be as follows: A group, increase the business units, net income by 10% and each member of the group is eligible for an award equal to 5% of base pay.

Specifying Discretionary Plan Details

For a Plan Type of Discretionary Plan, select the Distribution Type from the list of translate table values: Business Unit, Department, Group, Job Code, and Location. You can choose to vary the distribution, or compensation pay out, to employees using any one of these dimensions. For any of these options select a Payout Rule ID from the list of prompt values, which are from the WA_CP_PYOUT_DFN table.

The discretionary plan takes the results of a payout rule, but distributes it based on the Distribution Type field. For example, if the Distribution Type is Department, the payout is distributed as a fraction of how many employees belong to a particular department. That is, if person X belongs in a department of 10 people and the payout to be distributed is 1000 units, each employee in that department receives 100 units as a pay out.

Specifying Formula Plan Details

The formula plan calculation process takes the results of a payout rule and distributes it to each employee in a workforce group who has that compensation rule assigned to it, without prorating or otherwise diluting the payout.

Select a Payout Rule ID for the formula plan from the list of prompt values, which are from the WA_CP_PYOUT_DFN table.

Specifying Target Plan Details

For a Plan Type of Target Plan, select the Data Element ID from the prompt list values, which are from the WA_CP_ELEM_VW table. The target plan applies a case or evaluation method for determining what payout is paid to an employee. The level of award for an employee is linked directly to a predetermined level of performance.

Note: Remember, if you are using a goals matrix with a target plan, you create a goals matrix on the Goals Matrix page. Then you tie the goals matrix to a data element on the Data Element page. The data element that you select using this page is the one that references the goals matrix you want to use with this target plan.

In the Compare Type field specify whether you want the first Data Element compared against a Static Value or against another Data Element. If you select Static Value, then complete the following fields:

Load Sequence

Enter a number to indicate the sequence in which you want the rules processed. To enter multiple rules insert additional data rows.

Operator

Select an arithmetic operand from the list of values. Valid values include Less Than, Less Than or Equal To, Not Equal To, Equal To, Greater Than, and Greater Than or Equal To.

Value

Enter the comparison value as a numeric value.

Payout ID

Indicate the Payout Rule ID you want to associate this condition with. Prompt list values are from the WA_CP_PYOUT_DFN table.

If you select Data Element, then complete the following fields:

Load Sequence

Enter a number to indicate the sequence in which you want the rules processed. To enter multiple rules insert additional data rows.

Operator

Select an arithmetic operand from the list values. Valid values include Less Than, Less Than or Equal To, Not Equal To, Equal To, Greater Than, and Greater Than or Equal To.

Data Element ID

Select a Data Element ID from the prompt list values, which are from the WA_CP_ELEM_VW table.

Payout ID

Indicate the Payout Rule ID you want to associate this condition with. Prompt list values are from the WA_CP_PYOUT_DFN table.

Other Pay Rule Page

Use the Other Pay Rule page (WA_CP_OTHER_PAY) to create other pay rules, for benefits for example.

Navigation

select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Other Pay Rules, then select Other Pay Rule

This page is essentially the same as the Variable Pay Rule page, with the following exceptions:

It does not have the variable compensation plan ID field.
Its intended use is for benefits-related compensation, so instead of earning code field it has a benefit plan field

Setting Up Frequency Details for Compensation Models

You use Frequency ID Codes on the Compensation Model page. You set up these codes on the EPM Foundation, EPM Setup, Common Definitions, Calendars, Frequency and Frequency Details pages. You can also access the Frequency Details page directly from the Workforce Analytics, Compensation Strategy menu, enabling you to review the frequency IDs in the system. These pages are documented in the Enterprise Performance Management Fundamentals

Setting Up Workforce Groups for Compensation Models

You use workforce groups on the Compensation Model page. You set up workforce groups using the Workforce Analytics, Workforce Analytics Setup, Workforce Groups component. These pages are documented in the PeopleSoft Workforce Analytic Applications

Setting Up Model IDs for Compensation Models

Before you use the Compensation Model page, you must set up a model ID on the EPM Foundation, Business Metadata, Business Framework, Models page. This page is documented in the Enterprise Performance Management Fundamentals

Compensation Model Page

Use the Compensation Model page (WA_CP_MODEL_DFN) to set up a model to bring together the workforce groups and compensation rules needed to run a scenario.

Navigation

select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Setup Compensation Model, then select Compensation Model

Image: Compensation Model page

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

Understanding the Purpose of this Page

The purpose of this page is to tie together the SetID, model ID, workforce groups, compensation rules, and calculation frequencies needed to use the model in a scenario. The model definition tells the Compensation Planning and Simulation process (WA_CPS) what compensation data to calculate for what group of employees, and on what frequency.

Two Methods for Beginning the Model Definition

You have option of cloning your model and rules from an existing one. To do this select a model ID in the Clone Model ID field. Prompt values are from the WA_CP_MODL_TBL table. If you choose to do this, edit the model setup and rules to create your new model.

You also have the option of creating your new model manually. To do this bypass the Clone Model ID field and proceed to complete the fields on the remainder of the page.

In the Group ID field, select the overall workforce group which encompasses all of the workers you want to include in the model. Prompt values are from the WA_CP_GROUP_DFN table.

Select the Include Current Pay check box if you want the system to automatically include employees' current base salary in their compensation calculations. This is useful when you want to model the total compensation impact of compensation changes. Leave it cleared if you want the system to omit current pay from the compensation calculations. This is useful when you want to model only the change in compensation.

Note: Always select the Include Current Pay option if you plan to use the data from a compensation analytic model in the Planning and Budgeting Position Budgeting feature.

Defining the Rule Sequence

Use the Rule Sequence group box to specify the sequence of groups and compensation rules you want to include in the model.

Sequence

When you specify multiple compensation rules for your compensation model, you must specify the sequence in which you want them processed. The system inserts default sequence numbers, but the field is editable, so you can change the sequence.

Group ID

Select a workforce group ID from the prompt list values, which are from the WA_CP_GROUP_DFN table. The workers in this group must be a subset of the overall group specified above, in the model definition.

Rule ID

Select a compensation rule ID from the prompt list values, which are from the WA_CP_RULE_VW3 table.

Frequency ID

Select a calculation frequency ID from the prompt list values, which are from the PF_FREQ_DTL table.

Workforce Group Info and Compensation Rule Info

Click the Workforce Group Info or Compensation Rule Info button to the right of the Group ID and Rule ID fields to access the Workforce Group Description and Compensation Rule Description pages, and view the descriptions of the groups or rules.

Setting Up Compensation Scenario IDs

Before you run the Compensation Planning and Simulation process in Compensation Strategy, you must have set up a scenario ID using the EPM Foundation, Business Metadata, Business Framework, Scenarios page. These pages are documented in the Enterprise Performance Management Fundamentals

Run Compensation Scenario - Run Jobstream Page

Use the Run Compensation Scenario - Run Jobstream page (RUN_PF_JOBSTREAM) to run the compensation planning and simulation process.

Navigation

select Workforce Analytics, then select Compensation Strategy, then select Setup Compensation Scenario, then select Run Compensation Scenario, then select Run Compensation Scenario - Run Jobstream

Image: Compensation Planning and Simulation - Run Jobstream page

This example illustrates the fields and controls on the Compensation Planning and Simulation - Run Jobstream page. You can find definitions for the fields and controls later on this page.

To generate a Compensation Planning scenario, you run a PeopleTools Application Engine (AE) process called Compensation Planning and Simulation (WA_CPS). The run control definition includes these basic elements:

Business unit
Scenario ID
Fiscal year and accounting period
Jobstream ID

Scenario ID: Running CPS as a Forecast versus Historical Process

The scenario ID you select using this page can be for either a Forecast or a Historical scenario.

The Retention Assignment and Workforce Simulation processes can serve as a basis for input to the CPS process, when it is run for Forecast scenarios. You can use constraints to integrate the results of the Retention Assignment engine into your compensation rules, or use the reduced employees in WA_GROUP_F00 as a workforce group. You can also use the Workforce Simulation process to generate a simulated workforce in WA_JOB_S00, consisting of your existing employees in a business unit, plus any new simulated employees and reduced employees (employees to be removed from your workforce). The CPS process can take the simulated workforce generated by the Workforce Simulation process, and use it as input for calculating compensation costs and values. CPS can simulate several varieties of base compensation rules, as well as an infinite number of changes to variable and benefits compensation rules.

If you run CPS as a Historical scenario the system uses the existing workforce from JOB_F00 to populate WA_JOB_S00. In this case you do not use inputs from either retention strategy or workforce simulation.

Jobstream ID

When you use the Run Jobstream run control you can access and run other jobstreams, but these are the basic jobstreams and engines delivered for Compensation Planning and Simulation:

Jobstream ID	Job ID	Application Engine ID
WA_CPS	WA_CPS, WA_CPS_MRG	WA_CPS

CPS Process

The CPS process performs calculations using the groups and rules that apply to the business unit, SetID, model ID and scenario ID defined on the run control, if the process is not already approved. The process performs calculations using the annual rate and annual amount base currency equivalent fields in the tables. The process does not convert rates and amounts back to hourly or monthly. For each job with changed compensation data, new rows of data are added to the WA_JOB_S00 table. Each row of data is associated with a personnel action of PAY and a reason of CPS.

The high-level sequence of tasks performed by the CPS process is as follows:

Resolves the model rules.
Prepares input from the WA_JOB_S00 table.
Flattens trees (for Job Code, Organization, and Compensation Code).
Calls the subprograms stored in the application libraries in the following order:

Group Builder (WA_GRPBUILD)

Resolves the constraints associated to the workforce group definition. After resolving the constraints, the data from the constraints (primarily employees) is copied over to the WA_GROUP_F00 temporary table so the CPS process can utilize it to process affected employees.

Base Pay Calculator (WA_BP_CALC)

Calculates the base pay for employees in a scenario based on the compensation rules specified in the model.

Data Element Resolver (WA_DATA_ELEM)

Resolves the data elements used in the scenario and resolves the accompanying data in the WA_DATAEE_F00 temporary table. The data elements resolved by this process can be used in the Variable Pay Calculator or the Payout Resolver processes.

Payout Resolver (WA_PAYOUT)

Determines all of the pay out possibilities for a given scenario. After the payouts are determined, the results of a payout are then accessed by the Variable Pay Calculation program to determine which pay out to use for the final results in the CPS process.

Variable Pay Calculator (WA_VP_CALC)

Is similar to the Base Pay Calculator, however, it differs in that it uses the results from the last three sub-programs to calculate the variable compensation to pay out to the employee.

CPS Process Output Tables

When you run CPS, the process populates these final output tables:

Table	Purpose
WA_CALC_F00	Stores all final calculation results of the CPS process. This includes the appropriate costs or value per employee based on the rules specified in the scenario. The system only performs calculations for, and updates, the annual rate and annual amount base currency equivalent fields in the table. The system does not convert rates and amounts back to hourly or monthly. If part of the scenario process run includes a workforce simulation where simulated employees are added to the workforce, the new employees are assigned a currency code (in WA_JOB_S00) that is the same as the existing employees for that same scenario.
WA_JOB_S00	A clone of JOB_F00 with the addition of PF_SCENARIO_ID in it. For each job with changed base compensation data, new rows of data are added to the table. Each row of data is associated with a personnel action of PAY and a reason of CPS.
WA_GROUP_F00	Contains the list of employees in a workforce group specified in the scenario. WA_GROUP_F00 is populated by both WFS and CPS. If a reduction rule is specified in the scenario, the WA_GROUP_F00 table is populated with the employees that are to be reduced from the workforce during the WFS run. A reduction rule points to a workforce group to be reduced, this forces the WFS process to call the Group Builder process to run and create the group in WA_GROUP_F00.
WA_DATAEE_F00	Contains the resolved values for all data elements specified in the scenario. The table is populated by the WA_DATA_ELEM AE library that is called by CPS.
WA_JOBPAY_F00	Contains base pay compensation data for employees in the scenario calculations. Provides you the ability to direct the CPS process to either include or exclude current base pay from the process calculations.

Loading the Analytic Model

After the CPS Process generates your scenario, it automatically calls the Load Analytic Model (WA_CP_BAM_LD) application engine to generate an analytic model instance with the same ID as the scenario ID. Hence, you need not run the process from the Load Compensation ACE Model page. You can still manually load an analytic model using the page, should you wish to reload the model or to load the scenario results into multiple analytic models.

Immediately after the Load Analytic Model application engine process completes, you can review the scenario results in the ACE model.