Compensation Cycles

A compensation cycle defines the compensation activity and associated time period. The cycle ID and funding period are used as key fields throughout the process to identify unique cycles.

This topic discusses:

Administering the Compensation process.
Cycle statuses.
Group statuses.
Proposal statuses.

The administrative functions within eCompensation Manager Desktop's enable you to establish plans, define processes, and manage the compensation process for your organization. These functions encompass the activities that a compensation administrator would need to complete to configure the self-service component that managers use to review and enter compensation information.

Compensation administrators use these functions to configure the eCompensation Manager Desktop application:

Compensation Cycle Definition

Use the pages within this component to define your compensation cycles and associated provisions for both salary and award processing. Here are the types of parameters that comprise a compensation cycle definition:
- What group of employees will be processed?
- What tree hierarchy will be used to group employees for processing and approvals?
- Will performance ratings be integrated into the Compensation Cycle process?
- What Salary Plan rules will be used for calculating funding and processing salary increases?
  
  – Will a configurable matrix be used to derive the funding percentage?
  
  – What rounding rules will be in effect?
  
  – What proration rules will be in effect?
- What Variable Compensation rules will be used for calculating funding and processing bonuses and awards?
  – Will funding be defaulted from Variable Compensation or manually funded?
  
  – What rounding rules will be in effect?
- What specific fields of information need to be displayed on the Manager Self-Service pages?
- What type of approval process will be used?
Cycle Administration
Use the pages within this component to manage the major events during a compensation cycle. This component provides the event steps and prompts for the activities that need to be completed throughout the compensation cycle. You can also use this component to build your compensation cycles to prepare employees and calculate funding, open cycles to managers to enter proposals, load approved salary updates and awards, finalize compensation cycles, or cancel cycles to adjust the configuration and rebuild the cycles.
Cycle Role Management
The pages within this component enable the compensation administrator and designated administrators to update group node role access for the organization tree hierarchy defined for your compensation cycle. For each group node, an employee ID and employee record number can be assigned a specific access role (Submitter, Reviewer, Confirmer, and so on) that provides access to view, update, and approve salary and award proposals.
Plan Funding
Use the pages within these components to provide a summary of all cycle funding within each organizational group. Through this functionality you can view and update funding based on the provisions of the cycle definition and the processing status within the cycle. You can also manually distribute funding.
Transaction Management
Use the pages within this component to detail the calculated compensation proposals for organizational groups and funding basis. Compensation administrators may update proposals at either the group or individual level at any time after the cycle has been released for manager entry. This component also features group and individual view capabilities. At the individual level users can view compensation history.

The Cycle Status is used by the compensation administrator to evaluate where the cycle stands at any time during the process. This status is directly linked to the Compensation Administration component that is used to move the cycle through various steps and processes. This display fields communicate the status of the cycle and the person responsible for setting that status in motion.

During cycle definition (and prior to running the Cycle Build process) the status of the cycle equals Defined. The As of date and Last Processed By fields represent the last edit date and operator ID. As each activity is completed, the system updates the status accordingly.

Cycle Status	As of Date	Last Processed By
Defined	Last edit date of the Compensation Cycle definition.	Displays the ID of the last user to edit the cycle definition.
Canceled	Date of action.	Displays the ID of the user who executed the cancel cycle.
Build in Progress	Last run date for Cycle Build process.	Displays the ID of the last user who ran the Build/Calculation process while in the `Build In Process` status.
Built	Last run date for Cycle Build process.	Displays the ID of the last user who ran the Build/Calculation process to the `Complete` status.
Open	Date of action.	Displays the ID of the user who executed an approve funding action.
Finalized	Date of action.	Displays the ID of the user who executed the finalize cycle.

The Group Status is used to identify where each group (or reporting node) is within the compensation cycle. This is the primary status indicator used during manager self-service to track compensation proposals.

Group Status	As of Date
Calculated	Last run date of Cycle Build process.
In Progress	Date of action.
Submitted	Date of action.
Approved	Date of action.
Pushed Back Note: If you have implemented the AWE framework, the user is the AWE itself.	Date of action.
Ready to Load	Date of action.
Complete	Last run date of Load Salary and Award Update process.

The Proposal Status code is used to indicate whether the approved updates and awards have been loaded successfully for an individual within one or more of the plans with a Ready to Load group status. The system only updates the status from the Pending status following the Load Salary Updates and Awards process.

Proposal Status	As of Date
Pending	Last run date of Load Salary and Award Update process.
Load Error	Last run date of Load Salary and Award Update process.
Bypassed	Last run date of Load Salary and Award Update process.
Processed	Last run date of Load Salary and Award Update process.

Compensation Cycles

Administering the Compensation Process

Cycle Statuses

Group Statuses

Proposal Statuses