Defining Compensation Cycles

Enter the beginning and ending dates of the funding cycle. The Funding Period Begin date must be greater than the Funding Period End date. Typically funding periods are a year in length.

Enter a description for the funding period.

These fields display the status of the cycle, the date that the cycle was last updated, and the user ID of the person who last updated the cycle.

Select the group that defines the population of employees for which the cycle applies.

If the tree name is based on a setID (for example department, location, and so on) select one using the Lookup button. If the tree is not based on a setID, this field is not required.

Select the tree that is used as the basis for structuring the organizational hierarchy within the Manager Self-Service component.

Select the effective date of the tree you selected in the Tree Name field.

Select one of the values from the drop-down list menu to indicate the hierarchy that you want the cycle to be based on. Values include:

• Position Incumbent (Rpts To) (reports to)

• Department Position Nbr

• Manager ID

• Supervisor ID

• None

Enter a description for the tree node associated with the compensation cycle.

Select the currency code that you want to use from the currency code table.

Enter the date that you want the system to convert the currency that you are using for this cycle. The underlying market rate tables must be fixed from the point that compensation is calculated within the cycle.

Select the rate type that you want to use for the cycle.

Select a value from the Rate Index table to indicate the index you want the system to use to calculate the conversion of the currency.

If you are integrating information from eCompensation Manager Desktop with a Performance application, select the appropriate application: Values include:

• PeopleSoft ePerformance

• Other

• None

Enter the date range for performance documents.

Select the appropriate performance document type.

Select the use rating that you are using in your ePerformance application.

Select to indicate that salary and award update transactions need to be published, rather than updated directly in employees’ job and award data within the newer HCM environment.

When selected, update transactions are loaded into a staging table and are published to the older HCM environment by running a process. From within the older system, another process runs to update employees’ job and award data information. Updates in the older system trigger sync transactions to the newer system and keep the two in sync.

Enter the date when you want any proposed compensation changes to be effective. This date must be on or after the Funding Period Begin Date.

Enter the date when new hires are eligible for compensation changes. This date must be before the Funding Period Begin Date.

The system is designed to allow customers to filter out employees that have not worked for a minimum period of time prior to the funding period to be considered eligible. For example, you might have a business policy that employees must be employed for at least 6 months to be considered eligible for any form of an increase.

Select the type or types of employee job change you want the system to track after the snapshot process has run and the cycle is in the Open status.

Available values are:

Active to Inactive Status - HR status of employee is changed to inactive, for example, employee is terminated.

Currency Code - employee’s salary currency code is changed.

Salary - employee’s salary is changed.

Select this option for a job change type if you want the Job Change process to zero out funded and proposed amounts for employees who had that job change recorded during the open cycle.

If this option is not selected, the Job Change process doesn’t do anything to the funded and proposed amounts for employees who had that job change during the open cycle. The manager, after receiving the alert, can then decide what to do with the amounts, for example, reallocate them to other direct reports.

Select the rate code that you want to use for changes to compensation. The system automatically fills in the description after you select the rate code.

Enter a description for the salary plan that you want managers to see on the Manager Self-Service pages.

Enter a number to indicate the order in which you want the system to display salary plans within the self service pages for the compensation cycle.

Select the rounding method that you want to use for the salary plan.

Select this check box if you plan to use a configurable matrix to calculate funding information. If you select this check box, the system makes the Funding Percent, Minimum Percent, and Maximum Percent fields unavailable for entry.

Select a configurable matrix that you want to use to drive the funding calculation.

Only matrices of the BASECOMP type are available for selection.

See Defining Salary Increase Guidelines Using a Configurable Matrix.

Enter the total funding percent by which you would allow a manager to adjust salaries in their department.

Enter the minimum percent by which you would allow a manager to adjust an employee's salary.

Enter the maximum percent by which you would allow a manager to adjust an employee's salary.

Select this check box if you want to enable managers to override the calculated funding amount.

Select this check box to set the default proposal to the calculated funded amount.

Select this check box if you want to use information from the Prorate Exception (WCS_PRO_EXC_TBL) table in the build process. If there is no entry in the Prorate Exception Table, the build process sets the prorate factor to 1.

Select the proration rule that you want to use for salary increases or adjustments. The values that you are able to select come from the Prorate ID table (WCS_PRORATE_ID).

Enter the begin and end dates to which the proration period applies. These fields are required if you specify a proration rule. Typically, this period is for the year prior to the funding period.

See Understanding Proration Calculation Rules.

Enter a number to control the order that you want the system to load the action reason for the plan when updates are run.

Select an action from the Action table.

Select a reason from the Action Reason table.

Enter a description for the action that you want managers to see when they access the Manager Self-Service page.

Select the action that you want to use as a default on the Manager Self-Service page. You must select only one action for the plan.

Select a plan from the Variable Compensation Plan table.

Select a payout period from the Variable Compensation Payout Period table.

Select an award type. Values include:

• Cash

• Non-Cash

• Stock

The system derives these default values from the variable compensation plan types:

• Cash: Discretionary (D), Goal Sharing (G) or Profit Sharing (P).

• Stock: ISO (I), NSAR (K), NQ (Q), RSA (R) or ISAR (S).

• Non-Cash: Non-Monetary (N) or Other (O).

Enter a description for the award plan that you want managers to see on the Manager Self Service page.

Select the type of funding calculation that you want the system to use for the variable compensation plan. Values are VC Calc and Manual.

Select this check box if you want to enable managers to override the calculated funding amount. If you selected Manual as the Funding Calculation method for the VC plan, you must select this check box.

Select this check box if you want the system to default the plan to the proposed amount to the calculated variable compensation amount or the manually funded amount for each employee. If you do not select this check box, the system displays 0.00 as the proposed amount.

Select the rounding rule that you want the system to use to calculate award amounts. If you do not specify a rounding rule, the system sets all rounding of the funded and proposed amounts to 2 decimals.

Select to enable currency conversion on the Manager Self-Service Direct Reports Detail page.

Select to enable updates to information for indirect reports on the Manager Self-Service Direct Reports Detail page.

When this check box is selected, the system provides updates to employee information that is one level down from the node to which the manager has Submitter role access.

Select to display award history on the Manager Self-Service Direct Reports Detail page.

Select to enable the notepad on the Manager Self-Service Direct Reports Detail page. The notepad is used primarily for manager comments.

Select to enable a manager to delegate their compensation role responsibilities to another manager or employee.

Select to process compensation proposal approvals using the Approval Framework.

If this option is enabled, approvers approve, deny, or push back compensation proposals on the Approve Compensation Proposals page (WCS_ECM_AWE_HOME). Approval transactions are created and handled by the Approval Framework. When a proposal is approved or denied, only the group node status is updated to CNF for Confirmed or PSB for Pushed Back, and notifications will be sent out by the approvals workflow engine for the proposal. When this form of approval is used, an approver’s approval action is independent of all other transactions. The action does not cascade down to other lower-level proposals.

With this option, the Confirmer role is not available in the Access Type drop down list box on the Administer Cycle Roles page.

If this option is not enabled, confirmers approve, deny or push back proposals by clicking the Confirm or Push Back buttons on the Allocate Compensation page. PeopleCode is triggered to update the group node status and generate a compensation alert that can be viewed on Manager Dashboard (if configured). When this form of approval is used, a Confirmer role is typically assigned to a high-level user (for example, a department head) because the system cascades the confirmer’s approval action of a transaction down to all its lower-level compensation proposals.

Select the process ID and definition ID that you want to use to generate approval workflow. These IDs are entered on the Setup Process Definitions page (select Set Up HCM, Common Definitions, Approvals, Approvals Setup Center, Setup Process Definitions).

See Setting Up Approval Process Definitions.

Select the type of grid that you want the system to display on the Manager Self-Service page. The system displays the fields associated with the grid you selected. Values include:

• Awards Grid

• Salary Grid

• Worker Detail

Displays the name of the field associated with the grid you selected.

Select the check boxes associated with the fields that you want to appear within the information grid on the Manager Self-Service - Direct Reports Detail page.

Select the text that you want to appear for the field on the Manager Self-Service pages. The system displays the description to the right of the Discretionary field. If you populate the Discretionary field, the system overrides the Manager Self-Service component with the field label from the corresponding value found in the text catalog.

See Configuring the Text Catalog.