Understanding Wage Progression and Administer Compensation
Automatic step progression is a standard practice in the manufacturing industry and retail industry of providing new workers with increases based on the passage of time or actual time worked. The definition of actual time worked will vary by bargaining agreement. The formulas used for calculating increases also differ by agreement.
The wage progression feature provides the ability to define a wage progression rule that captures the advancement criteria and step calculations. You can then generate the step details reflecting a grade pay range. Batch processes gather and analyze worker data to determine when a worker is ready for advancement and will insert the appropriate Job and Compensation rows reflecting the new step and pay rate.
In order to use the wage progression feature, you must:
Use HR as your core system of record for worker information.
The worker must be assigned a bargaining unit, labor agreement, and a salary plan that includes a wage progression rule.
Select Multi-Step Grade option on the Installation Table - HCM Options page
Determine if your wage progression rules require time worked data.
If yes and if you use PeopleSoft Payroll for North America, then associate special accumulators with all the appropriate earnings codes. Earning codes in the accumulators must be defined to match the wage progression rule's time requirements. You could alternatively create integrations to provide time data from other systems or enter the time manually on the Review Wage Progression page.