Base Compensation and Budgeting Business Processes
Base Compensation and Budgeting supports these business processes.
Using the Base Compensation and Budgeting business process, you can create salary administration plans to assign default compensation packages to workers at the location, job code, or worker level. Use these salary plans to move workers through step increases manually or automatically.
To set up and administer salary administration plans:
Set up salary plans, grades, and steps.
Tie the salary plans, grades, and steps to locations or job codes for defaulting into positions and worker compensation packages.
(Optional) Enter salary raises using the Automated Step Increase process.
View salary structures and generate reports.
You can create base compensation budgets for groups of workers by defining increases for pay components. The system calculates the increase for all workers in the group who have the component in their compensation package. You can define budget increases by effective date, effective sequence, action, and action reason and compare multiple proposed budgets for a given group and budget period.
Create your salary increase plan by applying the budgeted increases to workers in the group. Manually adjust individual worker's raises based on compensation history and review results. Check the variance between the budget totals and the salary plan totals, approve the raises when you're satisfied, and load them to the workers' Job Data records where they take effect on the effective date of the budget or the worker's anniversary date, depending upon how you defined the budget.
To budget and plan salary increases:
Create a salary increase group.
Set up defaults and controls for salary increase budgets and plans.
Create requested budgets, compare budgets, and optionally approve a budget.
Create a salary increase plan by applying budgeted increases to worker compensation and manually adjusting individual increases.
Approve the salary increase budget and plan.
Populate worker records with the approved increases.
Note: Information from the worker's salary administration plan, such as compa-ratio, job ratio and position in grade, is available for your review while adjusting salary increases for workers in the group. Similarly, each worker's current review result is also available to help you adjust individual raises.
In the Base Compensation and Budgeting Process menu, you'll find the following two processes to implement salary mass updates:
Update by Salary Plan and Pay Group.
Update by Job Code.
In addition to these processes, you can use PeopleTools mass change functionality and templates to update salary data.
Base Compensation and Budgeting inquiry pages and reports provide the following types of summary information:
Salary plan and grade structures.
Worker compensation history and summaries by worker, group, company, and department.
Worker review summaries and distribution analysis.