Understanding the Base Compensation Budgeting and Planning Business Process

The following list briefly outlines the steps in the base compensation budgeting and planning process. You can calculate budget values with or without using the request budget functionality.

To calculate base compensation budgets:

  1. Create a group using group build pages.

    See Understanding Group Build.

  2. Set up base compensation and budgeting control tables.

  3. Create a budget in the Create/Approve Budget component and select the budget type or action reason.

  4. Load rate codes and select one of these methods for calculation:

    • Matrix

    • Amount

    • Percent

    • Points

    • Percent of Points

    • Add Percent

  5. Calculate the new budget and view the results.

  6. (Optional) Compare proposed budgets and make adjustments.

  7. (Optional) Request approval from approving manager via workflow.

  8. Approve a budget or go directly to the Assign Group Increases component without approving the budget first.

  9. Establish a salary increase plan for workers in the group based on the budget.

  10. Manually adjust increases for individual workers in the group.

  11. Compare salary plan figures with budget figures.

  12. Finalize and approve the salary increase plan.

  13. Populate worker records with planned, approved increases.

Field or Control

Definition
Salary Increase Budget

A budget for increasing base compensation rates for specified pay components. The budget is defined by worker group and calculates increases equally for all group members who have the budgeted rate codes in their compensation packages.
Salary Increase Plan

A plan for manually increasing the salaries of individual workers in a group.
Requested

The base salary increase budget as it is defined and submitted for approval on the Create/Approve Group Budget pages.
Current

The system uses the current salary increase budget for variance calculations in Group Budgets.