Administering Compensation with Salary Plan Defaults
This section provides overviews on assigning default salary plans, grades, and steps to a worker, tying salary plans to job codes, locations, or labor agreements, and associating salary plans and grades to military ranks.
To load the data into tables use the LOCATION_TABLE and CI_JOB_CODE_TBL component interfaces.
You specify a worker's salary administration plan, grade, and step on the Job Data - Salary Plan page. When you hire or transfer a worker, the system enters default values in these fields. You can assign default salary plans, grades, and steps to a worker in one or a combination of the following ways:
Associate the salary plan with a location on the Location Profile page.
Associate the salary plan with a job code on the Job Code Table - Default Compensation page.
Associate a salary plan with a labor agreement on the Salary Plan Grades page.
Assign a salary plan directly to a worker on the Job Data - Salary Plan page.
Associate a salary plan with a military rank in the Military Service table, Grades Associated with Ranks page.
Whether you tie salary plans to locations, job codes, rank, or a combination of these, the system ultimately enters default compensation information on the worker's compensation record, where you can change it. The system verifies that any combinations of salary administration plans and grades that you select are valid and exist in the system. If the combination does not exist, the system issues a warning message.
Note: If you want the system to automatically enter step component rates in the job data, select Multi-Step Grade on the Installation Table - HCM Options page.
The system uses the salary grade and step from the Job Code table. It uses the salary plan ID to determine the compensation data that is associated with the grade and step. The salary plan ID can be tied to the job code, location, or labor agreement.
To set up a salary structure reflecting location differences, tie salary plans to locations in the Location table. The salary plan that is associated with the location overrides the salary plan that is tied to the job code. When you select a location for a worker in the Job Data pages, the system enters the salary plan ID from the Location table.
If location differences don't matter, enter a salary plan ID only in the Job Code table. When you select a job code for a worker in the Job Data pages, the system enters the salary plan from the Job Code table.
To set up a salary structure reflecting compensation differences reflecting wage agreements, associate the salary plan to the labor agreement on the Job Data - Salary Plan page.
Military organizations use the salary plan and grade tables to set up the general salary plans and grades that fit the pay attributes of specific rank codes. Once these salary structures are created, users must access the Military Service table to create ranks and associate salary plans and grades to each rank.