Setting Up Salary Plans, Grades, and Steps

Rating Model

Select a rating model to associate with the matrix. Rating models are defined on the Rating Model page.

See Understanding the Content Catalog.

Review Rating

Select from the list of ratings in the rating model associated with the rating scale that you selected.

Below Min (below minimum)

Enter the percentage increase of a worker's existing salary. The below minimum range is for those workers whose salaries are below the amount for the first quartile.

1st Quartile to 4th Quartile

For each quartile, enter the percentage increase of a worker's existing salary.

Standard Hours

Enter the standard hours for this salary plan. The system uses this value (and the value in Work Period) in frequency conversions for compensation rate codes that are defined with hourly frequency.

Wage Progression Plan

Select this check box if you want to associate a wage progression plan to this salary administration plan.

See Understanding Wage Progression and Administer Compensation.

Work Period

Enter the work period in which the standard hours should be completed.

Default Salary Matrix Code

If you use salary increase guidelines matrices to plan salary increases, select a code. The system enters this matrix code as the default for each grade in the salary plan.

You establish salary matrix codes in the Salary Increase Matrix table. If you have not defined a salary matrix, you can enter this information later.

Default Rating Model

Once you select a default salary matrix code, the system populates the Default Rating Model if you have linked it to the salary matrix code on the Salary Matrix Table. You cannot change it here if it is linked to the salary matrix code unless the system has been installed for Japan.

Company

Select to associate this plan with a particular company in your organization. This value is used in Salary Grade Tables to calculate the compensation rate for rate code type points (Salary Step Components). The Points value is defined by company. You create valid codes on the Comp Rate Code Table page.

Hourly, Daily, and Monthly

Select a Frequency ID for each field. The system uses the annualization factor of that Frequency ID when it calculates the daily, monthly, or annual rate for each component of pay that you assign to a salary step on the Salary Step Components page. The system stores the valid values in the Frequency table.

Auto Calculated Premium

Select if workers assigned to this salary plan are eligible for a salary premium above the amount calculated by the default component.

Absorbing Premium and Non-Absorbing Premium

Select an absorbing premium rate code if the salary premium should absorb an increase in the default salary amount from the component. For example, if a worker has an absorbing premium of 10,000 USD and their default salary increases by 2,000 USD, then the premium would reduce to 8,000 USD. Only rate codes that have the Default Without Override option selected are available as options for the absorbing rate code.

Select a non-absorbing premium rate code if the salary premium should remain unchanged by an increase in the default salary amount.

You can select one or both kinds of rate codes. You can determine how much of the premium each rate code will absorb for each worker on the Job Data - Compensation page.

URL Identifier

Enter the URL identifier of the salary planning document you want to attach to this salary plan.

File Name

Displays the file name.

Add

Click to add the file to this salary plan.

Added By and Date Added

Displays who added the file and on what date it was added.

Tariff and Tariff Area

Enter the tariff that is associated with this salary plan and then enter the tariff's area.

Next Scheduled Pay Adjustment

Select the date for the next scheduled adjustment.

Salary Plan Explanation

When you use salary plans to represent your job categories, use this field to enter explanatory information about the salary plan (which may represent the job category) that is additional to its description. This information enables you to add job category-related information when you use different salary plans for different job categories. You might, for example, enter information about the job types that make up this job category.

Additional Description

Enter information that will supplement the salary grade (ID) and description. For example, you might use the field to store an additional internal name for the grade, such as "Associate Managers" to supplement a simple description such as "Grade 4."

Salary Matrix Code

If you selected a default salary matrix code on the Define Salary Plan page, the system enters that code as the default. You can override the default.

Rating Model

If you selected a default salary matrix code on the Salary Plan Table setup page, the system displays the Rating Model that is tied to the salary matrix.

Currency Code

Displays the currency code that you selected for the Salary Administration Plan on the Salary Plan Table setup page. You can change the currency code.

Range Spread

The system calculates the range spread percentage by dividing the salary maximum amount by the minimum amount and then subtracting 1.0.

Minimum and Maximum

Enter the minimum and maximum salary in either the Annual, Monthly, Daily, or Hourly field row. Enter the range in one frequency; the system calculates the minimum and maximum in the other frequencies.

(USF) Bi-Weekly is also a frequency option.

Midpoint

The system calculates the midpoint as the maximum plus the minimum divided by 2. You can override this default.

Annual, Monthly, Daily, Hourly, and Bi-Weekly

Enter the annual, monthly, daily, hourly, or bi-weekly salary range, depending on how you quote the salary for this grade. If you leave the rows blank, the system calculates the values.

Salary Grade Explanation

Use this field to store information such as capability grade requirements and the corresponding supervisor level.

Increment Type

If you plan to run a process that automatically moves a worker to the next salary step, select from these values:

• (None): Select to use no increments or to deselect any values that were entered in error.

• Date Based: Select to move the worker into the next step based on the worker's entry date into this step. If you select this option, the Months to Next Step Increment field becomes visible.

• Either: Select to use Date Based and Hrs Based at the same time. If you select this option, the Spec Accum (special accumulator), Months to Next Step Increment, and Hours to Next Step Increment fields become visible.

• Hrs Based (hours based): Select for the worker's step increase to be based on a number of hours. If you select this option, the Spec Accum and Hours to Next Step Increment fields become visible.

• Manual: Select to manually enter increments.

• Wks Based (weeks based): This value is for U.S. federal government users only.

Generate Steps or Regenerate Steps

Click this button to calculate or recalculate the salary steps after you have changed the wage progression rules.

Wage Progression Rule

Click this link to access the Salary Plan Table2 page, where you can view wage progression rules associated with this salary grade.

Spec Accum (special accumulator)

If you selected an Increment Type of Either or Hrs Based, select a special accumulator. The system uses this accumulator to determine worker compensation.

See Setting Up Special Accumulators.

Step

If you are defining a new step or modifying a step, enter the step number.

Currency

Select a currency code for the step. The system enters the currency code that you entered in the Salary Grade table as the default value. You can change the currency code.

The system displays the compensation totals for the step on this page in the currency that you specify here.

Months to Next Step Increment

If you select an Increment Type of Date Based or Either, enter the number of months that the worker must remain in this step before being eligible for the next step increment.

Hours to Next Step Increment

If you select an Increment Type of Either or Hrs Based, enter the number of hours that the worker must accumulate in this step before being eligible for the next step increment.

Rate Code

Select a rate code that you want to associate with this salary step. The valid values in the list are the base pay components that you defined on the Comp Rate Code table page.

The system automatically populates certain fields in the grid based on how you defined the rate code in the Compensation Rate Code table.

Seq (sequence)

The system displays 0 as the default Seq number. To avoid duplicate keys for data rows, enter 1 or higher if you associate the same rate code with the same step more than once.

Use the same rate code more than once to give the same rate code different compensation rates for the same step. This is useful for job splitting.

Details

Click this button to view details of the selected rate code and rate matrix, if applicable.

Comp Rate (compensation rate)

The system displays the default compensation rate that you defined for the rate code on the Comp Rate Code Table page. If the rate code type is Flat Amount, Hourly Rate, or Hourly Rate + Flat Amount, enter a compensation rate for the rate code in this salary step.

Currency

The system enters the default currency code that you defined for the rate code on the Comp Rate Code Table page. You can change the rate code's currency code for this salary step.

Frequency

The system enters the default Frequency ID that you defined for the rate code on the Comp Rate Code Table page. You can override that frequency here.

Percent

If the rate code type for this rate code is Percent, enter a percent for the rate code in this salary step.

Rate Code Group

If you selected the Use Rate Code Groups check box on the Installation Table - HCM Options page, you can apply the rate code percent to a rate code group. To do so, select a rate code group from the list of valid values. You define rate code groups on the Rate Code Groups page.

This field is hidden if you did not select Rate Code Groups in the Installation table.

Points

If the rate code type for this rate code is Points, assign points to the rate code for this salary step. Set up the value of each point at the company level on the Company - Default Settings page.

This field is hidden if you did not select the Salary Points check box on the Installation Table - HCM Options page.

Hourly Rate, Daily Rate, Monthly Rate, and Annual Rate

The system displays these total values of all the rate codes of the salary step.

Job Classification

Select the DETYA job classification.

Minimum Classification and Maximum Classification

For Australian Public Service, select the minimum and maximum classifications for this salary step.

Minimum Required Years

Enter the number of years workers must be in this grade before they can advance from it. This value is the minimum number of years required in the grade.

Maximum Years

Enter the maximum number of years workers can be in this grade. When checking for workers eligible for advancement from this grade, the system automatically includes those who have been in the grade this number of years, irrespective of all other criteria.

Minimum Age

Enter the minimum age workers must be to be eligible to advance from this grade.

Number of Reviews

Enter the number of reviews the results of which the system will use to assess a worker's eligibility to advance from this grade. If you enter 3, for example, the system will count the results from the most recent review, the review before that, and the review before that. Only reviews that have the Include in Grade Advance check box selected on the Review Definition Table JPN page are included in this process.

Required Eligibility Points

This is the total number of eligibility points a worker must have attained to be eligible to advance from this grade.

Review Weight Total

The system keeps a running count of the weightings you add to the reviews in your Review Sequence. The total must be 100 when you have entered all the weightings. The system warns you if the sum of your weightings is not 100.

Review Sequence

Enter a sequence number for the Number of Reviews you specified. Sequence number 1 is the most recent review, 2 is the review before that, and 3 is the review before that. The system uses the Review ID (which is a date) to associate the correct review with the correct sequence number and, therefore, the correct weighting.

If you do not want to weight the reviews, and you are using the non-weighted average review method, then enter the Number of Reviews and leave the Review Sequence(field) and Review Weight (next field) blank. The system will divide the review total by the number of reviews used in the calculation.

Review Weight

Unless you are using the non-weighted "simple average" method to determine the number of points, enter the weighting for each review in the sequence.