Understanding Wage Progression
When you assign a worker to a labor agreement and bargaining unit on the Job Data - Job Labor page (JOB_LABOR) and a salary plan with wage progression rules on the Job Data - Salary Plan page (JOB_DATA_SALPLAN), you can manage their wage plan's step progression using the wage progression processes.
Wage progression is the step-by-step advancement of a worker's compensation rate from a beginning rate to one of full parity. The progression is based on a wage progression rule associated with the worker's salary plan. The rule includes step progression requirements and a rate calculation formula.
The Update Wage Progression processes gather the data required to make a decision about the worker's eligibility to advance and stores that information in the Review Wage Progression component (HR_WP_MAINT_ACTVTY). Once all of the necessary data is accumulated , the system can flag qualified workers for advancement. The system inserts a new Job Data row for the qualified workers with their new step and related wage rate. The system processes the new compensation rate in the next payroll.
If, during the calculation of a worker's new rate, they reach or exceed the maximum rate for the salary grade, the system considers them at parity for their job wage rate. In these circumstances, the system increments the worker to the next highest step for the grade and no longer includes them in the wage progression processes.
See Understanding Wage Progression and Administer Compensation.
To insure timely reflection of the increased pay rate in a worker's paycheck, evaluate workers on wage progression for step increases prior to each payroll.
To manage wage progression:
Set up wage progression run IDs on the Wage Progression Run ID page (HR_WP_ID_DEFN).
Wage progression run IDs determine the population of workers considered for processing. The run ID is the key value in progression processes.
To process wage progression rules based on time worked , you must import time data into the wage progression staging table.
Use the Extract Payroll Data process (HR_EXTRT_NAP) to extract the last pay period's confirmed time data from Payroll for North America. Write additional processes to extract data from other time sources. The Update Wage Progression - Update Activity with Time Data process retrieves the time data from this table.
Run the Update Wage Progression processes from the Update Wage Progression page (RUN_UPD_WP_ACTVTY).
To be included in wage progression processing, a worker must have the following:
A labor agreement.
A bargaining unit.
The Stop Wage Progression check box on the Job Data - Job Labor and Review Wage Progression page is not checked.
Use the Approve Employees to Advance page (HR_WP_ADVANCE) to approve workers for wage progression if approval is required by the salary plan's wage progression rule.
See Approving and Processing Wage Advancements.
Note: To set up a salary plan requiring advancement approval, select the Advancement Approval Required check box on the Salary Plan Table - Define Wage Progression Rule page (SALARY_PLAN_TABLE2).
The system will automatically approve workers for advancement if their job and time data meets the advancement criteria and if their plan's wage progression does not require approval for advancement.
See Understanding Wage Progression and Administer Compensation.
Process workers approved for advancement using the Advance Employees to next Step process (HR_WP_ADV) from the Process Wage Progression page (RUN_UPD_WP_ADVC).
At any point in the process, you can review or modify a worker's wage progression activity details on the Review Wage Progression page (HR_WP_MAINT_HIST).