Variable Compensation Plans

The PeopleSoft HR Manage Variable Compensation business process enables you to create and manage multiple variable compensation plans. These plans can encompass everything from onetime ad hoc awards to stock options, bonus plans, non-cash incentives, and holiday gifts or bonuses.

Variable Compensation plans can be simple or complex based upon prorated eligibility, goal levels, funding allocations, smoothing mechanisms, and approval processing.

You have the flexibility to create variable compensation plans that support your organization. To add a Variable Compensation plan, you must define a salary plan before you define your compensation cycle. The new Compensation Cycle functionality does not change the configuration of Variable Compensations plans.

Using compensation cycles to adjust employee salaries can help you effectively manage your compensation information, adjusting employee salaries as changes are processed. Compensation cycles also involve other variable compensation awards.

On the Compensation Cycle Definition - Awards page you can associate a Variable Compensation plan to your Compensation Cycle definition. The system provides complete configuration and award calculations for PeopleSoft Variable Compensation.