Understanding Compensation Management

The compensation management feature is a salary planning tool that empowers managers or human resources administrators to make salary decisions based on real time information. The system also provides a flexible Web tool that enables managers to make adjustment recommendations to employee salaries.

The compensation review process begins when the human resources administrator sets up the rules and constants that define eligibility and guidelines for the use of the system. The administrator builds compensation review work tables to set up the organization defined matrices for eligibility and increase guidelines. After the review work tables are built, the human resources administrator can grant supervisors access to them. While the salary review process is open, supervisors are notified of any changes made to the Employee Master Information table (F060116) each time that they access the system. Therefore, supervisors are confident that they are making salary recommendations using the most current employee information. In addition to an online visual indicator of data changes, supervisors also receive emails that advise them of the changes.

As a human resources administrator, you can use this application to review or change salary records of any employee. Managers using this tool can review and change only the salary records of employees who report to them. Both human resource administrators and managers can review each employee individually or use the quick entry feature to review the entire group at once. When you use the quick entry feature, you can apply global increases that are based on the criteria that you select (for example, a 5 percent merit raise to all employees who are rated as outstanding).

For both input methods, you can review online the spent and remaining budget. The system displays this information for each increase type and for the total of all of the increase types. When the managers are finished making and approving compensation recommendations, the human resources administrator turns off supervisor access to the compensation management programs, and then runs a batch process to update the information to the active tables and to archive the salary planning information to historical records.

The Compensation Review Workbench program (P08826) is the initial entry point that human resources representatives use for all of the Compensation Management features in JD Edwards EnterpriseOne software. The Compensation Review Workbench program (P08826) located on the Manager Self Service menu (G05BMSS1) is the entry point for managers to use the Compensation Management features. These applications provide centralized access to the tools that you need to make salary recommendations, using budgets, rules, and approval requirements that are defined by the human resources department.

Both managers and human resources representatives can use their respective Compensation Review Workbench to perform these tasks:

• Determine which subordinates are eligible for each type of adjustment.

• Review employee history for position, job, and compensation data items.

• Review results from employee performance reviews.

• Review the recommended increase amount that the system generates, based on the criteria that the human resources department sets up.

• Calculate "what if" scenarios for each employee or for all of the employees as a group, and review the effect of these scenarios on budgets.

• Review salary planning information for indirect reports, such as employees who report to direct subordinates.

• Review approval statuses of salary increases for indirect reports.

This table shows the features you can access from the Compensation Review Workbench:

Feature	Usage
Open	You use the Open feature to select the compensation review model that you want to use in the salary planning process. You can select a public or private model, or the master model.
Guide	You use the Guide feature to directly access a Web address that you define in the processing options.
Rating Distribution	You use the Rating Distribution feature to quickly review the average increase for the increase types and determine how each of the increase types is distributed to the employees, based on their performance.
Submit	When you have finished with the compensation review, you use the Submit feature to submit the compensation recommendations to the supervisor. The system notifies you if the submission has been successful.
Return	You use the Return feature to return a submitted compensation recommendation to a supervisor. After the review is returned, the supervisor can make changes to the compensation recommendations or return the work of lower level supervisors.
Quick Entries	You use the Quick Entries feature to apply global increases, based on certain criteria, to the employees within a group.
Work Center	You use the Work Center to view or send messages pertaining to submitted salary recommendations.
Individual Review	You use the Individual Review feature to complete salary planning work for an individual.
Approval Inquiry	You use Approval Inquiry to display whether an employee record has been approved or rejected and the date for the last update to the record.
Attachment	You use the Attachment feature to add or view information that has been attached to the employee record.