Understanding Salary Plans

This section discusses currency defaults and conversion in salary plans.

Set up each salary plan with a unique ID. The series of grades within all salary plans have the same IDs, such as grades 001 to 010. Similarly, the steps that are within grades have the same IDs, such as Steps 1 through 10. Therefore, the salary plans are similar in terms of structure. However, for each plan, you establish different monetary values for the grade ranges and for the different pay components, amounts, percents, and salary points for the salary steps. In this way, you create unique plans with similar structures but with different compensation.

You then establish default compensation packages by tying the unique salary plans to different locations, job codes, military ranks, or individual workers. These defaults ease the administrative burden both at hire and when a worker has a job change. For example, assume that you hire a worker into a particular grade and step at one location, and then transfer the worker to another location. When you enter the location change, the system automatically assigns the salary plan of the new location to the worker if you are storing salary plans in the Location table. The new salary plan brings with it the same grade and step structure, but the compensation is appropriate to the new location.