7Manage Workforce Compensation

This chapter contains the following:

Overview of Manage Workforce Compensation

Managers allocate one or more types of compensation manually or automatically for a group of workers on a focal, anniversary, or periodic basis. Compensation administrators process and transfer approved data to workers' HR records.

Line managers perform the following tasks:

  • Allocate compensation.

  • Promote and rate worker performance while allocating compensation.

  • Determine compensation amounts offline by downloading details to a spreadsheet.

  • Use a model to automatically calculate and allocate compensation to workers based on selected criteria.

  • Generate company-configured compensation change statements to notify workers of a compensation award, job change, or performance rating assignment.

  • Analyze proposed changes for equity among peer groups and by manager, alignment with the market, and pay for performance strategies.

  • Review and approve work of subordinate manager.

Compensation managers can also perform these tasks for oversight, to override, and to act as a proxy.

To manage workforce compensation, start from the following work areas:

Role Work Area

Line Manager

My Team - Workforce Compensation

Compensation Manager

My Team - Workforce Compensation

Compensation

Compensation Administrator

Compensation

Tasks for allocating compensation include:

  • View compensation plans

  • View the worksheet

  • Award a bonus

Viewing Compensation Plans

View the compensation plans that are available to you and action history for a plan.

  1. On the Home page, click My Team, Workforce Compensation to open the landing page.

  2. Click the 1 of 18 link to open the plans dialog box.

    You can see all of the compensation plans that you have access to.

    Primary Managed Plans are plans in which you have responsibility for submitting the allocation for approval. You can't submit Secondary Managed Plans and Other Plans for Review for approval.

    Depending on how the plan is set up, you can provide input to another manager or you may just be able to view the plan.

  3. Click Annual Compensation Plan 2017.

  4. Click Action History to open the action history dialog box.

    You not only see what plans are assigned to you, you can also see your access, the status, and approvals. You have a budget assigned to you and the current status is Work in progress. You can take action on your plan or submit the plan for approval.

  5. Close the dialog box to return to the landing page.

    Compensation plans are configurable. The compensation department has set up this plan with tasks to guide you through this process.

Viewing the Worksheet

View summary analytics, actions you can take on the worksheet, filter your worksheet, and view alerts.

  1. Click Reward.

    On the Reward page, you can allocate salary, bonus and stock. The total values for the organization are displayed in the Scoreboard View. You can also switch to the Analytic View to see this information in a more visual format.

  2. Click Analytic View.

  3. Click Scoreboard View.

  4. Click Actions

    There are several actions you can take, such as changing a worker's eligibility or reassigning a worker to another worksheet manager.

  5. Close the Actions menu.

    You can see all the information made available to you to make informed compensation decisions.

  6. On the Worksheet section toolbar, click Team, All Workers.

    Within the worksheet, you can filter who you want to see. Using the team filter, you can select just your direct reports, a specific manager, or look at all workers.

  7. In the Joseph, Brian row, hover over the Alert icon.

    Alerts are useful when allocating compensation. For example, they can call attention when you enter a value that exceeds the allowed amount, when there is a salary issue, or when a worker terminates.

Awarding a Bonus

Award a bonus, submit your worksheet for approval, and send feedback.

  1. In the Gilbert, Simon row, in the Bonus Amount field, enter 1000.

    Entering information on the worksheet is easy. In this plan, columns you can enter information into are shaded so you can identify them quickly. Notice as you entered an amount, the bonus percentage automatically calculates.

  2. Scroll to the right.

    You can also enter notes or attachments to help justify your entries to your approving manager.

  3. Click Save and Close.

    When you're finished with your allocations, you can save the worksheet and return to it later, or submit it for approval.

  4. Click Submit for Approval to open the submit dialog box.

    If you submit it, you won't be able to make further updates to the worksheet and your manager is notified that your allocations are ready for review.

  5. Click Submit to open the Confirmation dialog box.

  6. Click Send Feedback.

    Once you submit your worksheet for approval, you can send feedback. Sending feedback is a great way to inform Compensation Administrators what did and did not work during the compensation cycle. After you fill out the survey, you only need to submit and you have completed your allocations for this cycle.

Note the type of compensation information that appears varies depending on how your company configures compensation.

As a manager progresses through a workforce compensation cycle, the manager's worksheet status changes. The following table shows the manager's worksheet status and the progress in the workforce compensation cycle.

Status Progress

Budget Available

The manager received a budget.

Not Started

Manager hasn't saved any changes to his or her worksheet.

Work in Progress

Manager saved some changes to his or her worksheet.

Submitted

Manager submitted his or her worksheet for approval.

In Approvals

First-level manager approved the manager's worksheet.

Fully Approved

Highest-level manager or approver in the approval hierarchy approved the manager's worksheet.

Processed

The Transfer Data to HR process ran and posted all awards to HR and payroll.

Worksheet managers can create advanced worksheet filters to manage their workers in compensation plans. Creating worksheet filters can help you identify workers who meet certain criteria so that you can allocate compensation more easily. Use the following steps to create filters:

  1. Click My Team.

  2. Click Workforce Compensation.

  3. Click the 1 of 13 link.

    You create a filter for the Simple Merit and Bonus 2018 plan.

  4. Click the Simple Merit and Bonus 2018 link.

  5. Click the Reward icon.

  6. Click the Filter icon.

    You can see two filters - Country and Job. You can also see an Edit Advanced Filters icon which lets you create additional filters. Your administrator determines the filters you can see and whether you're allowed to create additional filters during setup. If you don't see these filters, you must contact your administrator to have them enabled.

  7. Click the Personalize Layout icon.

  8. In the Table Filters section, select Open to have the filters appear automatically.

  9. Click Save and Close.

  10. Click Edit Advanced Filters icon.

    If the existing filters aren't what you need, you can use the Advanced Filter option to create your own filters using the columns available in the worksheet.

  11. Click the Add Row icon.

    You create a filter to show the workers whose bonus amounts are below the target amount.

  12. In the Name field, enter the name of the filter as Bonus less than target.

  13. Click the Edit icon.

  14. Click Build Condition.

  15. From the Column list, select Bonus Amount.

  16. In the Operation list, select Is less than.

  17. Click the Switch to Column button to compare the value in one worksheet column against the value from another worksheet column.

  18. In the Column list, select Bonus Target Amount.

    If you want to narrow your results even further, click Next and add more conditions to this filter.

  19. Click Done.

    After you create a filter, you can edit it, add additional conditions, or delete any of the existing conditions.

  20. Click Validate to verify if the expression is valid.

    If there are no errors with the expression, the filter is ready for use.

  21. Click OK.

  22. Click Apply.

  23. Click Save and Close.

  24. From the Advanced Filters list, select Bonus less than target.

  25. Click the Go icon to apply the filter.

    You can see there are no workers whose proposed bonus is less than their target amount.

This example demonstrates how to create conditions to filter your worksheet. You want to create a filter to see workers who satisfy the following criteria:

  • Performance rating is outstanding

  • Compa-ratio less than 80

Task Summary

To create the condition to filter your worksheet, complete the following tasks:

  1. Create a condition.

  2. Apply it to filter workers on the worksheet.

Use the default values except where otherwise indicated.

Prerequisites

Your administrator must have:
  1. Enabled and configured Compensation Performance Ratings using the Configure Performance Ratings task.

  2. Enabled Advanced Filters using the Configure Filters task.

  3. Enabled the following columns, if not already enabled, using the Configure Worksheet Display task:

    • Salary Range Compa Ratio - Current

    • Compensation Performance Rating - Current

Creating a Filter

  1. In the Workforce Compensation work area, select the plan.

  2. On the worksheet task bar, click the Edit Advanced Filters button.

    You might have the option to use View More Filters to access the Edit Advanced Filters page.

  3. Click the Add Row button.

  4. In the Name field, enter a unique filter name.

  5. In the new row, click the Edit button.

  6. Click Build Condition.

  7. Complete the fields as shown in this table. Click Next after each selection, as required.

    Field Value

    Column

    Compensation Performance Rating - Current

    Operation

    Equals

    Value

    Outstanding

    Operation

    And

    Column

    Salary Range Compa-Ratio - Current

    Operation

    Is less than

    Fixed Number

    80

  8. Click Done to finish the condition.

  9. Click Apply to return to the Edit Advanced Filters page.

  10. Click Save and Close to return to the worksheet.

Applying the Filter to a Worksheet

  1. On the worksheet filters bar, select the filter that you created in the Advanced field.

  2. Click the Go button.

  3. View your filtered worksheet.

Reassign or Delegate Workers During a Compensation Cycle

During a workforce compensation cycle, you might want a manager other than a worker's primary worksheet manager to give suggestions or allocate compensation. There are two ways for other managers to give suggestions or allocate compensation for one or more workers:

  • Reassignment

  • Delegation

Both reassignment and delegation are for the plan cycle only. They don't affect the primary worksheet manager relationships configured for the plan.

Reassignment

Reassignment moves a worker to another manager's worksheet so the other manager can allocate compensation. When you reassign a worker to another manager:

  • The worker disappears from the primary worksheet manager's worksheet.

  • The other manager makes the allocations and submits the worksheet.

For example, Joe recently joined Meg's group. He worked for Maria for most of the year covered by the compensation cycle. Meg reassigns Joe to Maria, who then evaluates his performance and allocates compensation.

Delegation

Delegation grants another manager temporary access to a worker who does not report to the other manager or fall within the other manager's reporting hierarchy. A primary worksheet manager can also use delegation to create a separate worksheet to manage a distinct set of his own workers. When you delegate a worker to another manager:

  • The worker remains on the primary worksheet manager's worksheet.

  • The other manager does not have access to:

    • Approvals and communication tasks

    • Download to spreadsheet

    • Worker reassignments and eligibility changes

    • Budgeting, modeling, reporting

  • The other manager can suggest but can't submit allocations.

  • The primary worksheet manager:

    • Sees the suggested allocations

    • Makes the final allocations

    • Submits the worksheet

For example:

  • Serena works for Roger, but at a different location. Andy is the manager for the remote office and manages Serena's day-to-day activities. Roger delegates Serena to Andy so he can comment on her performance and suggest a bonus amount. Roger sees the suggested amount and makes the final allocation.

  • Robert wants to isolate a unique group of his workers. He selects the workers and delegates them to himself.

You can change workforce budget and compensation amounts using the integrated Microsoft Excel workbook. Download the current budget sheet and worksheet data, make your changes, and upload them to the application database.

Download the Workbooks

In the Workforce Compensation work area, on either the budget sheet or worksheet, click Prepare in Workbook to create the workbook. The export builds the workbook for your entire organization, not just the workers in the worksheet or the budget sheet. The workbook format and content is independent of anything you did to personalize the budget sheet or worksheet.

For example, the workbook doesn't apply the filters you set. It also doesn't freeze, hide or show, reorder or change the size,, or sort columns and data to match the budget sheet or worksheet.

Edit Budget or Workbook Data

After the download completes, you can change data in cells with a white background. The workbook adds a symbol in the Changed cell to mark the rows where you changed or entered data in one of the white cells. You can only enter values in amount columns. You can't enter or change a value in a percentage column. When you upload your changes, the application recalculates the percentage of eligible salary column using the compensation amount you entered in the workbook.

The workbook doesn't change results of dynamic calculations and fast formulas when you change values that they use. The application recalculates the results after you upload your changes and refresh the page. The recalculation happens only if you have configured the calculations and formulas to recalculate when data changes on the worksheet.

Upload Budget or Worksheet Changes

When you're done,, click Upload. The application uploads only those rows that are marked as Changed. It ignores any changes in cells without a white background.

Caution: Don't select the Upload and then immediately download option when prompted during an upload. The data that you uploaded immediately downloads back into the workbook, hiding any errors that occurred during the upload.

Validate Changes

To see the updated data, leave the budget sheet or worksheet and then return. Or if your session expired, sign back in.

Resolve Errors

The upload process automatically updates the Status field in each workbook row. If there are errors that require review, the process:

  1. Rolls back the change in the application.

  2. Sets the workbook row status to Upload Failed

  3. Continues to the next workbook row

To view and resolve an error:

  1. Double-click Update Failed in the Status field.

  2. Fix any data issues in the workbook.

  3. Upload the latest changes.

If you're ranking more than just your direct reports, you can automatically rank workers from highest rank to lowest rank using one of three methods:

Regardless of the method you select to automatically rank workers, multiple workers could have the same rank in the results. You select whether to either:

  • Retain the ties

  • Arbitrarily resolve ties

How you handle ties can change the ranking results for any of the three automatic ranking methods.

Rank Workers Based on Their Ranking Score

The ranking score considers the rankings of all managers who ranked the worker and who are in the viewing manager's organization. A worker's ranking score:

  • Varies according to the manager viewing the score.

  • Considers each manager's position in the hierarchy.

    The rankings of higher level managers have more weight because the ranking compares the worker against a larger population of workers.

The following table compares the different ranking results for the same scores when you retain the ties or arbitrarily resolve the ties.

Worker Score Retain Ties Arbitrarily Resolve Ties

Maria

100

1

1

Rahul

92

2

2

Maya

92

2

3

Janice

92

2

4

Carlos

32

3

5

Michael

32

3

6

Yan

18

4

7

Rank Workers Based on Their Ranking Percentile

The ranking percentile considers the ranking given by a worker's direct manager when ranking at least ten workers. It places workers in order from highest to lowest within a range of 0 to 100.

Calculation: 100 - (rank / population * 100) = percentile. The population is the total number of workers ranked by the direct manager. For example, if the direct manager ranks a worker five out of the 27 workers she ranked , the percentile is 82. Calculation: 100 - (5 / 27 * 100) = 82%.

The following table compares workers based on their ranking percentile.

Worker Percentile Retain Ties Arbitrarily Resolve Ties

Maria

95

1

1

Rahul

92

2

2

Maya

82

3

3

Janice

82

3

4

Carlos

64

4

5

Michael

50

5

6

Yan

47

6

7

Copy Direct Managers' Rankings

The ranking score uses rankings given by each worker's primary worksheet manager exactly as given.

  • Multiple workers can have the same ranking.

  • Ranking values need not be consecutive.

  • Managers can select to give the same ranking to multiple workers or can select to leave gaps in the ranking.

The following table compares the different tie handling results for a manager viewing the rankings that managers in his organization gave to their direct reports.

Direct Manager Worker Direct Manager's Ranking Copy Direct Manager's Ranking Retain Ties Arbitrarily Resolve Ties

Lakshmi

Maria

1

1

1

1

Lakshmi

Rahul

2

2

2

3

Lakshmi

Maya

3

3

3

4

Lakshmi

Janice

4

4

4

6

Barry

Carlos

5

5

5

8

Barry

Michael

3

3

3

5

Barry

Yan

2

2

2

2

Barry

Prasad

4

4

4

7

Tasks for promoting a worker during a workforce compensation cycle include:

  • Verify the worker's eligibility for promotion

  • View the worker's performance in relation to the rest of the team

  • Submit the promotion for approval

Verifying the Worker's Eligibility for Promotion

View the job history of the worker you plan to promote. In this case, you're signed in as Susan, a director, who needs to complete the allocations for this year's compensation cycle.

  1. In the My Team work area, click Team Compensation.

  2. In the Related Links side panel tab, click Manage Workforce Compensation.

  3. Click the 1 of 13 link to open the Primary Managed Plans dialog box.

  4. Click Simple Merit and Bonus 2018 to view the details of the plan.

  5. Click the Promote icon.

    During the compensation cycle, you can promote or change their Grade, Job, or Position.

  6. In the Carnes, Linda row, click the Job History icon.

    Verify that the worker meets the company guidelines to be eligible for the promotion. In this case, the job history indicates that Linda Carnes meets the company guideline that a worker must be a Human Resources Specialist for at least three years to be promoted to a Human Resources Business Partner.

  7. Click Done.

  8. From the Proposed Job list, select Human Resources Business Partner.

  9. From the Proposed Grade list, search for and select Prof06.

  10. Click the Note icon.

  11. On the Notes toolbar, click the Create icon.

  12. In the Notes field, enter a justification for why you're promoting the worker. In this case, enter Linda has been training for 2 years for this position and has repeatedly exceeded expectations each year.

  13. Click OK.

    You can optionally add attachments such as the worker's last performance review or the certifications that the worker has earned.

  14. Click Done.

Viewing the Worker's Performance in Relation to the Rest of the Team

As you go through your promotions, you can use the analytics in the summary to see how these promotions look across your team before you submit them for approval.

On the By Team tab you can see how many and what percentage of workers in your team are being promoted. In this case, 1 of 5 workers in the team, or 20% of the team, is being promoted.

The following steps show how you can view the promotion in relation to the rest of the team:

  1. Click By Current Job to see what jobs you're promoting workers from.

  2. Click By Performance Management Rating. In this case, you can see that you're promoting workers with the rating of Exceeds Expectations.

  3. Click Organization Averages to see how the promotion affects the whole organization. You can view all the promotions submitted to your manager. In this case, you can see that only you have submitted a promotion among your manager's reports.

  4. After you have verified all the information, click Save and Close.

  5. Click Submit for Approval.

    By clicking Submit, you send your full worksheet for manager approval and not just the promotion. Your manager's approval will apply also to your subordinates' worksheets, preventing any further changes. Ensure that you complete your bonus allocations and all the managers who report to you have saved their changes before you submit.

  6. Click Cancel.

    In this case, you have saved Linda's promotion for the time being.

Tasks for approving and submitting work in compensation plans include:

  • View your approvals

  • View the compensation overview

  • View the allocation statistics

  • Check for alerts or warnings

  • Approve and submit the worksheets

In this case, you're signed in as Henry Jones, a manager.

  1. In the My Team work area, click Workforce Compensation.

  2. Click the 1 of 14 link to open the Primary Managed Plans dialog box.

  3. Click Corporate Bonus Plan 2018 to view the details of the plan.

Viewing Your Approvals

  1. Select Approvals.

    You must take action on a pending worksheet before you can submit your entire worksheet for approval. The approvals tab displays the details of all the managers who report to you. Expand the view to see lower-level managers for each of your direct reporting managers. You can approve a manager's worksheets and see where the worksheets are in the approval process. You can also look at the status of your entire organization.

  2. In the Jones, Henry row, click the Manager's Team Status icon.

  3. Click the Detailed Status Report to see the approval status of your entire team. The Details tab gives you the details of the approval status of your entire team.

  4. Click Done.

    The Action Required column shows you who among your managers still needs to take action on the worksheet. In this case, you can see that one of your managers needs to take action on the worksheet.

  5. In the Swift, Linda row, click the Access Level list and show options.

    You can change the worksheet access for lower-level managers. In this case, Linda Swift is a new manager. At the beginning of the compensation cycle, you changed her access to No updates allowed and allocated compensation to her team on her behalf since she wasn't present during the performance time frame.

    In this case, you want Linda to be able to see the compensation you allocated to her team. Therefore, you set her worksheet access to No Updates Allowed. If you don't want a lower-level manager to see the allocations you have made, set the access for that manager to No Access.

  6. In the Swift, Linda row, click to close the Access Level list.

    You can request information from managers at any time, even after they have submitted their worksheets for approval. You can also return their submitted worksheets if they need to make changes.

    In order to take any of these actions, you must click to highlight the person that you want to take action on.

Viewing the Compensation Overview

Use the Compensation Overview tab to understand how the allocations look for your entire organization before submitting your own worksheet for approval.

  1. Select Compensation Overview

    The Compensation Overview highlights the number of eligible workers in each of your manager's teams that were allocated a bonus. See how the total bonuses allocated compares to the budget given to each manager. You can also see how total amounts allocated compare to total budgets, if you use budgets.

  2. In the Component list, select either Salary or Bonus to view the figures for each independently. In this case, the plan is only for bonuses.

Viewing the Allocation Statistics

Use the Allocations Statistics analytics to see how the average and highest bonus allocations compare across your lower managers' teams. Select Allocation Statistics to see the allocation details.

Checking for Alerts or Warnings

Check Alerts to view outstanding issues that need to be resolved before you submit your worksheet for approval.

  1. Select Alerts.

  2. In the Jones, Henry row, click 2 in the Alert column.

  3. Click the Question Mark icon.

    In this case, you can see that the alert is informational and doesn't require any action.

  4. Click Done.

Approving and Submitting the Worksheets

After you have reviewed the worksheets of your lower managers, you can approve them.

  1. Select Approvals

  2. From the Approve list, select All Managers.

  3. Click Yes.

  4. Click OK.

  5. Click Save and Close.

    After you have approved the worksheets for all you lower managers, you can submit your own worksheet for approval.

  6. Click Submit for Approval.

  7. Click Submit.

Use the Workforce Compensation page to manage secondary compensation plans and other plans that are available to you.

View Secondary Managed Plans

  1. On the Home page, click My Team, Workforce Compensation to open the landing page.

  2. Click the 3 of 11 link to open the plans dialog box.

  3. In the Secondary Managed Plans section, click Global Compensation Plan 2019.

  4. Click Allocate Merit.

    You can review the compensation details of the workers who reported to you during a project.

  5. In the Salary Amount field, enter the appropriate value.

  6. Click Save and Close.

View Other Plans for Review

  1. Click the 10 of 11 link to open the plans dialog box.

  2. In the Other Plans for Review section, click Global Compensation Plan 2019.

  3. Click Allocate Merit.

    You can review the compensation of workers who used to report to you, but now have transferred to other teams.

  4. Click Save and Close.

Submit Worksheet for Approval

  1. Click the 11 of 11 link.

  2. In the Primary Managed Plan 2019 section, click Global Compensation Plan 2019.

  3. Click Submit for Approval.

  4. Click Submit.

  5. Click OK.

FAQs

Can I switch to any other manager?

You can switch to any user who is in your security profile. For line managers, this is commonly lower-level managers in your hierarchy.

Follow these steps:

  1. Use the Assign Workers to Another Manager option on the Actions menu or the right-click menu to transfer one or more workers for this cycle only.

  2. Select the manager to whom you want to reassign the workers.

  3. Specify how to reassign subordinates if the workers are managers.

For example, you reassign a worker to his previous manager's worksheet because the worker reported to that manager during the evaluation period.

The summary table information dynamically changes to show the values for the teams you select. When you further filter the worksheet, such as by job, the summary information changes to reflect the filtered data. It continues to display the budget information associated with the managers that you selected in the team filter. The budget information changes when you use worker-level budgeting but not manager-level budgeting. The other data, such as eligible salary and total allocations, change with the filters.

Switching the display currency on the page has no effect on the processing. The application processes the salary adjustments and lump sum awards in the worker's local currency.

Primary managed plans are plans for which you are responsible for managing and allocating compensation to your team. You submit primary managed plans for approval.

Secondary managed plans and other plans for review are plans for which you are not the primary worksheet manager but have at least one worker delegated to you. You can suggest and save allocations for the worker if you are given the ability to update the worksheet. You don't submit allocations for approval for workers delegated to you. If you don't have a secondary managed plan or other plan to review, those regions don't appear in the available plans window.

Another manager has given you temporary access to one or more workers so you can suggest allocations. You can review the other plans in the workforce compensation work area.

What happens if I delegate a worker to another manager?

The other reviewer sees a plan that includes the delegated worker in the Other Plans for Review section of the available plans window. The other reviewer views the worksheet data and suggests allocations. The worker remains on your worksheet. You can accept or override the suggested allocations. When you submit your worksheet, you submit the allocation for the delegated worker.

Can I perform actions for the workers in my other plans to review?

Yes. You can suggest compensation amounts and save your suggested allocations. You can view other data available in the worksheet. The primary worksheet manager of the delegated worker sees the suggested allocations on his own worksheet.

The lower manager's access level changes to Approved and the worksheet goes to the next level for approval. Lower managers can no longer make updates to their worksheets