Example to Calculate Rates Based on a Retained Grade Rate

In this example, you calculate grade rate values for annual salary payments based on a retained grade rate without steps.

Scenario

Julianna is a Product Manager at grade 5 in the Product Manager grade ladder. As part of a company reorganization, she's moved from grade 5 to grade 4. The company put her on a retained grade of 5 for a period of 2 years. During this retained period, she will be paid the higher of her assignment grade.

In this example, you calculate grade rate values for her annual salary payments based on retained grades.

Configuration

Follow these steps to calculate rate values for Julianna:

1. Set up grades, grade ladder, and rates for the Product Manager job to record the level of compensation for product managers.

   • Use the Manage Grade task to set up separate grades 1 to 8.

   • For each grade, enter the annual salary as shown in this table.

   Grade	Annual Salary
   1	103900
   2	111800
   3	119900
   4	127800
   5	135900
   6	143700
   7	151800
   8	155500

2. Create a rate definition based on grade rate details. Add a rate contributor of type Retained Grade Ladder.

   Option	Value
   Periodicity	Annually
   Periodicity Formula	Standard Rate Annualized
   Currency	US Dollar

3. Associate a context with the Grade Retention Info page. You must associate a context for the assignment extensible flexfield to record the retained grade information. You can either associate this context with an existing page or you could create a new page based on your requirements. For more information on how to set up contexts, refer to the topic: Create Grade Retention Page and Associate With Retained Grade Context.

4. On the Additional Info page, set the Primary Indicator. Use the Additional Assignment Info task to set up the retained grade details.

   • On the Additional Assignment Info page, search for and select the employee.

   • In the Info Group field, select Grade Retained Info.

   • In the Retained Grade section, click Add.

   • In the Primary Indicator field, select Yes.

     Note: If you select the value as No, the application doesn't return any rate.

   • In the Grade Ladder field, select your grade ladder.

   • In the Grade field, select Grade 5.

5. Run the Generate HCM Rates process to calculate the rates based on the information held in the grade tables.

Results

The application returns a rate value of 135900.