Base Pay Setup and Maintenance Tasks
You can calculate, adjust, and maintain salary and hourly earnings for your people by completing these setup tasks in the sequence listed.
| Task Name | Description | Recommended Help |
|---|---|---|
| Elements | Create legislative data group (LDG) payroll elements to use when you configure salary bases. For example, create recurring standard earnings to handle annual salaries and hourly earnings. | |
| Grades | Create grades that record people's level of compensation. And define one or more grades that apply for jobs and positions. You use the grade rates for grades to validate salary proposals. | |
| Grade Rates | Create grade rates to hold the pay values related to each grade. Grade rates linked to salary bases typically serve as guidelines to validate that proposed salary is appropriate for that grade. | |
| Progression Grade Ladder | Optionally create progression grade ladders to automatically move people from one grade, or grade and step, to the next level in a grade ladder. For example, you want to automatically move new hires to the next step after their first 6 months on the job. | |
| Compensation Zones | Optionally create compensation zone and zone types to use in salary range differentials that adjust base ranges by compensation or wage regions. For example, you want to pay everyone working on the East Coast of the US at 1.1 times the standard grade rate. You want to pay everyone working on the West Coast at 1.2 times. You pay Central people the standard grade rate and everyone in the South at 0.8 times. | |
| Salary Range Differentials | Optionally create salary range differentials to adjust base salary ranges from the grade rate associated with the salary basis. Differentials vary, for example, to reflect the cost of living in different locations or the relative ease of hiring. You use these differentials when configuring salary bases. | |
| Configure Actions | Optionally add actions to identify the cause when creating or changing salary. For example, track that salary changed as part of a promotion or transfer. | Action Framework |
| Action Reasons | Optionally add reasons to associate with actions, mostly for reporting and analysis. For example, when a manager changes someone's salary as part of a transfer, have them indicate whether it's because of cost of living. | Action Framework |
| Manage Common Lookups | Optionally change or add components to the CMP_SALARY_COMPONENTS and ORA_CMP_SIMPLE_SALARY_COMPS lookup types to better support your reporting policies for salary allocations. You use the incremental or simple salary components when configuring salary bases that let HR specialists and managers itemize new or adjusted salary. The itemizations reflect the different reasons for their allocations. | |
| Salary Basis | Create salary bases that get used when creating salary and help with processing. For example, salary basis settings get used to decide salary amounts, currency, frequency, and metrics. And the payroll element linked to the salary basis holds the salary amount, which gets passed to payroll for processing. | |
| Manage Task Configurations for Human Capital Management | Optionally change default approval workflows to support your salary change policies. For example, automatically approve salary changes proposed by HR specialists. Route approvals based on country and amount. And specify the levels of approval using grades. | |
| Manage Profile Options | Enable the applicable salary actions controlled by profile options. For example, let people use HCM Data Loader to load salary changes when related salary is pending approval. Prevent people who don't have access to the source assignment salary from proposing salary during global transfers. And copy future salary changes during local and global transfers. Also, if you're going to use autocomplete rules with salary objects, you need to expose the Autocomplete Rules feature. | |
| Sandboxes | Enable a sandbox to access the HCM Experience Design Studio and Autocomplete Rules for the Salary object. You can either manually create and enable a sandbox or automatically create it. |
Security Reference
The tasks that people can do and the data that they can see depend on their roles, duties, and privileges. For information about these factors, see these two guides: