1. Implementing Compensation
  2. Configure the Compensation Amount Dynamic Column of the Bonus Component to Reward High Performers

Configure the Compensation Amount Dynamic Column of the Bonus Component to Reward High Performers

Here's how you can configure the dynamic column of the Compensation Amount - Bonus component to calculate bonuses according to performance ratings.

For example, people with outstanding performance ratings get a bonus that's 10% of their annual salary. People who exceed expectations get a 5% bonus. People with other performance ratings don't get any bonus.

Before You Start

You need to complete these configuration tasks before you can configure the dynamic column:

  1. Create a workforce compensation plan using the Workforce Compensation Plans task.
  2. Configure a bonus compensation component using the Configure Compensation Components task.
  3. Configure performance management or compensation performance ratings that use a scale of 1 to 5 where 5 is Outstanding and 4 is Exceeds. Use the Configure Performance Ratings task.
  4. Enable the appropriate performance rating columns and the Compensation Amount column of the bonus component using the Configure Worksheet Display task.

Configure the Dynamic Compensation Amount Column

  1. In the row for the bonus component Compensation Amount column, click the Dynamic Column icon.
  2. On the Dynamic Column page, select the Start compensation cycle and Refresh data triggering events.

Build the Condition for People with a 5 Rating

This condition identifies people with a performance management rating of 5 and awards them a bonus that's 10% of their annual full-time salary.

  1. Click the Add icon.
  2. In the Sequence field, enter 1.

  3. Identify the eligible people.

    1. Under Condition, the Create or Edit Expression icon.
    2. On the Edit Condition dialog box, Basic tab, click Build Condition.
    3. In the Column field, select Performance Management Overall Rating.
    4. In the Operation field that appears, select Equals.
    5. In the Fixed Value field that appears, enter 5.
    6. Click Done.
    7. Optionally, click Validate. On the confirmation, click OK.
    8. Click Apply.

  4. Award the 10% bonus.

    1. On the Dynamic Column page, under Column Results, click the Create or Edit Expression icon.
    2. On the Edit Column Result dialog box, Basic tab, select Equation.
    3. Click Switch to Column.
    4. In the Column field that appears, select Annualized Full-Time Salary - Current.
    5. Click Next.
    6. In the Operation field that appears, select Multiplied by.
    7. In the Fixed Number field, enter .1.
    8. Click Done.
    9. Click Apply.

  5. Add the description.

    1. On the Dynamic Column page, under Description, click the Create or Edit Description icon.
    2. On the Description dialog box, enter Award a 10% bonus to people with a performance rating of 5, which identifies them as outstanding.
    3. Click Apply.

Build the Condition for People with a 4 Rating

This condition identifies people with a performance management rating of 4 and awards them a bonus that's 5% of their annual full-time salary.

  1. Click the Add icon.
  2. In the Sequence field, enter 2.

  3. Identify the eligible people.

    1. Under Condition, the Create or Edit Expression icon.
    2. On the Edit Condition dialog box, Basic tab, click Build Condition.
    3. In the Column field, select Performance Management Overall Rating.
    4. In the Operation field that appears, select Equals.
    5. In the Fixed Value field that appears, enter 4.
    6. Click Done.
    7. Optionally, click Validate. On the confirmation, click OK.
    8. Click Apply.

  4. Award the 5% bonus.

    1. On the Dynamic Column page, under Column Results, click the Create or Edit Expression icon.
    2. On the Edit Column Result dialog box, Basic tab, select Equation.
    3. Click Switch to Column.
    4. In the Column field that appears, select Annualized Full-Time Salary - Current.
    5. Click Next.
    6. In the Operation field that appears, select Multiplied by.
    7. In the Fixed Number field, enter .05.
    8. Click Done.
    9. Click Apply.

  5. Add the description.

    1. On the Dynamic Column page, under Description, click the Create or Edit Description icon.
    2. On the Description dialog box, enter Award a 5% bonus to people with a performance rating of 4, which identifies them as exceeds expectations.
    3. Click Apply.

Build the Condition for People with Lower Ratings

This condition identifies people with a performance rating that's less than 4 and doesn't award them any bonus.

  1. On the Dynamic Column page, click the Add icon.
  2. In the Sequence field, enter 3.
  3. Select Default.

  4. Award no bonus to everyone who failed to meet the other two conditions.

    1. Under Column Result, click the Create or Edit Expression icon for the expression you just created.
    2. On the Edit Column Results dialog box, Basic tab, in the Fixed Value field, enter 0.
    3. Click Done.
    4. Click Apply.

  5. Add the description.

    1. On the Dynamic Column page, under Description for the condition you just created, click the Create or Edit Description icon.
    2. On the Description dialog box, enter Don't award any bonus to people with a performance ratings below 4.
    3. Click Apply.

Test the Dynamic Column Conditions

  1. On the Dynamic Column page, click the Test Condition and Column Results icon.
  2. On the Test Condition dialog box, complete the fields, as shown here.
    Variable Name Test Value
    Performance Management Overall Rating 5
    Annualized Full-Time Salary - Current 50000
  3. Click Test.
  4. Verify that the results are what you expected and click OK.

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