Overview of Compensation Setup

You can plan and allocate salary and compensation for individuals and your workforce. You can also communicate compensation information to individuals.

To get started implementing compensation, you need to have the Application Implementation Consultant role. With that role, you can opt into the Compensation Management offering in the Setup and Maintenance work area. You can also enable the relevant functional areas for your business.

Functional Area	Description
Base Pay	Collect and store salary information and pass it to payroll for processing. Also set up salary ranges and metrics to help managers and HR specialists follow organizational policies when proposing and approving salary changes. For example, a manager reviewing salary information for a promotion sees that the salary is just below the midpoint of the person's grade rate. The person is a high performer, so the manager decides to increase the salary change to be above the midpoint.
Grade Step Progression	Automate people's progression through grade ladders according to eligibility criteria and rules that reflect your progression policies. Also propose a new salary amount for the progression, or even automatically update the salary amount. For example, automatically promote someone to the next step of a progression grade ladder after 1 year when their performance rates 4 or higher.
Individual Compensation	Design compensation plans that let managers and HR specialists allocate off-cycle compensation to individuals, such as bonuses, tuition reimbursement, or allowances. Also design plans that let individuals contribute to charities or savings plans. And, identify the compensation awards that individuals can see in their compensation history.
Workforce Compensation	Create compensation plans and cycles used for compensating a group of workers. Configure the type of compensation allocated, the information displayed to managers, and whether to use budgeting. Also configure eligibility criteria for the plan or component, and the approval hierarchy.
Total Compensation Statements	Design and deliver statements for individuals that can include traditional forms of pay, such as salary and individual compensation awards. You can also include nontraditional forms of pay, such as fringe benefits, cost of benefits, and paid time off.
Market Data	Analyze compensation survey data, survey jobs, survey job structures, and other survey attributes. Survey data can include key metrics, such as percentiles and deciles.