How do I create compensation models?
Start on the Home page.
In this tutorial I’ll show you how to create models for compensation task worksheets.
Click My Team.
Building compensation models can help me align budgets and compensation awards with my organization’s pay practices and guidelines. I can use models to determine manager budgets based on various criteria, such as performance ratings or current compa-ratios of eligible people in their management hierarchies. I can also automatically allocate compensation amounts based on each person’s country, job, grade, and quartile.
Click Workforce Compensation.
Click the 1 of 20 link.
Here are all of my plans with active compensation cycles. I can create models for any of these plans that are configured to let me. I can see all the models I created and any global models available to me. Global models are created by compensation administrators for managers to use. I'm going to create a performance management salary model for the 2022 Annual Compensation Plan.
Click Models.
Click Create.
In the Model Name field, enter 2021 Performance Management Model.
Click the Component drop-down list and select Salary-Merit.
Click Continue.
Click the Criteria 1 drop-down list and select Job if not already selected.
Model properties determine how the model is built and who can access it. The allocation method determines the values I can enter in the model. Models let me select up to 4 criteria. In this case I want to model by 2 criteria - JOB and PERFORMANCE RATING.
Click the Criteria 2 drop-down list and select Oracle Fusion Performance Management rating.
Click Next.
By default, the model includes all of my people who’re eligible for the component. For this model, I want to remove the people I’m about to transfer to another team.
Click the Show drop-down list and select Show Managers.
Deselect the Mavery, Elizabeth checkbox.
Click to select the Also exclude subordinates checkbox.
Click OK.
Click Next.
I’ll model an increase of 3% on the eligible salaries of all analysts who have a Meets Expectations performance rating.
In the Analyst – 3-Meets Expectations row, Percentage of Eligible Salary field, enter 3.
Ratings of four and five increment at a 1% increase each.
In the Analyst – 4-Exceeds Expectations row, Percentage of Eligible Salary field, enter 4.
In the Analyst – 5-Outstanding row, Percentage of Eligible Salary field, enter 5.
Click Next.
Click Next.
Then I’ll select the model purpose. I can apply a model as budget amounts, compensation amounts, or target amounts, depending on the available options. I'm applying this model as budget amounts. If I was using manager-level budgeting, the sum of each person's individual modeled amounts would determine each manager's budget amount.Now that I’ve selected all the criteria, I’ll review the results.
Click the Display drop-down list and select Worker Details.
I can go through the results and see how the model affected the amounts allocated to each person.
Click Next.
Confirm that Overwrite existing budget values radio button is selected.
Click Save and Apply.
Now that I’ve saved and applied the model to budgets, I can start allocating compensation. This concludes the Creating Models for Compensation Task Worksheets tutorial. Thanks for watching.