Adjusted FTE when Salary or Component Amount Defaults from Grade Ladder Rates

You can default salary or component amounts from grade ladder rates in HR actions such as Hire, Transfer, and Promote. You can now use the adjusted FTE from the worker's assignment instead of their FTE, when you prorate the amounts from the grade ladder for FTE.

To configure the feature to prorate salary for FTE (or adjusted FTE), use the Salary Adjustment Type on the grade ladder. This image shows the Salary Adjustment Type attribute on the Redwood Grade Ladders page. The attribute isn't new with this enhancement, and it's also available on the classic Progression Grade Ladders page. The change with this enhancement is that if you set the grade ladder to adjust for FTE, the feature can be configured to use Adjusted FTE instead.

Salary Adjustment Type in Grade Ladder

Salary Adjustment Type in Grade Ladder

The salary will be prorated using either FTE or Adjusted FTE, depending on the value of the ORA_CMP_USE_AFTE_INSTEAD_FTE profile option, and this logic:

  1. If the profile option value is No, the FTE from the person's assignment will be used to adjust the salary.
  2. If the profile option is Yes, and Adjusted FTE is null or zero, the FTE from the person's assignment will be used to adjust the salary.
  3. If the profile option is Yes, and Adjusted FTE is not null and non-zero, the Adjusted FTE from the person's assignment will be used to adjust the salary.

With this enhancement, FTE adjustments when amounts default from grade ladder rates will be aligned with salary calculations.

Steps to Enable

To configure the profile option to use adjusted FTE instead of FTE, complete these steps in the Setup and Maintenance task:

  1. Search for and click the Manage Administrator Profile Values task.
  2. Search for and select the ORA_CMP_USE_AFTE_INSTEAD_FTE profile optionprofile optionprofile option.
  3. Set the Level to Site.
  4. Set the Profile Value field to Yes.

Tips And Considerations

Here's how the amounts are adjusted. The only thing different with this enhancement is that Adjusted FTE is substituted for FTE when the profile option value is Yes and the Adjusted FTE field is populated on an assignment.

When the salary amount is determined by user:

HR actions prorate the salary amount for FTE according to the salary adjustment type set on the grade ladder. Here's what happens for each salary adjustment type:

If profile option value is No

  • Salary Adjustment Type = FTE less than 1: Salary amount is adjusted only when FTE is less than 1.
  • Salary Adjustment Type = FTE not equal to 1: Salary amount is adjusted when FTE is less than or greater than 1.
  • Salary Adjustment Type = blank: Salary amount isn't adjusted
  • When FTE is 1, salary amount isn't adjusted.

If profile option value is Yes, and the adjusted FTE on a person's assignment has a value that's not NULL and non-zero:

  • Salary Adjustment Type = FTE less than 1: Salary amount is adjusted only when Adjusted FTE is less than 1.
  • Salary Adjustment Type = FTE not equal to 1: Salary amount is adjusted when Adjusted FTE is less than or greater than 1.
  • Salary Adjustment Type = blank: Salary amount isn't adjusted.
  • When Adjusted FTE is 1, salary amount isn't adjusted.

If profile option value is Yes, and Adjusted FTE is NULL or zero:

  • Salary Adjustment Type = FTE less than 1: Salary amount is adjusted only when  FTE is less than 1.
  • Salary Adjustment Type = FTE not equal to 1: Salary amount is adjusted when FTE is less than or greater than 1.
  • Salary Adjustment Type = blank: Salary amount isn't adjusted.
  • When FTE is 1, salary amount isn't adjusted.

When the salary amount is determined by simple components:

HR actions ignore the salary adjustment type selected for the grade ladder. The actions always prorate the progression grade ladder rate component for FTE changes, along with other components.

If profile option value is No:

  • HR actions adjust all component amounts, including the progression grade ladder rate component, when FTE is not equal to 1
  • HR actions don't adjust the component amounts when FTE is 1

If profile option value is Yes, and the adjusted FTE on a person's assignment has a value that's not NULL and non-zero:

  • HR actions adjust all component amounts, including the progression grade ladder rate component, when Adjusted FTE is not equal to 1.
  • HR actions don't adjust the component amounts when Adjusted FTE is 1

If profile option value is Yes, and Adjusted FTE is NULL or zero:

  • HR actions adjust all component amounts, including the progression grade ladder rate component, when FTE is not equal to 1.
  • HR actions don't adjust the component amounts when FTE is 1

Key Resources

For more information about adjusted FTE, see this help:

You can also see these topics in the Implementing Compensation guide:

And you can see these topics in Cloud Customer Connect Documents: