1. Using Incentive Compensation
  2. Approve and Accept a Plan

Approve and Accept a Plan

This example shows an incentive compensation plan document approval using both an analyst hierarchy and an HCM hierarchy.

The Setup

The Plan Parameters and Plan Approval Parameters have these settings that affect the approval workflow.

Parameter

Setting

Enable Plan Approval and Acceptance Workflow

Yes

Analyst Approval Hierarchy Levels

2

Supervisor Approval Hierarchy Levels

3

Default Participant Plan Approval status

Ready to publish

Approvals go to two levels in the analyst hierarchy. Here's the hierarchy for this example.

The analyst supervisor is at the top level. Next is the analyst manager who has two analysts. The participant is assigned to Analyst 1.

Analyst hierarchy

The supervisor, or HCM, hierarchy has three levels.

The participant is the salesperson and reports to a manager. Her manager reports to a supervisor, and a director is at the top level.

HCM hierarchy

The Approval Flow

The compensation manager creates a compensation plan and assigns it to the participant ether by role or directly.

  1. Submit the plan for approval.

    • The analyst uses Participant Snapshot > Manage Compensation Plans to submit the plan for approval.

    • The compensation manager goes to Participant Assignments > Manage Plan Document Distribution Requests to create and submit a request. He can filter on compensation plan, analyst, and participant to get a list of participants to include in the request. Their compensation plans approval status must be ready to publish.

  2. The document goes out for approvals. The analyst can withdraw approval as long as the acceptance status of the plan is in progress. If withdrawn, the status returns to the default set in the parameters (Ready to publish in this example).

    • The two levels of the analyst hierarchy approve.

      1. The analyst manager receives a notification and approves.

      2. The analyst supervisor receives notification and approves.

    • The three levels of the HCM supervisor hierarchy approve.

      1. The manager receives a notification and approves.

      2. The supervisor receives notification and approves.

      3. The director receives notification and approves.

  3. After all approvals, the salesperson receives notification and can accept or reject the plan.

Plan approval through both an analyst hierarchy and the supervisor hierarchy