Overview of Compensation Plans
Incentive compensation plans calculate participant earnings based on individual or group production. They include the target incentive and combinations of bonus, commission, and standard plan components. You have two methods for creating plans in the Compensation Plans work area.
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A top-down guided process where you associate existing components or create and automatically associate components as you create the plan
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A bottom-up process where you create components first and then assemble them to create a plan
End date your compensation plans for the fiscal year. You can copy plans for the new year.
After you create your compensation plans, you associate one or more participants with a plan directly or using roles. To prevent conflicts of interest, only participants or participant managers can be assigned to a compensation plan and be compensated. Administrators such as the application administrator, the compensation analyst, the compensation manager, and the compensation plan administrator can make changes to compensation plans and participant assignments, but can't be assigned to a compensation plan themselves.
After assignment, you can further individualize the target incentive and the target incentive percentages for a participant in the Participant Snapshot work area.