Compensation Management Guide

Transcription

1 Compensation Management Guide Pay Grades Go to Company Settings > HR Setup > Pay Grades a. Code : Enter a code for the pay grade b. Pay Grade : Enter a name for the pay grade c. Description : Enter an optional description of the pay grade d. Active : Check this box to make the pay grade available to assign e. Effective Rate : Enter the pay type, minimum and maximum rates for this pay grade f. Steps : If there are pre-determined steps for this pay grade, the steps can be defined here Save Pay grades can be assigned to jobs under Company Settings > HR Setup > Jobs, or they can be assigned to individual employees under My Employees > Employee Information, in the Pay Information widget on the employee s Main tab.

2 If an employee s compensation is outside of their assigned pay grade, the system can display a warning or error message. A warning will display a message when attempting to save the change. An error will not allow the change to be applied. By default, pay grade violations are treated as Warnings, but this can be edited under Company Settings > Global Setup > Company Setup > HR Tab

3 Compensation Cycles Configuration Go to Company Setup > HR Setup > Compensation Management > Compensation Setup Select Configure the compensation cycle settings a. Name : Enter a name for the compensation cycle (Ex Annual Review) b. Description : Enter an optional description of the cycle c. Company EIN : Displays the selected EIN, if it is a multi-ein company d. Status : By default, this will show as Budget until the cycle s open date. e. Active : Check this box to allow the cycle to be used f. Type : Select the type of compensation that will be updated using this compensation cycle. Currently there is only one option, Base. g. Cycle Manager : Select a manager who is responsible for this cycle h. Pay Change Reason : Select a pay change reason for changes relating to this compensation cycle. i. Workflow : Select the workflow for this cycle. j. Can Exceed Budget : Check this box to allow the cycle to exceed the defined budgets. k. Pay Change Types : Define the pay change types that will be allowed in this cycle (Ex. Merit, Promotion, Job Change)

4 Configure the compensation cycle dates a. Cycle Dates Type : Common Date = all employees receive adjustments at the same time Anniversary Date / Anniversary Month = based on hire date or most recent job start date New Hire / New Job = based on hire date or most recent job start date, but only happens once. b. Open Date : The date when the cycle should begin (when managers should be able to enter proposed pay changes for their employees) c: Close Date : The date when the cycle should end (changes will no longer be allowed) d. Reference Date Type : Select the date that pay changes should be based upon. (Ex. Hire Date) e. Pay Change Effective Date Type : Select the date that pay changes should be applied. Day in Following Month After Reference Date: Allows you to select a specific day of the month following the reference date (Ex. 1st of the month following the Hire Date) End of the Month After Reference Date On Reference Date: Configure the compensation cycle criteria Filter for the employees who should be included in the cycle. If no filters are selected, all employees will be included. Configure the performance reviews settings, if performance review results will affect the compensation amounts.

5 Select a merit matrix for this compensation cycle. If a new merit matrix is needed, click, then click on the Merit Matrix link to create one on the fly. Select Select the number of segments that each performance review rating should be broken into Enter a name for the merit matrix and select Add Ratings Select the ratings that should be included in the merit matrix by clicking the checkboxes to the left of each rating, and clicking Enter % increase amounts for each rating segment

6 Click and then to return to the compensation cycle settings. Add the performance review profile(s) to include in this cycle Select Confirm that the correct employees have been brought into the compensation cycle, based on the filters applied in the Compensation Cycle Criteria widget. Employees can be manually added to the list by selecting Add budget information Select Select to bring in the eligible wages for all employees included in the cycle. Enter an overall budget % or $ Amount for each Pay Change Type entered in the compensation cycle widget. Entering a percentage will automatically fill in the dollar amount, and vice versa.

7 Select This will calculate the budget amount each manager is allotted for their employees, based on the percentage above. Proposing Pay Changes Individual managers budgets can be adjusted by selecting the manager from the list on the left. Note: selecting Update Budget after making a manual adjustment will reset all of the individual manager budgets to the default amount or percent. Individual manager adjustments should be made after all adjustments to the overall budget amounts are complete. Once the compensation cycle is open, Managers can enter proposed pay change amounts for their employees. Go to My Employees > Compensation Management > Worksheet Select the compensation cycle to edit

8 The manager s overall budget for increases will be displayed at the top of the worksheet, and the list of employees assigned to the compensation cycle will be displayed at the bottom. Information about the employee s current pay, pay grades, and performance review scores can be used to determine the increase amounts. Select the icon to view the performance review for that employee. Enter the proposed increase for each employee and select Save. Notes can be entered by selecting the icon next to the employee s name.

9 Proposed pay changes can be submitted for approval individually, or all at once. Select the checkboxes for the pay changes you want to submit, and select Approving and Finalizing Pay Changes Compensation Proposal requests will be listed in the approver s ToDo items. Select the icon to view a comparison between the employee s prior pay rate and proposed pay rate. Select the icon to view the complete proposal worksheet for that employee s manager Select the icon, if applicable, to view any notes provided by the manager Select the icon, if applicable, to view the employee s performance review Once approved, Compensation Proposal requests will be listed in the finalizer s ToDo items. The finalizer will have the ability to override the final amount and effective date upon selecting Finalize, and the compensation amount will update automatically in the employee s profile.