ADP Workforce Now Compensation Management

Transcription

1 ADP WORKFORCE NOW V12 ADP Workforce Now Compensation Management Automatic Data Processing, LLC ES Canada

2 2 Table of Contents Table of Contents... 2 Welcome... 7 Prerequisites... 7 Duration... 7 Course Objectives... 7 Module 1: Introduction to ADP Workforce Now... 8 Additional ADP Workforce Now Modules... 8 ADP Workforce Now Features ADP Workforce Now Features (cont.) ADP Workforce Now Home Page Elements & Descriptions ADP Workforce Now Toolbars Job Aid: Compensation Management Terminology Module 2: ADP Workforce Now Compensation Management Overview Compensation and Compensation Management ADP Workforce Now Compensation Management Implementation Setup Compensation Events The Compensation Event Process Compensation Event Process Stages & Descriptions... 21

3 3 Compensation Event Process Roles & Responsibilities Compensation Event Process Roles & Responsibilities (cont.) Planning a Compensation Event The Compensation Dashboard Job Aid: Elements of the Compensation Dashboard Module 3: Completing a Simple Merit Event The Compensation Event Wizard Job Aid: Compensation Event Wizard Checklist Event Details Event Details (cont.) Budget Settings Select Employees Review Managers Review Managers (cont.) Guideline Settings Guidelines Guidelines (cont.) Summary Summary (cont.) Hands on Practice: Accessing the Compensation Dashboard... 43

4 4 Hands on Practice: Setting Up & Rolling Out the Event Points of No Return Points of No Return (cont.) Making Award Recommendations & Submitting Worksheets Managers & ADP Workforce Now Compensation Management Managers & ADP Workforce Now Compensation Management (cont.) The Compensation Worksheet The Compensation Worksheet (cont.) Job Aid: Emulations Hands on Practice: Making Award Recommendations & Submitting the Worksheet as a Manager The Review Process The Compensation Event Approval Process Job Aid: To Approve the Compensation Event for Payout Job Aid: Managing Conflicts Hands on Practice: Making Award Recommendations, Reviewing & Submitting Worksheets for Approval Hands on Practice: Reviewing & Approving Worksheets Point of No Return: Approving the Event for Payout Closing the Event Closing the Event (cont.)... 69

5 5 Job Aid: Creating a Compensation Notice Template Hands on Practice: Updating Employee Pay Rates Hands on Practice: Creating a Compensation Notice Hands on Practice: Managing & Distributing Compensation Notices Points of No Return Module 4: Completing a Bonus Event Completing a Bonus Compensation Event Adding Compensation Types and Mapping Them to Earnings Codes Job Aid: Creating and Mapping Compensation Types to Earnings Codes Scenario: Incorrect Mapping Hands on Practice: Setting up & rolling out a Bonus Event Hands on Practice: Making Award Recommendations, Approving & Closing the Bonus Event Module 5: Completing a Complex Event Job Aid: Performance Reviews & Compensation Events The Compensation Worksheet: Additional Elements The Compensation Worksheet: Additional Elements (cont.) Compa-ratios Lump Sum Awards Lump Sum Awards (cont.) Top-down Budget... 94

6 6 Top-down Budget (cont.) Hands on Practice: Setting up & Rolling out a Complex Event Hands on Practice: Making Award Recommendations, Approving/Rejecting Recommendations & Submitting Worksheets for a Complex Event Closing a Complex Event Hands on Practice: Closing a Complex Event Module 6: Special Circumstances Employee Transfers One-time Payments One-time Payments (cont.) Module 7: Compensation Management Reporting Manager and Budget Details Report Manager and Budget Details Report (cont.) Worksheet Details Report Custom Reports Module 8: Tools & Resources The ADP Client Service Centre The Bridge The ADP Workforce Now Support Centre

7 7 Welcome ADP Workforce Now gives you a single-entry system that brings together all the tools you need to meet your organizational goals and to improve your bottom line - from HR, Payroll, Time & Attendance, to Recruitment, Performance, and Compensation Management. This course has been designed to provide you with the knowledge and hands on experience you need to be comfortable using the Compensation Management module of ADP Workforce Now. Prerequisites Getting Started with ADP Workforce Now Security Overview for ADP Workforce Now Workflow Management for ADP Workforce Now Payroll for ADP Workforce Now Custom Reporting Basics for ADP Workforce Now Duration This course is 4 hours long. Course Objectives Upon completion of this course, you will be able to: Explain key components associated with ADP Workforce Now Compensation Management. Identify Compensation Management setup requirements Set up, roll out and process a simple merit Compensation Event Set up, roll out and process a bonus Compensation Event Set up, roll out and process a complex merit Compensation Event Identify special circumstances associated with Compensation Events Export built-in Compensation Event reports Generate custom Compensation reports

8 8 Module 1: Introduction to ADP Workforce Now With the rock-solid ADP Payroll platform as its base, this easily expandable and adaptable HCM solution provides industry-leading HR functionality through a modular suite of cohesive services. ADP Compensation Management works in conjunction with many other products and features to create a seamless solution. Examples of modules that integrate directly with Compensation Management are Performance and Payroll. Additional ADP Workforce Now Modules Time & Attendance Timecard information is entered or scheduled in the Time & Attendance module and then sent to Payroll for processing. Example: Timecards have been gathered and approved for processing. The Time & Attendance Practitioner selects the Prepare for Payroll process to initiate the transfer of data to Payroll. Time & Attendance data joins the Payroll data at the Verify Payroll stage and appears on preview and process reports. Once the Payroll is processed, payments are made to employees. Time Off ADP Workforce Now allows time off information to be entered once and visible in both the Payroll and Time Off sections of ADP Workforce Now. The two modules also have a direct feed so that Time information feeds directly into Payroll. Example: An employee is entitled to two weeks of vacation. An employee requests one week of vacation through the employee self-service request feature. The time off request is approved and the vacation is automatically paid out through Payroll on the required dates.

9 9 Human Resources With configurable workflows, online records and intelligent reporting you can reduce the time spent on paperwork, and increase the time dedicated to managing and transforming your people the lifeblood of your organization s success. Enter personnel information once and all modules link to that information. Example: Sally Hodgen is hired as a salaried employee and needs to be paid. Sally's name automatically appears in Payroll due to the integration with the HR module. A one-time pay adjustment may be needed if the employee starts mid pay period. Benefits Further optimize your investments in HR and Payroll with ADP s benefits administration module. Use the simple interface to create eligibility rules and make online enrolment available to employees. Manage your benefits budget by easily monitoring billing discrepancies to help stop premium overages. Talent With a solid recruiting strategy, branded career sites and intuitive dashboards, you can make hiring decisions in a snap. Create a pay for performance culture by aligning employee s goals to those of your organization and tracking progress. Spot trends and identify candidates for career growth. Analytics Get actionable, trusted insights powered by ADP DataCloud. Access an array of key metrics - from absence rates to turnover rates aligned with the most current Human Capital Management (HCM) best practices, plus customizable filters and views for virtually limitless analysis options that are as easy to use as consumer apps. Analytics from ADP enables you to spot workforce trends and diagnose issues quickly and easily.

10 10 ADP Workforce Now Features Mobile The free ADP app has an elegant interface that provides you and your employees with access to HR, time, benefits and Payroll- related data anytime, anywhere. Features a simple, informative design for employees, Managers, and business executives Accessible from smartphones and tablets* Empowers employees to remotely perform self-service tasks such as clock in and clock out, view pay statements, T4s, time-off balances, and benefits plan information, including employee and employer premium contributions Enables Managers to view and approve timesheets and time-off requests online Cloud-Based Document Storage Go green and harness the power of ADP Document Cloud for fast, simple and secure access to employee digital documents. With its advanced search functions, permission-based file sharing and detailed audit reporting, you can easily ensure the right people have the right access to information when and where they need it. Acquire the added protection of encrypted files role based security, auditing, full back-up, and disaster recovery for your electronic documents which is much more secure than loose paper files Security The Security feature provides Practitioners with the ability to create security at: Menu level: Practitioners can specify which menus and submenus for which each profile has view and/or edit privileges. Person and company level: Where personal level access is granted. Example: The Payroll Supervisor is responsible for opening the Pay Cycle, reviewing the preview reports for accuracy and then processing the Payroll once validated. Create a custom Practitioners profile that provides access to the menu options for opening a Pay Cycle, previewing reports and processing Payroll.

11 11 ADP Workforce Now Features (cont.) Effective Dating The Effective Dating feature allows you to identify when a task will take place, today or in the future. Future-dated entries remain in ADP Workforce Now until the date entered falls within the Payroll period dates. Example: Annual raise amounts have been confirmed for all associates in the company. The Payroll administrator has decided to be proactive and key the entries in advance with a date in the future. The entries will not take effect until the effective date falls within the Payroll period dates. Workflow Management Workflows can be designed to create a notification or an approval process when specific changes are made. When a change is made, the workflow is triggered and a notification or an approval request goes to the recipient's message center for review. Example: Using the example of a raise, Sally (Manager) enters a raise into the system for Jacob (employee). A workflow is then triggered sending a notification to Sally's Manager with an approval request to Brenda in HR. The item must be approved by Brenda before the change is processed in Payroll.

12 12 ADP Workforce Now Home Page Elements & Descriptions Home Page Elements Icon Name Description Mega Menu Sub Menu Support link Log Out link The mega menus appear differently based upon the employee's menu security access. Each mega menu contains a sub menu, providing users with additional activities from which to select. Access Learning Bytes, online help and additional training documents. Use this link to log out of ADP Workforce Now securely. Preferences Message Centre Calendar My Profile Search People Menu Process Menu Change your preferred language, Message Centre preferences, contact info, password and security questions. Workflows trigger automatic messages to the Message Centre. You can view notifications, or edit/approve changes from the Message Centre. Click this icon to display the Calendar. Holds an employee's contact information. Search for: People, Activities, Reports or a Directory. Access employee-level information such as Pay details, Personal Information, Employment Information, Benefits Information, and Statutory Compliance. Access tasks such as Payroll Cycle activities, Utilities (Importing/Exporting), Benefits, Tools, Workflows, Time & Attendance, HR, Time Off, Talent and Year End.

13 13 ADP Workforce Now Toolbars Some icons are common to all toolbars, whereas others fields differ based on the menu they appear in. The following chart displays the common elements found on all toolbars: Toolbars Icon Name Description Help Icon Search Scrolling Search Action Icon The Help icon appears at the page and field level. Page Level Help: Provides help regarding all fields on the current page. Field Level Help: Provides specifics regarding the current field. The Magnifying Glass is found at both company level and the employee level. Company Level: When located on a company level page the window displays a list of all companies listed within a client ID. Employee Level: When located on an employee level page, the window displays a list of all employees in the selected company code. Note: The list of employees displayed is determined by the filter selected. These icons appear at both the company and employee levels. Company Level: When selected, toggles between companies. Employee Level: When selected, toggles between employees. This icon appears in the all toolbars on all pages. It provides you with access a variety of other options or pages based on the page it appears on.

14 14 Job Aid: Compensation Management Terminology Key Terms and Definitions or Descriptions Term Compensation Job Design Job Evaluation Compa-ratio Compensation Event Compensation Dashboard Compensation Event Wizard Compensation Event Timeline Compensation Worksheet Definition/Description A process organizations use to reward employees for the work they perform. The process of organizing work as group of tasks, arranging and defining the job process and structure at the workplace depending on the job analysis performed. The methods and practices of ordering jobs or positions with respect to their value or worth to the organization. A compa-ratio (short for comparative ratio ) is a formula commonly used to assess the competitiveness of an employee s pay level. A compa-ratio is the ratio of an employee s actual salary (the numerator) to the midpoint of the applicable (the denominator) salary range. To calculate an individual s compa-ratio, divide their salary by the midpoint of the assigned salary range. An occasion when a company grants its employees monetary rewards in the form of either a base pay increase, or a one-time payment award. Provides information for all compensation activities, and is the key starting point for users to complete most compensation-related tasks. Starting Point: Practitioner: Process > Talent > Compensation Dashboard Manager: My Team > Talent > Compensation Dashboard An easy to use tool that helps Practitioners setup and rollout a Compensation Event. Each Compensation Event has an associated timeline that includes a Review Period, Recommendation Period, Cut-Off Date, and Effective Date. A Compensation Worksheet is generated when an event is rolled out. Managers use the Compensation Worksheet to apply performance ratings and award recommendations for their direct reports. Practitioners and Event Approvers access the Compensation Worksheet to approve/reject recommendations and track event progress and status information.

15 15 Key Terms and Definitions or Descriptions Term Conflicts Definition/Description Conflicts occur when the Compensation change that the Practitioner is trying to process, coincides or clashes with some other activity, such as a hire/rehire date change, if that other activity occurred after the cut-off date, but during the recommendation period. Conflicts must be resolved for the Compensation Event to be processed in ADP Workforce Now Payroll.

16 16 Module 2: ADP Workforce Now Compensation Management Overview Compensation and Compensation Management Compensation is a process organizations use to reward employees for the work they perform. There are different types of compensation including base pay, sales commission, bonus, profit sharing, stocks, or other non-cash taxable items. Compensation Management is the practice of rewarding the right people to the greatest extent for the most relevant reasons. An organization s competitiveness is driven through its people ( talent ). Organizations use Compensation Management to attract, retain, develop, and motivate their people. Compensation Managers are responsible for: Job design and evaluation Identifying and maintaining competitive wages and salary grades Designing and implementing compensation-related policies and programs, including: o Annual, merit, and across-the-board increases o Bonuses and other one-time payments o Incentive and reward programs ADP Workforce Now Compensation Management ADP Workforce Now Compensation Management is part of the ADP Workforce Now Talent Management module. It is used by Compensation Managers as part of a complete Human Capital Management (HCM) solution that includes HR and Payroll. ADP Workforce Now Compensation Management helps you drive a Performance culture. It allows you to: Manage multiple award types, such as merit, bonus, and adjustments. Tie employee s performance to the rewards process. Define budgetary guidelines in compliance with your company policies. Define a hierarchy based approval process (using a Workflow). Generate customized Compensation Notices to communicate the good news to your employees. ADP Workforce Now Compensation Management ensures that every Compensation Event flow seamlessly from Performance to Payroll.

17 17 Implementation Setup ADP Workforce Now Compensation Management requires the following data to be complete in your ADP Workforce Now database: Employee name, job title, salary/pay rates, Job information Reports-to information Earnings codes Employee self service Manager self service Practitioner rights Manager rights Approval workflow Rating scales Compensation types (created and mapped to appropriate earnings code) Compensation change reasons Security and access permissions ADP Human Capital Management Consultants (HCMC) assist you with your setup during Implementation. Preliminary Setup If Then You Need To Starting Point A Compensation Event must be approved by higher level management before updating pay rates A Rating Scale is used to define guidelines for making award recommendations To set up a merit event that includes lump sum payments Define an Approval Workflow in ADP Workforce Now Setup the Rating Scale 1. Setup the Lump Sum Compensation Type 2. Map the Lump Sum Compensation Type to the appropriate Earnings Code 1. Setup > Approval Process > Approval Paths 2. Setup > Approval Process > Activity Configuration Setup > HR & Talent > Rating Scales Setup > HR & Talent > Compensation Types

18 18 Preliminary Setup If Then You Need To Starting Point To set up a bonus event A base pay increase merit event is associated with a reason for the compensation change Managers will be making award recommendations A Compensation Event uses pay grades to calculate employees compa-ratio 1. Setup the Bonus Compensation Type 2. Map the Bonus Compensation Type to appropriate Earnings Code Set up the Compensation Change Reasons Assign a Compensation Change Reason to an event Ensure that a Manager is assigned to each employee included in the event Ensure Managers have access to the employees included in the event 1. Set up pay grades 2. Assign pay grades to job titles Setup > HR & Talent > Compensation Types Setup > Tools > Validation Tables People > Employment > Employment Profile > Reports To field under Position tile Setup > Security > Access Permissions Setup > Tools > Validation Tables

19 19 Compensation Events A Compensation Event is an occasion when a company grants its employees monetary rewards in the form of either a base pay increase or a one-time payment award. Compensation Event Types & Descriptions Types of Compensation Events & Descriptions Type Merit Increase Across-the-board Increase Cost-of-living Adjustment Bonus Lump Sum Description A pay increase tied to employee performance. Many organizations conduct merit increase programs on an annual basis; but may do so more or less frequently. The process organizations follow to evaluate performance and tie it to pay increase varies from organization to organization. A uniform rate increase granted to all employees or groups of employees in the organization. A rate increase tied to changes in the cost of living (COL). Many employers use the federal government s COL indices to determine the amount. This increase can be applied acrossthe-board or to a specific group of employees in an organization. A bonus is a one-time payment awarded to eligible employees based on the criteria established by the organizations. Frequently, payments are part of an ongoing incentive programs that reward employees on a periodic basis. Lump sum awards are one-time awards used to reward employees who are not eligible for a merit increase yet their performance warrants an award. Regardless of the type of Compensation Event, events can be further classified as simple or complex. A simple event is one type of event setup and processed by itself. For example, an annual merit event for all employees across the organization. A complex event is a combination of simple events processed as one event. For example, an annual merit increase for all employees across the organization and employees above their salary pay grade are also awarded a one-time payment. Simple or complex, events follow the same six stage process; however the processing of payroll is slightly different.

20 20 The Compensation Event Process A Compensation Event consists of six stages, involving four organizational roles. The process ensures that a Compensation Event is set up properly for the right group of employees. It has various approval stages to ensure compensation recommendations are awarded appropriately.

21 21 Compensation Event Process Stages & Descriptions Compensation Event Stages & Descriptions Stage Description 1 You set up the Compensation Event and, when ready, roll it out to Managers to begin making award recommendations. 2 The Managers responsible for awarding compensation use the Compensation Worksheet to make award recommendations for their direct reports. They submit their recommendations to higher-level for approval (as defined using the Workflows). 3 The next higher level (Manager s Manager) makes award recommendations for their own direct reports and approves/rejects the recommendations submitted by the Manager. Notes: If the Manager s Manager rejects the Manager s recommendations, the Worksheet goes back to the Manager to review and re-submit the Worksheet. The Manager s Manager may be making recommendations for their own direct reports. All recommendations have to be approved by the Manager s Manager prior to submitting the Worksheets for next higher level approval. This is an optional stage if required per your company setup. 4 The next higher level (Practitioner) reviews all submitted Worksheets, resolves any conflicts identified in the application, and submits the final recommendations to the Approving Authority. 5 The Approving Authority reviews all submitted recommendations and approves or rejects the Compensation Event. If approved, the event is Ready for Payroll Processing. You receive a message notification through the Message Center that the event is ready for payroll processing. If rejected, you receive a notification that the Compensation Event requires additional review before it can be submitted again. 6 Close the Compensation Event by processing the payments and generating and distributing Compensation Notices to employees informing them of the pay changes.

22 22 Compensation Event Process Roles & Responsibilities Compensation Event Process Roles & Responsibilities Role Approving Authority (Example: Susan Dearborne) Practitioner (Example: Donald East) Manager s Manager (VP or Director) (Example: Anthony Albright) Responsibility The person in the company who has financial authority to assign a budget and approve a Compensation Event by identifying its financial impact. The Approving Authority might be the Vice President of Human Resources, the CEO, or the division head, for instance. You, as the Practitioner, allocate the budget to all Managers responsible for awarding Compensation. You submit all Compensation recommendations to the Approving Authority for final approval. The Manager s Manager is the next level up Manager, from the lowest level Manager, awarding recommendations for their direct reports and also approves/rejects the lowest level Managers recommendations. Manager (Example: Samuel Barbato) Note: Actual job titles may differ from company to company. The Manager is the lowest level Manager responsible for awarding Compensation to direct reports. Note: To verify a Manager you go to: People -> Employment -> Employment Profile. Under the Position heading the field titled Management Position should say Yes.

23 23 Compensation Event Process Roles & Responsibilities (cont.)

24 24 Planning a Compensation Event Before you setup your event, gather all the information you require such as the type of event, timelines for the event, who will be included in the event, what is the budget, and so on. Below is the list of questions that must be determined prior to setting up an event: Planning a Compensation Event Questions What type of Compensation Event are you implementing? Notes Do you use salary/pay grades and red or green circle rates? Do you give lump sum payments in addition to, or in lieu of salary increases? Do you pro-rate award amounts? Will the event require approval? If so, by whom? What is the applicable review period for which the increase or payment is being awarded?

25 25 Planning a Compensation Event Questions What recommendation period you want to establish for the event? Notes What budgetary parameters, if any, do you use? For example: Do you use bottom up or top down budgeting or no budget at all? Will you allocate specified budgets to different employee or organizational groups? What employees are to be included in the event, all employees, one or more groups of employees, and so on? Are the HR Practitioners responsible for setting up and managing the Compensation Event/s have the rights and permissions they need? Do the Managers have the access they need to make, submit, reject and approve recommendations for their direct or indirect reports? Do you use ADP Workforce Now Performance? If so, will you tie employee performance reviews to the Compensation Event? If so, do you have performance review

26 26 Planning a Compensation Event Questions information in ADP Workforce Now? If not, will you apply ratings to appropriate award amounts? Notes Do you provide guidelines to Managers on how to distribute reward amounts? If so, what are those guidelines? Will the same ratings and guidelines apply to all employees? If not, how many different rating scales and corresponding budgetary guidelines do you plan to use? Will you have multiple compensation events? If so, will you need different rating scales for each event?

27 27 The Compensation Dashboard The Compensation Dashboard provides information for all compensation activities, and is the key starting point for you to complete most of your compensation-related tasks. Starting Point: Practitioner: Process > Talent > Compensation Dashboard Manager: My Team > Talent > Compensation Dashboard

28 28 Job Aid: Elements of the Compensation Dashboard Key elements of the Compensation Dashboard and descriptions are listed below: Elements of the Compensation Dashboard Element Active Events Historical Events Compensation Event Details Start and End Dates Progress Bar Budget Bar Status Description View all Active events. View all historical events. Name/Title of the event. Details illustrate the relationship of the event to its assigned budget. The legend at the bottom right-hand side corner identifies what each symbol means. The recommendation period for the event. Indicates the progress of the event related to the number of Worksheets submitted thus far. Click the down arrow to open a window that provides additional information about the progress. Indicates how the event is matching up against the budget, for example: Blue means the event is under budget; Red means over budget, and so on. Click the down arrow to open a window that provides budget details, such as budget used, budget allocated, and budget utilization, expressed as a percentage. Provides a status of the event, such as setup completed, rolled out, ready for payroll processing, and so on. Note: Action Add Button Delete Button The Status Timeline at the bottom shows you where the event falls within the timeline. Click the Action arrow to select additional tasks you can perform for an event. Click Add to access the Compensation Event wizard. Click in the check box next to an event then click Delete to delete an event.

29 29 Module 3: Completing a Simple Merit Event In this module, you are going to follow a six stage process to complete an end-to-end merit Compensation Event. In Stage 1, you setup and rollout the event using the Compensation Event wizard. The Compensation Event Wizard The Compensation Event wizard is a series of tasks designed to guide you to setup and rollout a Compensation Event. This easy to use wizard allows you to setup the event with all the required details that serve as guidelines for Managers to work with when making award recommendations.

30 30 Job Aid: Compensation Event Wizard Checklist Use the table below to take notes. Later, you can use this as a job aid when you set up Compensation Events. Compensation Event Wizard Checklist Step Description Notes 1 Event Details Enter event name and description. Select compensation type and compensation change reason. Depending on the type of event, select pay grades and appropriate award proration method. Select options to send notifications and approval requirements. Enter appropriate dates for the event. 2 Budget Settings Select the type of budget that will be used for the event. 3 Select Employees Select the employees to be included in the event. 4 Review Managers Review the Managers included in the event. Exclude any Managers who do not need to be included in the event. Allocate budget dollars assigned to all included Managers. 5 Guidelines Settings Select appropriate guideline method for making award recommendations depending on whether the event will use performance reviews, rating scales, or neither.

31 31 Compensation Event Wizard Checklist Step Action Notes 6 Guidelines Define the parameters or rules that apply to the performance rating or a rating scale, as determined in Guideline Settings step. 7 Summary Review the details that you defined for the event, make needed modifications, and roll out the event.

32 32 Event Details The Event Details page allows you to enter event name and description. In the general settings section, select Compensation Type and Compensation Change Reason for your event. Depending on the type of event, you select pay grades and appropriate award proration method. You also select options to send notifications and determine approval requirements. Compensation Event Timeline Each Compensation Event has an associated timeline that includes a: Review Period Recommendation Period Cut-Off Date Effective Date The table below outlines each component of the Compensation Event timeline: Compensation Event Timeline Dates, Descriptions, and Examples Date Description Examples Review Period Period of time during which employees performance is reviewed in preparation for a Compensation Event. Go Green 100 employees performance review is based on the established period of March 1 of the past year to February 28 of the current year.

33 33 Compensation Event Timeline Dates, Descriptions, and Examples Date Description Examples Recommendation Period Period of time in which Managers can make compensation recommendations (using Compensation Worksheets). After completing performance reviews, Managers have from March to make award recommendations. Cut-Off Date Effective Date The date on which a snapshot of the database is taken for compensation purposes. Any changes made after the cut-off date are not considered for this event. Note: The database defaults to the Recommendation Period Start Date. However, the cut-off can occur after that date. The date on which new compensation is effective. The Recommendation Start Date is the earliest date that you can roll out the event to your Managers. Go Green 100 sets the cut-off date on the same day as the Recommendation Period Start Date, March 15. Go Green 100 s Effective Date is April 15.

34 34 Event Details (cont.) Guidelines and Best Practices to Establish Compensation Event Timeline Dates Follow the guidelines listed below when establishing dates for a Compensation Event. If you change the Recommendation Period Start Date before rolling out the event to Managers, you must also change the Cut-Off Date. It will not automatically update. Best Practice: Set the Cut-Off Date and the Recommendation Period Start Date to the same date. Any changes made to employee records after the Cut-Off Date may result in conflicts in the event during the final recommendations stage. ADP Workforce Now applies pay increases to the start of the pay period in which the Effective Date falls. When the Effective Date of pay increase is after the payperiod start date, the first pay-cheque reflects the higher rate of pay as of the pay-period start date. Therefore, you may need to make pay adjustments. Best Practice: Align the compensation effective date and the pay period start date. Otherwise, you have to manually adjust employees' pay for that first period to account for the difference in pay between the pay period start date and the effective date of pay increase. If you use ADP Workforce Now Performance, the Review Period defined for the Compensation Event must align to the review period for the associated performance policy in order for Performance and Compensation to work together.

35 35 Budget Settings Apply one of the following two budget options to a Compensation Event, or apply no budget at all. Budget Options & Descriptions Budget Bottom-Up Description The organization obtains award recommendations from the Managers to form a budget estimate. If you select the bottom-up budget option, ADP Workforce Now Compensation Management provides you an estimate for the Compensation Event, based on the specified target award that is either a percentage of employees salaries or a stated dollar amount per employee. Top-Down A company officer (higher level management) defines the budget and allocates dollars throughout the organization. Note: With the top-down budget approach, you can only allocate budget amounts on the basis of dollars, not percentages. However, you can define event guidelines (targets, recommended, and allowed amounts) using dollar amounts or percentages. In addition, Managers can enter award recommendations using percentages. Notes: You cannot use bottom-up and top-down budget methods for the same event. If you want to do so, create two events: Event 1: use the bottom-up method to estimate a budget that will then be allocated to Managers in Event 2. Organizations commonly use top-down budgeting.

36 36 Select Employees Set up the employee selection criteria using Add Eligible Employees window to include employees in your event. You can build your own list, use an existing list, or search for employees in an alphabetical order. The information in the table below is an example used to define the employee population for an event. Employee Search Options and Descriptions Option Description Example Build Employee List or Select Saved List From Alphabetical List Build an employee list using ADP Workforce Now defined lists. Build an employee list using a system-defined list and/or criteria, such as company code, job title, location, and so on. Select a saved list that you created in ADP Workforce Now. Select employees from an alphabetical list. <all employees> <status is active> Status = Active Location = Toronto Select any of the lists that you created in Manage My Lists. Select individual employees eligible for the bonus event alphabetically, by last name.

37 37 Review Managers Based on the employees selected for the event, ADP Workforce Now Compensation Management identifies Managers to include in the event. Each Manager included in the event makes award recommendations for their direct reports and reviews the recommendations made by their subordinate Managers. The Review Managers step of the wizard has two crucial components of the Compensation Event setup: Reviewing the management structure through which budget amounts are allocated and through which the Worksheets flow. Allocating budget amounts for the event (for events that use Top-down budgeting). To view the Managers assigned for an event, select one of the following: Most Senior Managers in the event All Managers

38 38 Review Managers (cont.) Review the following elements of this page: Review Manager s Page Elements & Descriptions Element Information Message Notes Review Level field Recommendation Summary link Event Budget Details section: System Estimated field Allocated for this Event field Distributed to Managers field Held in Reserve/Available field Note: ADP Workforce Now Compensation Management uses existing Reports To relationships, as of the event Cut-Off date, to identify Managers and include them in the Compensation Event. Therefore, it is imperative that these be established accurately in ADP Workforce Now.

39 39 Guideline Settings Select the performance policy (if you use ADP Workforce Now Performance) or a rating scale to setup award guidelines for your event. Guidelines Define award guidelines (as percentage or dollar values) for Managers to follow when making recommendations. Example The merit award guidelines for an employee with a performance rating of Meets Expectations are as follows: Target: 3% Recommended range: 1% 4% Allowed range: 0% 5%

40 40 Guidelines (cont.) Use the table below to determine award guidelines when setting up your Compensation Events: Award Guidelines & Descriptions Award Guideline Target Recommended Allowed Description The average percentage or dollar amount that Managers should target for the aggregate of employees with the rating. The target amount must be within the recommended range. The percentage or dollar range that the organization defines as appropriate for employees with the rating. The minimum recommended amount must be greater than the minimum allowed amount. The maximum recommended amount must be less than the maximum allowed amount. The minimum and maximum percentage or dollar amounts that Managers can recommend for employees with the rating. The minimum amount must be less than the minimum recommended amount. The maximum amount must be greater than the maximum recommended amount. Notes: When applying guidelines to an event, you can define them using any one guideline or a combination of guidelines. For example, you select Target only for each rating or Target and Recommended, and so on. If you want to provide Managers with a guideline of no increase for any rating, you need to enter zeroes in the Target, Recommended, and Allowed fields. If you do not enter anything in those fields, no guidelines will be applied.

41 41 Summary Review all the event setup information you entered in the previous pages of the wizard. If changes are required, use the Previous button or the blue title at the top to navigate to the page where changes are required. When done, come back to the Summary page to roll out the event.

42 42 Summary (cont.) Follow the guidelines below when reviewing the setup information to rollout the event: Review Setup Information and Rollout the Event If the Event Is Set up correctly Not set up correctly And the Recommendation Start Date Is Today or earlier A date in the future Then 1. Click Done. Result: The Confirm Action window opens, and you are asked to confirm whether you are ready to roll out the event. 2. Click Yes. Result: The event is displayed on the Compensation Dashboard with a status of Rolled Out. 1. Click Done. Result: The event is displayed on the Compensation Dashboard with a status of Setup Complete. 2. On the appointed date, you need to roll out the event. 1. Return to the step that requires editing. 2. Make the necessary edits. 3. Continue with the process until you complete the setup. Note: Only users who have full access to the entire ADP Workforce Now database can rollout a Compensation Event. The security and access permissions differ for each user role. You must ensure that the users responsible to setup and rollout Compensation Events have appropriate Universal Access rights.

43 43 Hands on Practice: Accessing the Compensation Dashboard Using the login information provided by your Instructor, log in to the ADP Workforce Now database and navigate to the Compensation Event Dashboard. Starting Point: URL > Admin Login > User ID and Password Accessing the Compensation Dashboard Step Action 1 From the Home Page, click Process. 2 Next, click Talent and then click Compensation Dashboard. Hands on Practice: Setting Up & Rolling Out the Event You are going to set up the annual merit Compensation Event for subsidiary of Go Green, the Go Green 100, using ADP Workforce Now Compensation Management. Go Green prorates awards for employees based on their hire date. Review Period: Recommendation Period: Cut-Off Date: Effective Date: Starting Point: Process > Talent > Compensation Dashboard Setting Up & Rolling Out the Event Step Action 1 Click (ADD). 2 In the Event Name field, click the down arrow beside Edit Name; select English (CA) from the displayed list. In the Name field, enter Go Green 100 Annual Merit. Note: If you click Edit Name, an error message displays. Always, click the down arrow beside Edit Name to enter the name for the event.

44 44 Setting Up & Rolling Out the Event Step Action 3 Complete the General Settings section, as follows: In the Compensation Type field, select Base Pay. Result: The Compensation Change Reason field is displayed. In the Compensation Change Reason field, select MER - Merit. Select Allow awards to be prorated for the defined review period and Prorate awards based on employee s hire/rehire Date. Select Send event rollout notification to Managers. Clear the check box for Require this event to be approved before processing payroll. 4 Complete the Review Period section, as follows: In the Start Date field, enter the date provided. In the End Date field, enter the date provided. 5 Complete the Recommendation Period section, as follows: In the Recommendation Period Start Date field, enter the date provided. In the Recommendation Period End Date field, enter the date provided. Result: The Cut-Off Date defaults to the Recommendation Period start date. Accept the default in the Cut-Off Date field. In the Effective Date field, enter the date provided. 6 Click Save and Exit. Result: The success message is displayed and you go back to the Dashboard. If your application times out before you complete the Compensation Event wizard steps and you do not click Save and Exit, you will lose your work. 7 Click the event name Go Green 100 Annual Merit link on the Compensation Dashboard. Result: The Event Details page displays. 8 Click Next. Result: The Budget Settings page displays. 9 Accept the default selection Bottom-Up Budgeting.

45 45 Setting Up & Rolling Out the Event Step Action 10 In the Estimate the Budget Based On Percent of the Base Pay for All Eligible Employees field, enter Click Next. Result: The Select Employees page displays. 12 This event includes active employees of Go Green 100 reporting to Samuel Barbato. Click Add Employees. 13 In the Add Eligible Employees window, accept the default selection of Build Employee List or Select Saved List and then click Continue. 14 The Advanced Rule Builder window opens. In the Select List field, select Status Is Active from the dropdown list. 15 Click Add Criteria to This Set. In the AND/OR field, select And. In the Filter Options fields, make the following selections: Field Name: Company Code Comparison: Is Equal To Field Value: Go Green 100 Add an additional criteria to this set as follows: Click Add Criteria to This Set. In the AND/OR field, select And. In the Filter Options fields, make the following selections: Field Name: Reports To Comparison: Is Equal To Field Value: Barbato, Samuel Click OK. Result: The list of employees included in the event is displayed. 16 Click Next. Result: The Review Managers page is displayed. 17 Review the sections of the Review Managers page for your event.

46 46 Setting Up & Rolling Out the Event Step Action Note: Managers can be excluded from the event if they do not have to make award recommendations. To exclude one or more Managers, select the Manager/s by clicking in the check box to the left of his/her name/s. Then, click the Exclude button. A red X is displayed beside each excluded Managers' name. 18 Click Next. Result: The Guidelines Settings page is displayed. 19 The Go Green 100 Annual Merit event is associated with the Annual Merit Review rating scale, defining guidelines as a percentage of employees salaries. Select Use a Rating Scale to define award guidelines. 20 In the Rating Scale field, select Annual Merit Review Scale. 21 In Define Guidelines as section, accept the default selection of Percentage. 22 Click Next. Result: The Guidelines page is displayed. 23 Enter the guidelines as indicated in the table below: Rating Guideline Award Exceeds Expectations Target 3% Recommended 1.5% 3.5% Allowed 1% 4% Performs as Expected Target 2% Recommended 1% 3% Allowed 0% 4% Needs Improvement Target 1% 24 Click Next. Result: The Summary page is displayed. 25 Review the event summary information. Recommended 0.5% 1.5% Allowed 0% 2%

47 47 Setting Up & Rolling Out the Event Step Action 26 Click Done. Result: The Confirm Action window opens, and you are asked to confirm whether you are ready to roll out the event. 27 Click Yes. Result: The event is displayed on the Compensation Dashboard with a status of Rolled Out.

48 48 Points of No Return In the ADP Workforce Now Compensation Event process, once you pass certain points, there is no going back, which means you are unable to go back to make any changes to the event. The graphic here illustrates these key points of no return.

49 49 Points of No Return (cont.) You have reached the first point of no return for your event Go Green 100 Annual Merit. You already rolled out the event, so you can no longer make changes to it. If you find a problem or issue with the event you just rolled out, take the following actions: 1. Copy the rolled-out event and correct the problem or issue in the copied event. 2. Terminate the original event and move it to the Historical Events tab in the Compensation Dashboard. 3. Roll out the copied, corrected event. Best Practice: Do not rollout an event until the start of the Recommendation Period. You can create the event and save your work using the Save and Exit button in the Compensation Event wizard at any time. This way you can come back and make additions or changes to the event as many times as needed to complete the event setup and ensure it is correct before rolling it out.

50 50 Making Award Recommendations & Submitting Worksheets The event is ready for Managers to begin making award recommendations using the Compensation Worksheet. Managers are notified about the event rollout through the Message Center, if that option was selected during event setup. Otherwise, you have to manually inform the Managers.

51 51 Managers & ADP Workforce Now Compensation Management The Managers can access the Message Center notification in two ways: 1. As soon as they login, the message displays on the screen. 2. Managers click the Message icon from the top, which opens a message window. Note: You may receive a duplicate message center notification, especially if you are a higher level Manager and/or an event approver assigned to work on the event. Delete or ignore one of the two messages. The graphic below shows an example of a duplicate message.

52 52 Managers & ADP Workforce Now Compensation Management (cont.) To begin making award recommendations, Managers can access the Compensation Event in one of two ways: 1. Click on the Action ( ) icon in the Message Center. 2. Navigate to My Team > Talent > Compensation Dashboard.

53 53 The Compensation Worksheet Managers view the list of all Compensation Events assigned to them. They access the Compensation Worksheet using the Action arrow for the assigned event and begin making award recommendations for their direct reports. Key elements of the Compensation Worksheet and their descriptions are as follows: Compensation Worksheet Elements and Descriptions Element Event Header Worksheet Header Worksheet Profile Description Provides details, such as the Event Name, Progress & Budget bars Review and Recommendation Periods, Effective Date, and access to the View Detailed Progress page. The Select Worksheet field displays the highest level event approver by default. You select the owner of the Worksheet using the down arrow. Depending on the selection, you can view only the Worksheet owners direct reports (Assigned Award Recipients) or All Eligible Employees who are participating in the event. To further define the list of employees, use View Employee Filters options. The Worksheet displays employees included in the event. It is in this section that Managers make award recommendations and higher-level Managers can view Subordinate Manager's recommendations, depending on the option they select under Select Worksheet field. Includes employee profile information, such as job title, position start date, home department, associate ID, position ID, and other details. When you click the graph icon beside Salary History, a window displays showing the employee s salary history graphically. You can hover over points in the graph to see details.

54 54 Compensation Worksheet Elements and Descriptions Element Award Calculator Description Managers use the Award Calculator to explore different award amounts. It provides information about the award guidelines established during setup.

55 55 The Compensation Worksheet (cont.) Sample Compensation Worksheet

56 56 Job Aid: Emulations If you do not use Manager self service or do not want Managers to enter their own recommendations, then ADP Workforce Now Compensation Management provides you with an option to make recommendations on behalf of the Managers. This option is called emulation. By using emulation, you can complete, submit, and approve Worksheets as if you were the Manager. To Emulate a Manager To enter recommendations on behalf of a Manager follow the steps below: Starting Point: Process > Talent > Compensation Dashboard Emulation Steps Step Action 1 In the row for Go Green 100 Annual Merit, click (Action) and select Access Worksheet. 2 In the Select Worksheet field, click Go Green 100 Annual Merit to display the list and then select <Manager Name> you wish to emulate. Note: If the list doesn t display, click the sign beside the event name and the Manager names until you find your desired Manager. 3 Click (Action) and select Emulate Worksheet Owner. 4 A Confirm Action window displays. Click Yes to proceed. Result: You are emulating the <Manager>. To Stop Emulation From the Compensation Worksheet: Click the Submit Worksheet button. This brings you to the Compensation Dashboard and emulation stops automatically. Click the Action arrow beside Select Worksheet field and then select Stop Worksheet Emulation. From the Compensation Dashboard: Select the Action arrow and then click Manage Emulation Rights option.

57 57 Hands on Practice: Making Award Recommendations & Submitting the Worksheet as a Manager Go Green 100 s Manager, Samuel Barbato, wants to award recommendations for his direct reports as follows: Samuel's Direct Reports Peter Biggins Edward Bonner Albert Delaney Carlo Garland Bradley Thomas Performance Rating to be Awarded Performs as Expected Exceeds Expectations Performs as Expected Performs as Expected Performs as Expected Using the credentials provided to you, make award recommendations on behalf of Samuel and submit the Worksheet. Starting Point: Process > Talent > Compensation Dashboard Making Award Recommendations & Submitting the Worksheet as a Manager Step Action 1 In the row for Go Green 100 Annual Merit, click (Action) and select Access Worksheet. 2 In the Select Worksheet field, click Go Green 100 Annual Merit to display the list and then select Samuel Barbato. Note: If the list doesn t display, click the sign beside the event name and the Manager names until you find your desired Manager. 3 Click (Action) and select Emulate Worksheet Owner. Result: A Confirm Action window displays. 4 Click Yes to proceed. 5 Select the performance rating for each employee, as indicated in the table above. Note: If you selected to have awards auto-populated, the target awards will be displayed in the % Award fields for each employee. If the values don't autopopulate or you change the ratings, then you have to manually enter them. 6 Change the values in the Award % field for Albert Delaney as instructed by your Trainer and notice the changes.

58 58 Making Award Recommendations & Submitting the Worksheet as a Manager Step Action 7 Change Peter Biggins award recommendation. In the % Award field, enter Press the tab key. Result: Peter Biggins award amount recalculates to reflect a 2.75% increase. 8 Click Submit Worksheet. Result: A Confirm Action window is displayed. Click Yes to proceed. 9 You have successfully submitted a Worksheet as a Manager.

59 59 The Review Process When a Manager makes an award recommendation and submits the Compensation Worksheet, the next level Manager (Manager s Manager) reviews the recommendations made by the Manager and makes their own recommendations on the Worksheet. When the next level Manager submits their own Worksheet, s/he is approving the Manager s recommendations and submitting recommendations for their own direct reports for approval. This process continues until all next level Managers in the event have made their award recommendations. Example For your event, Go Green 100, Samuel Barbato made and submitted his recommendations. His next level Manager is Donald East, who will now make recommendations for his own direct reports (if they are included in the event) and review and approve/reject Samuel s recommendations. Once Donald is done, he submits the Worksheet to his next higher level in the chain-of-command and so on. All higher levels up the chain-of-command can do the following: Review and change award recommendations made by Managers (also called subordinate Managers). Make recommendations outside of the established guidelines that were setup during Stage 1. Submit Worksheets to the next level Manager in the chain-of-command, with or without changes. Reject Worksheets submitted to them by the subordinate Managers, thereby returning that Worksheet to the Manager one level down. Apply filters to view employees whose awards are flagged for review, outside the recommended range, or outside the allowed range.

60 60 The Compensation Event Approval Process If, during event setup, you elected to require event approval before processing payroll, the person designated as the Approving Authority receives a notification in the Message Center that the event is ready for approval. The Approving Authority must approve the event before it can be processed for payroll. Set Up Requirements If your organization requires events to be approved before processing payroll, then you need to do the following: Set up an Approval Workflow so that the event flows to the appropriate Approving Authority. Select the check box for Require This Event to be Approved before Processing Payroll in Step 1: Event Details of the wizard when setting up the event. To Approve the Compensation Event for Payout The Approving Authority reviews the recommendations, and can do any of the following: Change award recommendations Exceed the allowed limits defined for the event Apply filters to employees Enter comments. Depending on the action performed by the Approving Authority, the following may occur: Approving Authority s Action and Result Action Approve Reject Result The approving authority approves the event, with or without changes: The event status changes to Ready for Payroll Processing. You receive notification through the Message Center that the event is ready for payroll processing. The Approving Authority rejects the event, with or without changes: The event status does not change. You receive a notification through the Message Center that the event is suspended. You review the Compensation Worksheets again, make any necessary adjustments, and resubmit the Worksheets for approval.

61 61 Job Aid: To Approve the Compensation Event for Payout The Approving Authority performs the following steps to approve an event: Starting Point: Process > Talent > Compensation Dashboard Event Approval Steps Step Action 1 If you are the Approving Authority, you can access the event Worksheet from the Message Center notification. Optional: If you are emulating the Approving Authority, then in the row for the event, click (Action) and select View Worksheet for Approving. Result: The Event Details window opens. 2 Review the event's details and then close the window. Result: The Confirm Action window opens. 3 Click Yes. 4 Review the Compensation Worksheet. 5 Click Approve Event. Result: The Confirm Action window opens. 6 Click Yes. Result: The event is approved and ready for closing and payroll processing. Note: User roles with highest level of access permissions can emulate the Approving Authority.

62 62 Job Aid: Managing Conflicts The system identifies a conflict when the compensation change that you are trying to process for an event, coincides or clashes with some other activity, such as a hire/rehire date change, if that other activity occurred after the cut-off date, but during the recommendation period. Resolving Conflicts to Proceed with the Event When you finalize recommendations for an event, the Manage Conflicts page displays with a list of conflict/s that occurred. You must take an action for each conflict in order to move the event forward. The table below outlines various types of conflicts, a description and a possible resolution for each conflict type: Conflict Types and Resolutions Conflict Type The employee s annual salary has changed outside of the compensation event. Resolution Do one of the following: Suspend the award for this event. Accept the original award based on the previous salary. Accept the new award based on the new salary.

63 63 Conflict Types and Resolutions Conflict Type The employee s status is no longer active. The employee has one or more pending salary changes that can affect the award. The employee s currency has changed. In this event, only the event-designated currency can be supported. The hire or rehire date changed and will affect the prorated value and the amount of the award. Resolution Continue with the recommended award or suspend it. Continue with the recommended award or suspend it. You can review or delete the pending salary changes on the employee's Pay Rates page. Change the employee s currency to the event currency or suspend the recommendation. You can change the currency on the employee s Pay Rates page. Continue with the recalculated award or suspend it. You can review or change the employee s hire/rehire date on the employee s Job Profiles page.

64 64 Hands on Practice: Making Award Recommendations, Reviewing & Submitting Worksheets for Approval For your event, Go Green Annual Merit, emulate Donald East, the next level up Manager, to review and approve Samuel's recommendations. Donald does not have any of his own direct reports included in this event, so he will not be making any recommendations. Starting Point: Process > Talent > Compensation Dashboard Making Award Recommendations, Reviewing & Submitting Worksheets for Approval Step Action 1 Navigate to the Compensation Worksheet for Go Green 100 Annual Merit Event. 2 In the Select Worksheet field, click Donald East to display the list of his direct reports. Note: No direct reports of Donald are part of this event, the list will be blank. 3 Click (Action) and select Emulate Worksheet Owner. Result: A Confirm Action window displays. Click Yes to proceed. 4 Click All Eligible Employees. Result: The list expands to include Samuel's employees. 5 Review Samuel's recommendations. 6 Click Submit Worksheet. Result: A Confirm Action window opens with a warning that all changes are final and cannot be edited. 7 Click Yes. Result: Donald approved Samuel's recommendations and submitted them to the next level Manager for review. 8 Emulate Anthony Albright and review recommendations made. Then, submit the Worksheet. 9 Emulate Susan Dearborne and review recommendations made. Then, submit the Worksheet.

65 65 Making Award Recommendations, Reviewing & Submitting Worksheets for Approval Step Action Note: When you emulate the highest Manager, to submit all the Worksheets for the event, you see a Reject Worksheet button. Note: If you are emulating a Manager or a Manager s Manager, you can: Save and exit the Worksheet at any time, without submitting it. Stop emulating at any time (Refer the Job Aid: Emulation).

66 66 Hands on Practice: Reviewing & Approving Worksheets You submitted all of the Worksheets for Go Green 100 Annual Merit Event. No conflicts were identified. It s time to finalize the recommendations and submit them for final approval. Starting Point: Process > Talent > Compensation Dashboard Reviewing & Approving Worksheets Step Action 1 On the Go Green 100 Annual Merit event Worksheet, in the Select Worksheet field, confirm that Go Green 100 Annual Merit is selected or select it using the down arrow. 2 Click All Eligible Employees. Result: All recommendations are displayed. Review the recommendations. 3 Click Finalize Recommendations. Result: A Confirm Action window opens with a warning that all changes are final and cannot be edited. Click Yes to proceed. The Compensation Management - close Event - Pay Rate Update page displays. Note: When you finalize recommendations, you are approving all of the recommendations made by all the Managers included in the event.

67 67 Point of No Return: Approving the Event for Payout You have reached the second point of no return. Once a Compensation Event is approved, you cannot change award recommendations.

68 68 Closing the Event The last stage in the Compensation Event process is closing the event. This stage consists of two key tasks: 1. Updating pay rates (merit increase), or applying recommendations (one-time payment). 2. Generating and distributing Compensation Notices to the employees. Updating Pay Rates Employee pay rates can only be updated after the event is approved and the event status changes to Ready for Payroll Processing. If the Compensation Event is pending approval from the Approving Authority, you have to wait for the event to be approved and the status to change to Ready for Payroll Processing. If the Compensation Event does not require approval, then the status automatically updates to Ready for Payroll Processing. You can access the Update Pay Rates page to begin the payroll process.

69 69 Closing the Event (cont.) Generating and Distributing Compensation Notices There are three ways to distribute notices to employees: Message Center Printing and mailing out a printed copy To send compensation notices to employees, you can either: Create a Compensation Notice template, OR, Use the default Compensation Notice template provided by ADP Workforce Now. The graphic below shows a sample Compensation Notice sent to employees.

70 70 Job Aid: Creating a Compensation Notice Template Listed below are the steps to create a custom Compensation Notice Template: Starting Point: Setup > HR & Talent > Compensation Notice Templates Creating a Compensation Notice Template Step 1 Action Click (+) Add. Result: the Notice Template page displays. 2 In the Template Name field, enter <Name e.g.: Merit Notice> for the template. 3 Click the down arrow beside Edit Title and Content and select English. Result: the Edit Compensation Notice window opens. 4 In the Notice Title field, enter <Title e.g.: Merit Compensation> 5 In the Notice Content field, enter <content that you want to display to employees on their Compensation Notice>. Optional: Click SPELL CHECK, to ensure there are no errors. 6 Click Done. 7 8 In the Header Graphic field, click Change to upload graphics, such as a Company Logo. Click Remove if you wish to change the graphic you just uploaded. In the Preview section, select the type of Compensation notice you want to preview using the down arrow and then click Show. Result: A preview of the template opens. (Note: This varies based on the Browser you are using.) 9 Close the preview. 10 Come back to the Compensation Notice Template page and make any edits, if required. 11 Click Done to save your new custom Compensation Notice Template. Note: By Default, ADP Workforce Now provides a template Compensation Notice that clients can use as a starting point.

71 71 Hands on Practice: Updating Employee Pay Rates The Go Green 100 Annual Merit event is approved and ready for processing. Follow the steps below to proceed with updating employee pay rates: Starting Point: Process > Talent > Compensation Dashboard Updating Employee Pay Rates Step Action 1 In the row for Go Green 100 Annual Merit, click (Action) and select Process Payroll and Close Event. Result: The Compensation Management Close Event page, Pay Rate Update tab is displayed. Note: In situations when event approval is not required from the Approving Authority, the Compensation Management Close Event Page automatically displays when the final approver clicks the Finalize Recommendations button. 2 Click Update Pay Rate button. Result: The Confirm Action window opens. 3 Click Yes. Result: The Compensation BasePay Batch window opens, and pay rates are being updated. 4 The Compensation BasePay Batch window closes in a few seconds. Result: The Update Pay Rate button is deactivated, and the View Log Files link is displayed.

72 72 Updating Employee Pay Rates Step Action 5 Verify the Current Rate and New Rate columns the new pay rates are processed for the employees. Also, verify by navigating to the employees Employment Profile page. Example: Verify Edward Bonner's pay rate update by doing the following: Navigate to Edward's Employment Profile page. (People > Employment > Employment Profile - Search for Edward Bonner) In the Regular Pay tile, you see the details. Alternate option is to click merit increase is displayed in the timeline. (edit). The 6 Optional: You can also confirm employee pay rate updates from the following: Verify Input page: Process > Payroll> Verify Input > Action arrow beside Payroll Overview > Employee Changes Payroll Cycle: Process > Payroll > Payroll Cycle Transaction Proof and Payroll Register or Register Reports: Process > Payroll > Preview Payroll > Click Action arrow to select View Preview Results

73 73 Hands on Practice: Creating a Compensation Notice Prepare the compensation notice for your event Go Green 100 using the default template. Starting Point: Process > Talent > Compensation Dashboard Creating a Compensation Notice Step Action 1 Access the Customize Notice Settings tab using the Action arrow. 2 The Customize Compensation Notice page is displayed. Here, select Customize Notice Settings and, in the Allow Notice Settings to Be Edited Until field, enter the date five days prior to the event effective date. Note: Once the date in the Allow Notice Settings to be Edited Until field passes, the content is no longer editable. 3 In the Compensation Notice Template field, select Compensation Notice. Note: You can use the custom template if you created one using the Job Aid: Creating a Compensation Notice Template above. 4 Click the down arrow beside Edit Title and Content and select English. Note: If you click on Edit Title and Content it gives an error message. Remember to always click the down arrow beside Edit Title and Content. 5 In the Notice Title field, enter 20XX Merit Compensation, with XX being the current year. Note: You can customize the content in the Notice Content field. 6 Optional: You can customize the notice template with your company s logo by uploading the graphic in the Header Graphic field. 7 Preview your compensation notice, by selecting the options under Preview field and then clicking Show. 8 Click Done. Note: You can generate customized notices prior to updating employee pay rates. Follow the same steps as discussed above; however, access the Compensation Notice Settings tab from the Compensation Management Close page.

74 74 Hands on Practice: Managing & Distributing Compensation Notices The pay rate updates for all employees included in the Go Green 100 Annual Merit Event are processed. The Managers have met with the employees and discussed about the increases they received as part of this event. Now it is is time to send out compensation notices to these employees. Starting Point: Process > Talent > Compensation Dashboard Managing & Distributing Compensation Notices Step Action 1 In the row for Go Green 100 Annual Merit, click (Action) and select Manage and Distribute Notices. Result: The Manage and Distribute Notices page, Manage Notices tab is displayed. 2 Select All Eligible Employees to see all the employees in the event. 3 Click Select All.

75 75 Managing & Distributing Compensation Notices Step Action 4 Click Notify Employees. Result: The Confirm Action window opens. 5 Click Yes. Result: The Notify Employees icon is displayed next to each employee s name, indicating that the employees were notified. 6 The employees receive their Compensation Notices through the Message Center notification. 7 Alternate option is to generate PDF versions to or print and mail them out using the Generate Notice section.

76 76 Points of No Return You have reached the third and fourth points of no return.

77 77 Module 4: Completing a Bonus Event Completing a Bonus Compensation Event A bonus is a one-time payment awarded to eligible employees based on the criteria established by the organizations, such as a bonus paid as part of an on-going incentive program. Example Your company s compensation structure for sales employees provides them with opportunities to earn quarterly bonuses based on the number of units of product they sell. Bonus events can be set up in the same way as a merit event, using the same six stage process. Before getting started, ensure that the Bonus Compensation Type is mapped to the appropriate earnings code for your company. Adding Compensation Types and Mapping Them to Earnings Codes If a Compensation Event involves awarding one-time payments, such as bonuses or lump sum awards, then it is important to set up the corresponding Compensation Types in ADP Workforce Now and map them to appropriate earnings codes.

78 78 Job Aid: Creating and Mapping Compensation Types to Earnings Codes Listed below are the steps to create Compensation Types and map them to Earnings Codes: Starting Point: Setup > HR & Talent > Compensation Types Creating and Mapping Compensation Types to Earnings Codes Step 1 Action Click (+) Add. Result: The Add Compensation Type page displays. 2 In the Name field, type the name for Compensation Type. 3 In the Status field, keep the default Active. Click Done. Once you save the Compensation Type, click the Action arrow, then select Map Earnings Codes action item to map the Compensation Type. 4 Select the Earnings Code to map to the Compensation Type for each Company Code and click Done. 5 Notes: The Base Pay and Lump Sum Compensation Types are delivered with ADP Workforce Now. The Base Pay Compensation Type is mapped automatically, while the Lump Sum Compensation Type requires to be mapped manually. A client can create additional Compensation Types and map them appropriately as needed.

79 79 Scenario: Incorrect Mapping When you map Compensation Types to earnings codes, all earnings codes display in the list including Taxable Benefit, Regular, Commission, and others that are set up in Payroll for your company. This may cause confusion and lead to incorrect mapping. Before you begin, ensure you have the list of all Compensation Types and earnings codes to be mapped. When you begin mapping, carefully select only the earnings code relevant for the Compensation Event payout.

80 80 Hands on Practice: Setting up & rolling out a Bonus Event Your company, Go Green, issues quarterly bonuses with a target of 5% to its sales force based on achievement of predefined goals. Several sales executives are receiving a target bonus of 7%. You need to select those executives from the employees included in the event in order to assign the increased award percentage. The review period for this event is the current quarter of the calendar year. Using the Compensation Event wizard, set up and roll out the bonus event. Starting Point: Process > Talent > Compensation Dashboard Setting up & Rolling out a Bonus Event Step Action 1 Click. Results: The Compensation Event wizard launches. 2 Complete Step 1: Event Details as follows: In the Event Name field, enter Go Green Quarterly Bonus. In the Compensation Type field, select Bonus. In the Target Bonus field, enter 5. The % field is selected by default. Select Allow Awards to Be Prorated for the Defined Review Period and Prorate Awards Based on Employee s Hire/Rehire Date. Clear the check box for Require This Event to Be Approved before Payroll Processing. Enter applicable dates in each of the following fields: o Review Period Start Date o Review Period End Date o Recommendation Period Start Date o Recommendation Period End Date o Effective Date Click Next. 3 Complete Step 2: Budget Settings as follows: Accept the default selection of Bottom-Up Budgeting and Estimate the Budget Based on the Target Bonus. Click Next.

81 81 Setting up & Rolling out a Bonus Event Step Action 4 Complete Step 3: Select Employees as follows: Click Add Employees. Accept the default selection of Build Employee List or Select Saved List and then click Continue. Complete the Advanced Rule Builder as follows: Click OK. 5 Select the check box for the following sales directors: Ethan, Galant Tyffany, Martinez 6 Click Mass Assign Target Bonus. 7 In the Budget Estimate % field, enter 7. 8 Click Apply. Result: The list of employees displays the appropriate target amounts. Note: When setting up an event with a Bottom-Up budget estimate, you see a similar link, but it is called Mass Assign Budget Estimate. It works the same way that the Mass Assign Target Bonus link works. When you enter a different target bonus for one or

82 82 Setting up & Rolling out a Bonus Event Step Action more employees included in the event, the budget estimate increases by that amount. However, when you access the Worksheet to award Compensation, you do not see the different values estimated for employees identified during plan setup. The Managers enter the bonus for these employees in the Worksheet at the time they award Compensation. 9 In Step 3: Select Employees, you have already selected the employees to be included in the event. 10 Click on the right side of the Filter Options feature. 11 In the field for the filter that you want to use, make the appropriate selection. Example: In the Job Title field, select DIRSALES - Director of Sales 12 Click Filter. Result: The subset of employees replaces the full list of employees selected for the event. 13 Make the necessary changes for these employees. 14 In the Filter Options section, click Reset to display the full list of employees selected for the event. 15 Complete Step 4: Review Managers as follows: Accept the budget defaults for the Managers in the event. Click Next. 16 Associate the bonus event with the Quarterly Bonus Review rating scale. Complete Step 5: Guideline Settings as follows: Select Use a Rating Scale to define award guidelines. Select Quarterly Bonus Review. Note: If you do not have the rating scale setup for Quarterly Bonus Review, then you need to create one prior to completing this step. Starting Point: Setup > HR & Talent > Rating Scales. In the Define Guidelines as field, keep the default selection as Percentage. Click Next. 17 Complete Step 6: Guidelines as follows:

83 83 Setting up & Rolling out a Bonus Event Step Action Select Auto-Populate Target Awards for All Employees in the Worksheet. Enter the guidelines as indicated in the table below: Award Guidelines Rating Guideline Award Exceeds Expectations Target 100% Recommended 90% 105% Allowed 0% 110% Meets Expectations Target 85% Recommended 75% 100% Allowed 0% 105% Does Not Meet Expectations Target 0% Recommended 0% 0% Click Next. Allowed 0% 0% 18 Complete Step 7: Summary as follows: Review the event summary information and then click Done. Result: A Confirm Action window opens. Click Yes to proceed. The event status on the Dashboard changes to Rolled Out.

84 84 Hands on Practice: Making Award Recommendations, Approving & Closing the Bonus Event For the Go Green Quarterly Bonus event, emulate the higher level Managers to approve Worksheets and finalize all recommendations. Process the bonus event for payout. Starting Point: Process > Talent > Compensation Dashboard Making Award Recommendations, Approving & Closing the Bonus Event Step Action 1 In the row for the event, click (Action) and access the Worksheet. 2 Emulate all the Managers, award recommendations, and submit the Worksheet. Emulate Go Green Quarterly Bonus and Finalize recommendations for the event. Result: The Compensation Management Close Event page displays. 3 On the Payout Schedules Mapping tab, verify all information is correct before proceeding. Also, ensure that the Cost Numbers are appropriately mapped. When ready, select the check box beside the company codes for which you are processing the bonus payouts. Click Apply Recommendations. Result: The payments are processed. Note: If a company code doesn t have a pay period schedule with the pay date associated with the Compensation Event date, then a message displays in the Exclusions/Warnings field. You must open a pay period schedule prior to applying the recommendations to avoid exclusions/warnings.

85 85 Making Award Recommendations, Approving & Closing the Bonus Event Step Action 4 Verify the payments were processed by accessing the: Payroll Dashboard: Process > Payroll > Payroll Cycle Verify Input page (Process > Payroll > Verify Input > Payroll Overview > Payments & Adjustment > Compensation Events Payments) Transaction Proof and Payroll Register or Register Reports

86 86 Module 5: Completing a Complex Event In this module, you are going to complete an end-to-end complex Compensation Event that includes both a base pay increase and a one-time payment award. This event follows the same six stage process and incorporates the following attributes: Performance Reviews Compa-ratios Lump sum Awards (for those employees who might not otherwise receive a compensation award due to their compa ratio) and, Top-Down budgeting.

87 87 Job Aid: Performance Reviews & Compensation Events For information to flow from ADP Workforce Now Performance to Compensation, it is important for the two to integrate with each other. If an event is associated with a performance review, you must ensure that the: Performance policies are set up in the application prior to setting up an event. The review period for the performance review policy is the same as the review period that you enter in Step 1: Event Details of the Compensation Event wizard. Performance & Compensation Integration If your company requires employees to be involved in the performance review process, there can be two possible scenarios: Performance & Compensation Integration If the Performance Policy associated with the Compensation Event Does not require employees to acknowledge the review Requires employees to acknowledge the review Then The performance rating integrates with the Compensation Event when the Manager completes the review, provided that the Manager did not select a rating for the employee using the Compensation Worksheet. The Performance Rating column on the Compensation Worksheet is displayed as editable. If the employee acknowledges the rating after the event is rolled out, that rating is integrated with the event and is displayed on the Compensation Worksheet after the acknowledgement. The acknowledgement can happen beyond the cut-off date, and Compensation Management integrate the new information into the Compensation Worksheet, provided that the Manager did not select a rating using the Worksheet.

88 88 The Compensation Worksheet: Additional Elements The Compensation Worksheet associated with a merit event (such as the one you just created) has additional information and fields for Managers to use when making award recommendations.

89 89 The Compensation Worksheet: Additional Elements (cont.) The table below outlines the additional elements of the Compensation Worksheet: Additional Elements: Compensation Worksheet Elements Performance Rating Field Score Column Performance Reviews Tab Award Calculator Red and Green Circles Descriptions The performance rating from a completed performance review flows to the Compensation Worksheet so the Manager does not have to select a rating. If your company associates a score with an overall performance rating, the score is displayed in the Score column for each employee. Lists the performance review actions for the selected employee. Provides Managers with a graphical view of the guidelines for making award recommendations that were established during event setup. The numbers on the sliding scale represent the range of allowed award for a given performance rating. The green pointer on the sliding scale points to the Target award. The green area represents the Recommended range The yellow area represents the Allowed range The pink area represents anything outside of the allowed range. In addition, you also see employee information for each of the following attributes in the Proposed and Current sections: Salary, Lump Sum, Compa-ratio, Peer Ratio, and Pay Grade range. Red circles next to employees current salaries indicate that the employees are being paid above the maximum for their pay grade. Green circle next to employees current salaries indicate that the employees are being paid below the minimum for their pay grade. Tip: Notice that the red circle icon is filled in on the top half, indicating that an employee is being paid above the pay grade range. The green circle icon is filled on the bottom half, indicating that an employee is being paid below the pay grade range. Peer Ratio Peer ratios are a metric that helps Managers understand how an employee is paid relative to his or her peers.

90 90 Additional Elements: Compensation Worksheet Elements Descriptions Peer ratio is calculated by dividing an employee s annual salary by the employee s peers average annual salaries, then multiplying by 100. As the employee s salary exceeds that of his peers, the ratio increases. Peer Ratio = Employee s Annual Salary / Employee s Peers Average Annual Salaries X 100 Defining Peers in ADP Workforce Now: You can define peers on the Setup > Tools > System Options > General Settings page in ADP Workforce Now. You can use one or any combination of three elements job title, pay grade, or location. Once defined, the peer definition applies to all companies in your organization.

91 91 Compa-ratios A compa-ratio (short for comparative ratio ) is a formula commonly used to assess the competitiveness of an employee s pay level. A compa-ratio is the ratio of an employee s actual salary (the numerator) to the midpoint of the applicable (the denominator) salary range. To calculate an individual s compa-ratio, divide their salary by the midpoint of the assigned salary range. Example Edward Bonner s salary is $55, CAD. The midpoint of the salary range for his pay grade is $50, Edward s compa-ratio is 1.10, meaning that he is paid approximately 10% over the midpoint for his pay grade. Note: Pay grades and salary structures must be set up in your ADP Workforce Now database in order to set up Compensation Events that include compa-ratios. This information also serves as a guideline for Managers to use when making award recommendations.

92 92 Lump Sum Awards Lump sum awards are one-time awards. Lump sum awards do not affect an employee s salary in the way that a merit increase affects salary. Lump sum awards are used to reward employees who are not eligible for merit increases yet their performance warrants an award. Example Go Green does not permit salary increases for employees who are already on the greater side of the pay grade. For these employees, if their performance deserves an award, Go Green rewards them with a lump sum. Donald East's salary is $109,200.00, which is greater than the maximum for his pay grade. Donald is an exemplary performer, so his Manager, Anthony Albright, recommends a lump sum award.

93 93 Lump Sum Awards (cont.) When Anthony enters this award in the Compensation Worksheet, the dollar amount of the award is displayed in the Lump Sum column and will be paid as such.

94 94 Top-down Budget When an organization uses a top-down budgeting approach, a company officer defines the budget for the compensation event and allocates dollars throughout the organization. Allocating a Top-down Budget Allocation of a top-down budget begins with the company officer providing a budget for the event to the event creator (Practitioner). You (as a Practitioner) proportionately allocate the budget, first distributing it across the top management tier of the organization. From there, the top-tier Managers proportionately allocate their budget to the next level of Managers, reserving a sufficient amount to make award recommendations for their own direct reports. This allocation of money cascades down from each management level through to the first level Managers. Sample Top-down Budget

95 95 Top-down Budget (cont.) Sample Top-down Budget Including Funds Reserved for Direct Reports This graphic illustrates the amounts reserved for direct reports at each level of the top-down budget before allocating funds to the subordinate level.

96 96 Hands on Practice: Setting up & Rolling out a Complex Event Set up the annual merit event for Go Green. This event includes a Performance Policy, Compa-ratios, Lump Sum Awards, and Top-down Budgeting. Review Period: Recommendation Period: Cut-Off Date: Effective Date: Setting up & Rolling out a Complex Event Step Action 1 Click ADD. Result: The Compensation Event wizard launches. 2 Complete Step 1: Event Details as follows: In the Event Name field, enter Go Green Annual Merit. In the Compensation Type field, select Base Pay. In the Compensation Change Reason field, select Merit. Select Use Pay Grades. Result: A Confirm Action window opens. Click Yes to proceed. Select Allow Awards to Be Prorated for the Defined Review Period. Select Prorate Awards Based on Employee s Hire/Rehire Date. Select Send event rollout notification to Managers. Clear the check box for Require This Event to Be Approved before Processing Payroll. In the Review Period section, enter the review period start and end dates. In the Recommendation Period section, enter the recommendation period start and end dates, the cut-off date, and the effective date. 3 Click Next. 4 Complete Step 2: Budget Settings as follows: Select Top-Down Budgeting. Result: A Confirm Action window opens. Click Yes to proceed. Click Next.

97 97 Setting up & Rolling out a Complex Event Step Action 5 Complete Step 3: Select Employees as follows: Click Add Employees. Accept the default selection and click Continue. Complete the Advanced Rule Builder as indicated in the following graphic: Click OK. 6 The following employees are part of a different event, we are going to exclude them from this event: Barry, John Dainton, Fernand Dexter, John Fitzgerald, Gail Fournier, Patrick Garland, Carlo Intermont, Lorraine

98 98 Setting up & Rolling out a Complex Event Step Action Intes, Marie Kennedy, Marchall Lovejoy, John Select the check box for each employees listed above. 7 Click Delete Employees. Note: When you begin searching for employees using the Advanced Rule Builder, the employee list may include inactive/terminated employee who are not archived. You can select these terminated employees and exclude them from your event list. 8 We want to include Barbato, Samuel to this event. He is not in the list of employees selected for the event. Follow the steps below to add him to the employee list: Click Add Employees. In the Add Eligible Employees window, select From Alphabetical List. In the Employee Selection window, search for Barbato, Samuel. Click the check box beside his name and then click Ok. Click Next. 9 Review Managers included in the event. In the Review Level section, click All Managers. Result: All Managers included in the event are displayed.

99 99 Setting up & Rolling out a Complex Event Step Action 10 Enter the budget details for the event: In the Event Budget Details section, in the Allocated for This Event field, enter the amount budgeted for this event and then press Tab In the Budget field for Susan Dearborne, enter the amount budgeted for her and then press Tab. In the Budget field for Anthony Albright, enter the amount budgeted for him and then press Tab. In the Budget field for David Cornier, enter the amount budgeted for him and then press Tab. In the Budget field for Donald East, enter the amount budgeted for him and then press Tab. 11 Click Next. 12 Complete Step 5: Guideline Settings as follows: Select Use a Rating Scale to define award guidelines and then select Annual Merit Review Scale. Keep Percentage as the Default selection for Define Guidelines as field. Select Use Compa-ratios for Defining Guidelines. In the Number of Compa-Ratio Segments field, select 2. Click Next.

100 100 Setting up & Rolling out a Complex Event Step Action Notes: For information to flow from ADP Workforce Now Performance to Compensation, it is important for the two to integrate with each other. You must ensure that the: Performance policies are set up in the application prior to setting up an event. Review period for the performance review policy is the same as the review period that you enter in Step 1: Event Details of the Compensation Event wizard. 13 Complete Step 6: Guidelines as indicated in the following graphic: Click Next to continue. 14 Complete Step 7: Summary as follows: Review your entries.

101 101 Setting up & Rolling out a Complex Event Step Action Click Done. Result: The Confirm Action window opens. 15 Click Yes. Result: The merit event with a performance policy, compa-ratios, lump sum awards, and a top-down budget is rolled out.

102 102 Hands on Practice: Making Award Recommendations, Approving/Rejecting Recommendations & Submitting Worksheets for a Complex Event All Managers included in the Go Green Annual Merit event received a notice that the event has been rolled out. All higher level Managers have agreed to accept the recommendations made by the Managers and approve the Worksheets. Anthony has given Donald a performance rating of Exceeds Expectations and would like to add a comment to communicate his rationale to the next higher level for consideration when finalizing recommendations. Provide below are the recommendations to be made by the Managers for their direct reports. Award Recommendations Employee Reports To Performance Rating % Award Barbato, Samuel East Donald Perform as Expected 1 Comment Flannigan, Christopher Cormier, David Perform as Expected 1 East Donald Albright, Anthony Exceeds Expectations 2 Donald exceeded expectations, and I am recommending the maximum increase of 2%. Cramer, Neal Dearborne, Susan Perform as Expected 1 Jones, Elizabeth Dearborne, Susan Perform as Expected 1 Emulate all the Managers to make recommendations, approve subordinate recommendations and submit the Worksheets for final approval. Starting Point: Process > Talen > Compensation Dashboard Making Award Recommendations, Approving/Rejecting Recommendations & Submitting Worksheets for a Complex Event Step Action 1 Access the Compensation Worksheet for Go Green Annual Merit event. 2 Emulate Donald East.

103 103 Making Award Recommendations, Approving/Rejecting Recommendations & Submitting Worksheets for a Complex Event Step Action 3 Enter the performance ratings for his direct reports. Note: Ratings entered in the Compensation Worksheet take precedence over those entered in ADP Workforce Now Performance. 4 Click Submit Worksheet. Result: A Confirm Action message displays. Click Yes to proceed. 5 Click Save and Exit. Note: This step allows you to save the work you have completed. 6 Navigate back to the Worksheet. Emulate David and submit his recommendations. Result: A Confirm Action message displays. Click Yes to proceed. 7 Emulate Anthony. Select the performance rating for Donald East as Exceeds Job Requirements. In the % Award field, enter 2. 8 Scroll to the Comments section for Donald East, click. 9 Enter the comment and then click Done. 10 After you have awarded recommendations for Anthony s direct reports, review recommendations made by his subordinate Managers (Donald and David). 11 You are not making any changes to the subordinate Manager s recommendations. Click Submit Worksheet to submit Anthony's Worksheet. Result: A Confirm Action message displays. Click Yes to proceed. 12 Emulate Susan Dearborne to make, review, and submit all recommendations. Click Submit Recommendations. Result: The Reject Worksheet button is displayed. Susan can reject her or Anthony's Worksheet, if required.

104 104 Making Award Recommendations, Approving/Rejecting Recommendations & Submitting Worksheets for a Complex Event Step Action 13 In the Select Worksheet field, select Go Green Annual Merit. 14 Change the view to All Eligible Employees. 15 Finalize the recommendations. Click Finalize Recommendations button. Result: A Confirm Action message displays. Click Yes to proceed.

105 105 Making Award Recommendations, Approving/Rejecting Recommendations & Submitting Worksheets for a Complex Event Step Action 16 Optional: You may see the Manage Conflicts page, if a Conflict occurs. For example, in the following graphic, Samuel Barbato s salary was changed outside of the Compensation Event. Note: If a Conflict is identified, you have to resolve the conflict in order for the event to be ready for payroll processing. (Refer the Job Aid: Managing Conflicts) 19 Under Review Conflict Details column, click External Salary Change to review the details of the conflict. 4 Close the External Salary Change window. 5 Scroll to the right and under Action field, select Accept New Award/Reject Original Award option from the list.

106 106 Making Award Recommendations, Approving/Rejecting Recommendations & Submitting Worksheets for a Complex Event Step Action 6 Click Finalize Recommendations button. Result: A Confirm Action message displays. Click Yes to proceed. 7 The Compensation Management Close Event page displays. The event is approved and ready to process for payout.

107 107 Closing a Complex Event The last stage in the Compensation Event process is closing the event. Depending on the type of event, this stage consists of the following tasks: Updating pay rates (merit increase), or applying recommendations (one-time payment) Generating Compensation notices to be sent to the employees (applicable to all events) The Go Green Annual Merit event you just processed involves a merit increase and a lump sum award payment. As a result, on the Compensation Management Close Event page, do the following: Go to the Pay Rate Update tab to process merit increase. Go to the Payout Schedules Mapping tab to apply recommendations. Go to the Compensation Notice Settings tab to generate compensation notices.

108 108 Hands on Practice: Closing a Complex Event Process the payroll for your Go Green Annual Merit event. Starting Point: Process > Talent > Compensation Dashboard Closing a Complex Event Step Action 1 In the row for the event, click (Action) and select Process Payroll and Close Event. 2 In the Compensation Notice Settings tab, prepare the Compensation notices to be sent to the employees. Note: For this event, you can create two different notices, one for employees receiving merit increase, and other for employees receiving lump sum award. 3 Click the Payout Schedules Mapping tab. 4 Review all the information and select the appropriate company code. Note: You may identify an Exclusion/Warning if the company for which you are trying to process the event does not have an open pay period with the pay date on or after the Effective Date of the event. You have to open a payroll cycle in order to proceed with applying recommendations and processing the event. 5 Click Apply Recommendations. Result: A Confirm Action window opens. Click Yes to proceed. You come back to the Compensation Dashboard page which displays all the events. Notice that the event status is Ready for Payroll Processing. 6 Once again, in the row for the event, click (Action) and select Process Payroll and Close Event. 7 On the Compensation Management Close Event page, in the Pay Rate Update tab, review all information. 8 Click Update Pay Rate button. Result: The Confirm Action window opens. 9 Click Yes. Result: The Compensation BasePay Batch window opens, and pay rates are being updated.

109 109 Closing a Complex Event Step Action 10 Click Close. Result: The Update Pay Rate button is deactivated, and the View Log Files link is displayed. When you come back to the Compensation Dashboard, notice the event status, it changes to Closed. 11 Verify the Current Rate and New Rate columns the new pay rates are processed for the employees. 12 You can also confirm employee pay rate updates as well as lump sum award payments in the following ways: Employees Employment Profile page Payroll Dashboard Verify Input page Transaction Proof and Payroll Register or Register Reports Note: If an Exclusion/Warning is observed when trying to process one-time payments for an event, do one of the following: 1. Manually change the active payroll cycle so that the effective date falls within the pay period. 2. Set a reminder to come back to the Payout Mapping Schedules tab to Apply Recommendations when the pay period; within which the effective date falls, is open.

110 110 Module 6: Special Circumstances Employee Transfers If any transferred employee is part of a Compensation Event, then the following scenarios may arise: Scenario 1: The Employee is transferred to Another Province of Employment or Another Business number which requires a second tax form. If this employee is attached to a merit increase Compensation Event: The Rate/Salary change occurs irrespective of the employees transfer date and the Compensation event dates. If this employee is attached to a one-time payment Compensation Event: The one-time payout is rejected irrespective of the employees transfer date and the Compensation event dates. You are required to manually process the one-time payment for this employee. Scenario 2: The Employee is transferred to Another Department with the Same Tax Form. If this employee is attached to a merit Increase Compensation Event: The Rate/Salary change occurs similar to the previous scenario. If this employee is attached to a one-time payment Compensation Event: The one-time payout occurs. No manual steps are required. Verifying Compensation Changes for a Transferred Employee To verify compensation changes for a transferred employee, review the following: Employee Transfer page: Starting Point: Process > HR > Transfer Employee Verify Input page: Starting Point: Process > Payroll > Verify Input Transaction Proof and Payroll Register or Register Reports: Starting Point: Process > Payroll > Preview Payroll

111 111 Related Message Center Notifications If an employee associated with a Compensation Event is transferred, ADP Workforce Now sends out a Message Centre notification to all Practitioners; irrespective of their security and access permissions. Since transfers are done in Workforce Now Payroll, messages are sent to all Practitioners whether or not they have access to the employee record or ADP Workforce Now Compensation Management. Delete or ignore messages related to employee transfer, if you do not have: 1. Payroll access 2. Access to ADP Workforce Now Compensation Management 3. People access to the employee being transferred.

112 112 One-time Payments One-time Payment Not Visible in Pay Data Batches The one-time payment Compensation Event payout details do not appear within WFN pay data batches. These payout details are also not visible on the Payments and Adjustments page (People > Pay > Pay and Adjustments). To view if a one-time payout was processed or not, do the following: 1. Verify Compensation Events Payments page Starting Point: Process > Payroll > Verify Input > Payroll Overview > Payments & Adjustments > Compensation Events Payments Note: This information can also be viewed from the Payroll Dashboard.

113 113 One-time Payments (cont.) 2. Preview Transaction Proof and/or Payroll Register/Register reports. Pathway: Process > Payroll > Preview Payroll > Click Action arrow to select View Preview Results > Select the Report you wish to view. Employee Requests to Put a Portion of the One-time Payment Money towards RRSP If your employee requests to direct a portion of their bonus money towards their RRSP contribution, manually process the payment for the employee, as follows: One-time Compensation Payment towards RRSP Contribution Step Action 1 Navigate to People > Pay > Pay & Adjustments 2 Using search bar,, search for employee 3 In the Type field, select Bonus Pay from the drop down options list.

114 114 One-time Compensation Payment towards RRSP Contribution Step Action Note: The Compensation Payment is always sent as a payment #1. Therefore, if the employee already has an amount set up in a bonus payment for a different reason, that amount would need to be deleted prior to adding in the value for the Compensation payment. After adding the value for the Compensation payment, you can add back that other amount as a payment #2. 4 Click ADD. Result: A four step wizard displays with step 1. Earnings as a default selection. 5 Click on step 2. Deductions. 6 Select the appropriate Deduction Code and enter amount or percentage value.

115 115 One-time Compensation Payment towards RRSP Contribution Step Action Note: If an employee wants a certain percent of the one-time payment, such as 60% of the bonus, to be sent to their RRSP, then you as a Practitioner need to calculate the value and input it in the Amount field. 7 Click Done. When a payroll cycle runs, ADP Workforce Now processes the payroll as normal behavior of Tran code 91. You can verify this under Transaction Proof and Payroll Register/Register reports. One-time Compensation Payment for On Leave/Terminated Employees The transaction code for a one-time Compensation payment is coded as a bonus payment (TC91). Only active employee can be paid via this transaction code; however, the bonus may apply to On Leave/Terminated employees. How do you payout one-time payments, such as a bonus or a lump sum amount, tied to a Compensation Event for On Leave/Terminated employees? The options are as follows: 1. For on leave employees, wait until the employee returns from leave. If you need to pay the employees on leave prior to their return, then process the payment as a separate pay. 2. For a terminated employee who is still to be paid, issue the payment as a separate pay. Note: Most companies do not pay bonuses to a terminated employee. In those cases, you as a Practitioner would have to advise the amount of Government Pension Plan (GPP) and potentially the amount of taxes as well since a separate payment would be calculated using pay period taxes and does not do the annualized tax calculation. 3. Alternately, you can issue a manual payment to the employees and update those payments by doing a year to date adjustment: Starting Point: People > Pay > Pay & Adjustments One-time Compensation Payment for On Leave/Terminated Employees Step Action 1 Using the search bar, search for Inactive/Terminated employee.

116 116 One-time Compensation Payment for On Leave/Terminated Employees Step Action 2 In the Type field, select Bonus Pay from the drop down options list. 3 Click ADD. Result: A four step wizard displays with step 1. Earnings as a default selection. 4 Select appropriate Earnings Code. Enter appropriate amount under Dollars field. Enter appropriate hours under Hours/Units field. 5 Click Done.

117 117 Module 7: Compensation Management Reporting ADP Workforce Now Compensation Management provides you with the ability to generate Budget and Worksheet reports associated with an event. The following reports are available (built-in) within ADP Workforce Now Compensation Management: Manager and Budget Details Report Worksheet Details Report In addition, you can create your own custom Compensation reports using the Custom Reports feature. Manager and Budget Details Report Only you (as a Practitioner) can generate this report. Follow the steps below to generate the report: Access the Compensation Event wizard and navigate to Step 4: Review Managers. Click the Export to Excel link.

118 118 Manager and Budget Details Report (cont.) The Manager and Budget Details Report is exported as an excel workbook as shown in the graphic below.

119 119 Worksheet Details Report Practitioners and Managers can export Worksheet details after an event is rolled out. Follow the steps below to generate this report: Navigating to the Compensation Dashboard. Click the Action arrow and then select Export Worksheet option. The Worksheet Details report is also exported as an excel workbook as shown in the graphic below.

120 120 Custom Reports Create your own custom Compensation reports by including compensation-related fields to your reports in ADP Workforce Now Custom Reports. The following graphic shows the compensation-related files in Step 2: Select Fields of the Set Up Report wizard. Starting Point: Reports > Custom Reports > Set Up New In Step 2: Select Fields and then select Files from the Filter option. The table below outlines custom report files that contain compensation-related fields: Custom Reports Files and Descriptions File Compensation Events Description Contains fields that relate to active and historical Compensation Events. Select the fields from the following options: Budget Settings Employees Event Details Guideline Settings Managers Notice Settings

121 121 Custom Reports Files and Descriptions File Compensation Types Description Contains fields that relate to the Compensation Types, which are the pay elements used to process Compensation awards to employees. This file also contains fields that relate to company codes and earnings code mapping for nonstandard Compensation Types, such as bonuses. Select the fields from the following options: Compensation Worksheet Earnings Code Mapping General Information Contains fields that relate to processing a Compensation award for an event and the employees involved in the event. Select the fields from the following options: Conflict Resolution Pay Rate Update Paydata Batch Settings Worksheet Notes: Payments issued via Compensation Management do not appear on the Pay Data Summary Standard report. As a result, the information related to Compensation payments is not visible on the Pay Data Summary report. (Reports > Standard Reports > Paydata) Verify this information by accessing other reports, such as the Transaction Proof report, the Register or Payroll Register reports, and/or other reports. (Starting Point: Process > Payroll > Preview Payroll)

122 122 Module 8: Tools & Resources The ADP Client Service Centre The ADP Client Service Centre is an online resource available to all ADP clients. Users can access a multitude of resources using this tool: The Bridge: This is an ADP sponsored online community for ADP clients to share knowledge, skills and have questions answered by client/adp within the community. The ADP Workforce Now Support Centre: This is an online tool built directly into Workforce Now. The tool is designed to provide users with: o Step-by-Step procedures o Online documentation regarding a variety of subjects o Learning Bytes on a variety of subjects The Year End Service Center, including reference materials and forms. Accessing and Navigating the Client Service Centre The Client Service Centre Step Action 1 Use your Internet browser to log into 2 Select the Client Service Centre login, located in the upper-right corner of the page. 3 4 Enter your company code and address, and then select Login. Result: The Client Service Centre home page displays. Locate the ADP Workforce Now registration area within the Client Service Centre. Select the Learning Bytes link located under the title Training. Results: The Welcome to the Learning Bytes Library page appears, and the Learning Bytes section expands to display all products that have Learning Bytes.

123 123 The Bridge The Bridge is sponsored by ADP, and is an exclusive online community for ADP clients. This community connects HR and Payroll Practitioners from across Canada and provides an environment where users can ask questions, find answers, and network with peers. The community is free, always available, and is an excellent resource for support on a variety of subjects. Benefits to Registering for the Bridge Allows Payroll Practitioners and HR professionals like you to connect, engage and share information in an easy-to-use, fully accessible online forum. Acts as an additional resource for support, frequently asked questions and information for ADP clients of all sizes using all products. Always on, for 24/7/365 access anywhere in Canada. Easy to use. Accessing and Registering for the Bridge The Bridge Step Action 1 Use your Internet browser to log into 2 Select the Client Service Login, located in the upper-right corner of the page. 3 Enter your company code and address, and then select Login. 4 Select The Bridge, from the menu on the left. Result: An overview of what The Bridge is displays. 5 Click the Visit The Bridge link located at the bottom of the overview to register.

124 124 The ADP Workforce Now Support Centre You can access to this tool 24/7. This tool provides a variety of help: Step by Step instructional information. Learning Bytes (short 2-3 min instructional videos) on a variety of topics. Documentation providing you with specific details about the topic searched. Accessing and Searching the ADP Workforce Now Support Centre The ADP Workforce Now Support Centre Step Action 1 Select the Support link, located on the top right of the screen. 2 Type Payroll into the search field, and then select Enter or the "Magnifying Glass" icon to begin the search. Results: All topics with Payroll display 3 Review the available resources IF: If you want to: Read documentation: View Step by Step instructions: View Learning Bytes: THEN: Select Documentation, then select topic Select Knowledge, then select topic Select Learning, then select topic Select the Knowledge tab and select the Processing Payroll for Multiple Companies. Results: A second window opens and the Learning Byte plays. When completed, select the back to support link to return again to the search screen.