Configure compensation plans, payroll elements, HR actions, and other objects for defining plans to allocate off-cycle compensation to individuals or for personal savings and charitable contributions. Add payroll elements used in these plans to compensation history.
To define Individual compensation and personal contribution plans, application implementation managers and compensation administrators start from the Setup and Maintenance Overview page. Select Navigator - Setup and Maintenance .
Individual compensation plans define variable compensation that managers can award to individual workers outside of the regular compensation cycle, such as a spot bonus or education reimbursement. You can also create plans that workers use to manage their own contributions to charitable or savings plans.
The following components comprise the details of a plan:
Each plan must have at least one option, with which you associate payroll element details and optional eligibility requirements. For example, to specify a different compensation amount for each vehicle model within a company car plan, set up a separate option for each model. You can also attach different eligibility restrictions to each model, such as restricting luxury models to executives only. Another example is a spot bonus plan with options consisting of different fixed monetary amounts.
Associate a payroll element with an option to store compensation-related information. You can associate each option with only one element and each element with only one plan and option.
When you set up an element, you configure input values that determine the following:
For example, you can configure an input value to enter the vehicle mileage when issued for a company car plan.
Eligibility profiles control which compensation plans or options a particular worker is entitled to participate in. You can attach eligibility profiles to a plan, an option, or both plan and option. For example, you might attach an eligibility profile to the company car plan to include only the sales department, and then attach additional eligibility profiles to the vehicle model options to restrict luxury models to only executive positions.
Compensation eligibility evaluation processing also uses criteria defined at the element link level to determine whether a person is eligible for a compensation plan.
To specify when payments begin under the plan and when they end if compensation is recurring, select from several date rules, such as Next payroll period start date. You can select a rule that enables the manager or worker to enter the date, or use a formula to derive the dates by your own logic.
Plan access restrictions control a user's ability to access or make updates to awards in individual compensation plans.
You can restrict access to a plan based on a combination of three factors:
You can compose optional instruction text to assist managers or workers using the plan.
You can create a variety of individual compensation plans for one-time or ongoing payments or contributions, for various purposes. The following scenarios illustrate some typical plans and provide tips on how to set them up.
A typical use of a plan for a one-time payment is a spot bonus. Set up your payroll element to make a single payment of a manager-entered value and process the payroll element once per payroll period. Since this is a one-time payment, specify a payment start date and leave the end date blank. You might want to add an eligibility profile to constrain the plan. For example, use derived factors to identify full-time employment for a minimum of one year length of service. To restrict access by HR action, select desired actions related to hiring, adding, and promoting workers. Also add the Manage Individual Compensation action to enable managers to award the bonus through the Person Gallery and Manager Resources Dashboard.
A typical use of a plan for an ongoing payment is a car allowance. In this example, regional sales managers are eligible for a car allowance based on the radius of their territory from headquarters. Workers whose territory radius is less than or equal to 100 miles from headquarters receive 300 USD per month while those with a radius greater than 100 miles receive 500 USD per month. Set up two plan options:
Both payroll elements process once a month. Enable the manager to enter start and end dates based on an agreement with the worker. For example, payment might start on the first of the month or the first payroll period following a promotion and end in one year. In this scenario, you would attach an eligibility profile that selects the Regional Sales Manager job. To restrict access by HR action, select desired actions related to hiring, adding, promoting, and transferring workers. Also, add the Manage Individual Compensation action to enable managers to award or update the car allowance through the Person Gallery and Manager Resources Dashboard.
You can add instructions to inform managers of the policy of payment based on radius.
For worker contribution plans, set up a plan option for contributions of either amount or percentage, and set up a payroll element with a corresponding input value of either a flat amount or percentage to contribute per payroll period. Start dates are typically 1 January of the next calendar year or after open enrollment. Select Manage Contributions as the access action to make the plan available to workers to manage. You can define periods where workers can enroll for the first time, update existing contributions, or discontinue contributions. For example, enable workers to always create new allocations while restricting allocation updates and discontinuations to a specified period, such as an open enrollment period of 15-30 November. You can add any instructions necessary to assist workers with the specific plan policies.
Plan access restrictions control the situations in which an individual compensation plan is available for allocations or contributions by a line manager or worker, and regulate the user's ability to create, update, or discontinue allocations or contributions under the plan. You choose whether to restrict plan access and, if you do, you specify restriction details by action.
The first choice you make on the Plan Access tab is whether or not to restrict access to the plan.
If you choose not to restrict access, then this plan becomes available to line managers and workers in all pages where individual compensation or personal contributions can be managed.
Use the No option with caution to avoid granting workers access to manager plans. For example, if you do not restrict access to a bonus plan, then individual workers would be able to manage the bonus plan for themselves in their portrait. There are very few situations in which you would not restrict access to a plan.
To complete the plan access configuration, you must further define the restriction by selecting and adding actions and specifying other access level details.
If you choose to restrict access, you must select at least one action. For each action that you add to the plan, you must further specify the time period in which the user can create, update, or discontinue allocations or contributions
Important action options include:
Select one or more HR actions in which this plan should be available to the line manager or HR specialist for eligible workers during the corresponding HR transaction.
For example, add a transfer action to a moving allowance plan to make it available when transferring a worker.
This option makes the plan available to line managers in the Manager Resources Dashboard or Person Gallery if the worker is otherwise eligible for the plan. If you select other HR actions but do not select this option, the plan would be available to the manager only within the selected HR action transaction, such as a promotion transaction.
You can use this action to provide managers with manager dashboard and portrait access to compensation plans that are either related or unrelated to HR transactions, as illustrated in the following examples.
If the plan is a worker contribution plan, such as a savings or charitable contribution plan, you must select only this option. This action makes the plan available to eligible workers in their portrait. Specify the additional access details according to plan design, such as a restricted time period for enrolling in, modifying, or discontinuing the plan.
Do not select any additional actions for a worker contribution plan.
Selecting All actions is similar to not restricting access, except that you can specify access details that apply to all actions. This option includes all actions available in the list, including the Manage Contributions action, which makes the plan available to all workers who are otherwise eligible for the plan.
Use the All option with caution because it gives both workers and managers access to the plan. There are very few situations in which this option is desirable.
The Compensation Start Date formula can be used to determine the start date of compensation awarded using an individual compensation plan.
When setting up a compensation plan, you can select the defined formula after you select Formula as the Compensation Start Date value.
The following contexts are available to formulas of this type:
Database items are not available to formulas of this type.
The following input variables are available to formulas of this type: