Compensation Management Guide New UI

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  • Pay Grades
  • Go to Admin > Company Settings > HR Setup > Pay Grades
  •  
    • a. Code: Enter a code for the pay grade
    • b. Pay Grade: Enter a name for the pay grade
    • c. Description: Enter an optional description of the pay grade
    • d. Active: Check this box to make the pay grade available to assign
    • e. Effective Pay Grades: Enter the pay type, minimum and maximum rates for this pay grade
    • f. Steps: If there are predetermined steps for this pay grade, the steps can be defined here
  • Save
  • Pay grades can be assigned to jobs under Admin > Company Settings > HR Setup > Jobs, if applicable, or they can be assigned to individual employees under Team > My Team > Employee Information, in the Pay Information widget on the employee’s Main tab.
  • If an employee’s compensation is outside of their assigned pay grade, the system can display a warning or error message.  A warning will display a message when attempting to save the change.  An error will not allow the change to be applied.
  • By default, pay grade violations are treated as Warnings, but this can be edited under Admin > Company Settings > Global Setup > Company Setup > HR Tab

 

Merit Matrix

  • Configuration
  • Go to Admin > Company Settings > HR Setup > Compensation Management > Merit Matrix
    • Select
    • Select the number of segments that each performance review rating should be broken into
      • Ex: 1 segment would mean there will be a <Min, Min-Max, >Max segment
      • Ex: 2 segments would have a <Min, Min-50%, 50.01%-Max, >Max segment
    • Enter a name for the merit matrix and select Add Ratings
    • Select the ratings that should be included in the merit matrix by clicking the checkboxes to the left of each rating, and clicking  
    • Enter % increase amounts for each rating segment
      • Ex from below: employee receives rating of 5 on their performance review, and is currently in the Minimum-25% range for their compensation, then they should receive a 4.5-5.00% increase.
      • If pay range is min $25k, max $100k then the <min would be ~$24,999 and less and the > max would be ~$100,001 and greater
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    • Click  

 

Compensation Cycles

  • Configuration
    • Go to Admin > Company Settings > HR Setup > Compensation Management > Compensation Setup
    • Select Configure the compensation cycle settings.
      • a. Name: Enter a name for the compensation cycle (Ex. 2017 Annual Review)
      • b. Description: Enter an optional description of the cycle
      • c. Company EIN: Displays the selected EIN, if it is a multi-ein company
      • d. Status: By default, this will show as “Budget” until the cycle’s open date.
      • e. Active: Check this box to allow the cycle to be used
      • f. Type: Select the type of compensation that will be updated using this compensation cycle.  Currently there is only one option, “Base.”
      • g. Cycle Manager: Select a manager who is responsible for this cycle
      • h. Pay Change Reason: Select a pay change reason for changes relating to this compensation cycle.
      • i. Workflow: Select the workflow for this cycle.
      • j. Can Exceed Budget: Check this box to allow the cycle to exceed the defined budgets.
      • k. Pay Change Types: Define the pay change types that will be allowed in this cycle (Ex. Merit, Promotion, Job Change) 
    • Configure the compensation cycle dates 
      • a. Cycle Dates Type:
        • Common Date = all employees receive adjustments at the same time
        • Anniversary Date / Anniversary Month = based on hire date or most recent job start date
        • New Hire / New Job = based on hire date or most recent job start date, but only happens once.
      • b. Open Date: The date when the cycle should begin (when managers should be able to enter proposed pay changes for their employees). This date cannot be changed after it is saved.
      • c: Close Date: The date when the cycle should end (changes will no longer be allowed)
      • d. Reference Date Type: Select the date that pay changes should be based upon. (Ex. Hire Date)
      • e. Pay Change Effective Date Type: Select the date that pay changes should be applied.
        • Day in Following Month After Reference Date: Allows you to select a specific day of the month following the reference date (Ex. 1st of the month following the Hire Date)
        • End of the Month After Reference Date
        • On Reference Date:
    • Configure the compensation cycle criteria
      • Filter for the employees who should be included in the cycle.  If no filters are selected, all employees will be included.
    • Configure the performance reviews settings, if performance review results will affect the compensation amounts.
      • Select a merit matrix for this compensation cycle. 
      •  
        • NOTE: If you add a performance review profile, the merit matrix will be a required field and you won’t be able to save without one being assigned. If you do not have a merit matrix built, remove the performance review profile and then you can save. Then click the merit matrix link to create a new matrix.
        • Review Ratings are required in order for a merit matrix to be completed
      • Add the performance review profile(s) to include in this cycle
    • Select
      • Confirm that the correct employees have been brought into the compensation cycle, based on the filters applied in the Compensation Cycle Criteria widget.  
    • Go back to the compensation cycle. Employees can be manually added/removed by selecting
    • Add budget information
      • Select  and then  
      • Select to bring in the eligible wages for all employees included in the cycle.
      • Enter an overall budget % or $ Amount for each Pay Change Type entered in the compensation cycle widget. Entering a percentage will automatically fill in the dollar amount, and vice versa.
      • Select
        • This will calculate the budget amount each manager is allotted for their employees, based on the percentage above.
      • Individual managers’ budgets can be adjusted by selecting the manager from the list on the left.  Note: selecting “Update Budget” after making a manual adjustment will reset all of the individual manager budgets to the default amount or percent.  Individual manager adjustments should be made after all adjustments to the overall budget amounts are complete.
  • Proposing Pay Changes
    • Once the compensation cycle is open, Managers can enter proposed pay change amounts for their employees.
    • Go to Team > Compensation > Worksheet
    • Select the compensation cycle to edit
    • The manager’s overall budget for increases will be displayed at the top of the worksheet, and the list of employees assigned to the compensation cycle will be displayed at the bottom.
    • Information about the employee’s current pay, pay grades, and performance review scores can be used to determine the increase amounts.  Select the  icon to view the performance review for that employee.  
    • Enter the proposed increase for each employee and select Save.
    • Notes can be entered by selecting the  icon next to the employee’s name.
    • Proposed pay changes can be submitted for approval individually, or all at once.  Select the checkboxes for the pay changes you want to submit, and select  
  • Approving and Finalizing Pay Changes
    • Compensation Proposal requests will be listed in the approver’s To Do items.  
      • Select to view a comparison between the employee’s prior pay rate and proposed pay rate.
      • Select icon to view the complete proposal worksheet for that employee’s manager
      • Select  icon, if applicable, to view any notes provided by the manager
      • Select icon, if applicable, to view the employee’s performance review
    • Once approved, Compensation Proposal requests will be listed in the finalizer’s ToDo items.  
    • The finalizer will have the ability to override the final amount and effective date upon selecting “Finalize,” and the compensation amount will update automatically in the employee’s profile.