Compensation and Benefits
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      2. Core HR: People
      3. Compensation and Benefits

      Compensation

      In Cezanne HR the term Compensation specifically refers to employee Salary and Bonus payments. There are four screens available to help you manage and record this type of information:

      • Bank Details
      • Current Comp Details
      • All Comp Details
      • Comp Proposals

      Note:

      • The Compensation and Benefits screens contain a non-mandatory link to Employment (Employment ID); it is recommended that unless an employee has multiple concurrent employments, this is left blank. This could make certain operations on the Employment easier to accomplish. For reporting purposes, a blank Employment on these screens is assumed to be associated with the employee's primary employment.

      This article explains how Compensation is managed in Cezanne and contains the following sections:

      1. Bank Details
      2. Current Comp Details and All Comp Details
      3. Adding a New Compensation Record
      4. Compensation Record Calculations
      5. Error Messages

      1. Bank Details

      1. Bank Details

      The Bank Details screen is used to store employee bank details, e.g. Bank Name, Sort Code and Account Number. This screen also allows you to save a history of records, so you can easily keep track of changes over time.

      Note:

      • You can hold information about more than one current bank account for each employee if you wish.

      To enter Bank Details, navigate to: People >> Personal Information >> Bank Details:

      2. Current Comp Details and All Comp Details

      2. Current Comp Details and All Comp Details

      These two screens are identical except that the Current Comp Details screen only displays an employee's current compensation records while the All Comp Details screen displays all saved records (historic, current and futuristic).

      Note:

      • You can use both screens to Add, Edit and Delete records.
       

      3. Adding a New Compensation Record

      Adding a new Compensation record is different depending on the type of Compensation record you want to add.

      For more information about the available options, see: Compensation Type.

      To add a new Compensation record, first add a Compensation Item, then follow the steps below for your selected Compensation Type:

      Standard

      1. Navigate to: People >> Compensation >> Current Comp Details.

      2. Click Add New.

      3. Select a Comp Item value from the available drop down. The Pay Period will automatically update to show you how often the payment will be made in each year. (see Comp Items section for further details).

      4. Select a Payment Currency; the Base Currency field will be filled in according to your company settings.

      5. Enter a Current (Actual for Period) value, expressed in the Payment Currency.

      6. Alternatively, a target amount may be entered for Comp Items such as bonus. Enter the value in the Target field, at a later date the Current amount could also be entered, for example when a bonus is assigned.

      7. Click Save.

      Percentage Only

      1. Navigate to: People >> Compensation >> Current Comp Details.
      2. Click Add New.
      3. Select a Comp Item value from the available drop down. The Pay Period will automatically update to show you how often the payment will be made in each year. (see Comp Items section for further details).
      4. Enter a Percentage value.
      5. Select a Payment Currency.
      6. If you want to set a target, enter the target percentage in the Target field. This may be used for items such as a bonus that is dependant on meeting a certain target.
      7. Click Save.

      Percentage of another Compensation Record

      1. Navigate to: People >> Compensation >> Current Comp Details.
      2. Click Add New.
      3. Select a Comp Item value from the available drop down. The Pay Period will automatically update to show you how often the payment will be made in each year. (see Comp Items section for further details).
      4. Enter a Percentage value.
      5. Select which record this should be Based On.
      6. The other fields will calculate using the information you entered.
      7. A target amount can also be entered for Comp Items such as bonus. Enter this value in the Target field.
      8. Click Save.

      Note:

      • You can't base a 'Percentage of another Compensation Record' record on a 'Percentage Only' record.

      Pro Rata using FTE Ratio

      1. Navigate to: People >> Compensation >> Current Comp Details.
      2. Click Add New.
      3. Select a Comp Item value from the available drop down. The Pay Period will automatically update to show you how often the payment will be made in each year. (see Comp Items section for further details).
      4. If the employee has an active Working & Scheduled record on the Effective From date, the FTE Ratio field should be pulled through automatically. If they have no active record on that date, you should enter an FTE Ratio here to calculate the salary.
      5. Select a Payment Currency; the Base Currency field will be filled in according to your company settings.
      6. Enter a Current (Actual for Period) value, expressed in the Payment Currency.
      7. The Pro Rata fields will calculate using the information you entered.
      8. A target amount can also be entered for Comp Items such as bonus. Enter this value in the Target field.
      9. Click Save.

      Note:

      • If you change an employee's FTE Ratio on the Working & Scheduled Time screen, the FTE Ratio field on the Compensation Details record won't be overwritten, even if the field is blank.
      • To recalculate compensation records after a FTE Ratio change on the Working & Scheduled Time screen, clear the FTE Ratio field on the Compensation Details screen and save the record.

      Note:

      • There is a notification available in Cezanne, based on the Next Review date field, to alert certain users when a Compensation Review is approaching. For more information, see: Compensation Review Notification.

      4. Compensation Record Calculations

      Depending on the values you enter in the section above, the other read-only fields on the screen will be automatically updated to provide you with other useful compensation amounts e.g. Change from Previous.

      A description of these fields and exactly how they are calculated is given below:

      • Current (Annual): The value is calculated as:

      (Current (Actual for Period) x Number of Periods in Year)

      • Change from Previous (Actual for Period): This value shows us the difference between the previous salary (for the period) and the new one, and it is calculated as:

      (Current (Actual for Period) - Current (Actual for Period) of previous record of the same Comp Item)

      • Change from Previous (Annual): This value shows us the difference between the previous salary (for the year) and the new one, and it is calculated as:

      (Change from Previous x Number of Periods in Year)

      • Target % Achieved: If you enter a Target amount then this field will calculate what percentage of this value was achieved by the Current payment:

      ((Current (Actual for Period) / Target) x 100)

      • When the One-off checkbox is ticked, the annual amount will be the same as the corresponding actual amount as there is no assumption that the payment would be repeated throughout the year.

      Note:

      • Each of the values in Payment Currency is also converted into the Base Currency.
      • The conversion from Payment Currency to Base Currency (if applicable) is made according to the conversion rate active on the Effective From date.

      5. Error Messages

      Error 106338

      'For the Compensation Type 'Pro Rata using FTE Ratio', you must specify Actual for Period and Payment Currency Code.' (106338)

      To fix this error:

      • Enter a value in the Actual for Period field.

      Error 106343

      'You cannot change to a 'Percentage Only' or 'Percentage of another Compensation Record' Compensation Type as other compensation records are based on this record.' (106343)

      To fix this error:

      •  Select either 'Standard' or 'Pro Rata using FTE Ratio' as Compensation Type.

      Warning 106335

      'Update the FTE Ratio manually as there is no Working Time Pattern record at the Effective From date.' (106335)

      To fix this warning:

      Either:

      • Enter an FTE Ratio in the field on the Compensation Details record.

      Or

      • Add a Working & Scheduled Time record for the employee at the Effective From date and re-add this Compensation record to automatically calculate. For more information, see: Working & Scheduled Time.