Compensation Planning Module

There are three types of Compensation Plan that you can choose from, depending on what you want to include in the review:

• Salary
• Bonus
• Salary and Bonus

The Owner of the Compensation Plan has full permission over the whole plan, with the ability to view and Sign-Off the Plan once all Review Groups have submitted their Worksheets. The Owner can be changed to any Active HR Professional or Restricted HR User within your system.

An important decision to make when creating your Compensation Plan is the Budget Type. This will determine how your Budget is calculated. It can either be calculated automatically using a percentage of each group member's salary or you can manually enter a budget amount for each Review Group that will add up to your Overall Budget.

As an advanced feature, Suggested Ranges are percentages based on your chosen criteria. They can be added to provide additional information during the Review stage of your Plan. For example, you can suggest a salary increase based on Performance ratings: Low Rating between 3% and 5% or High Rating between 8% and 10%. 

As an advanced feature, Benchmarks can be added to use internal or external data to create salary bands based off of the market salary for an employee's job or position.

The Group Hierarchy determines who will be the Group Reviewer and who will be Members of each Group. 

The Hierarchy can be set up using one of three available options:

• Build Manually - You can select the Reviewers and Members for each Group individually, one group at a time. This allows you to create your own Group Hierarchy without having to strictly follow any of the company hierarchical structure.
• Build from Person - You can select a person within the organisation that you want to build a hierarchy from. Once you select the person, the system will populate groups and member data based off the direct and indirect reporting lines to that person using the selected 'Review Group Hierarchy' reference date, that was set on the Plan Details screen.
• Build from Org Unit - You can select an Org Unit within your organisation that you want to build a hierarchy from.  Once you select the org unit, the system will populate groups and member data based off the reporting structure of that org unit on the selected 'Review Group Hierarchy' reference date, that was set on the Plan Details screen.

Deadlines allow you to establish clear time-frames and help prevent delays during the Review Process.

In the Compensation Planning module, deadlines can be set up by selecting the date that you want the plan to be completed by and the number of days each Review Tier should receive.

The system will then automatically calculate when the Review needs to start to ensure you meet the overall deadline. 

Each Review Group has a budget, which contributes to the overall budget for the Compensation Plan. If you selected to set the budgets manually, then you need to go through each group and enter the budget manually. If you selected to calculate using percentages, you can set up percentages based on certain criteria and the system will automatically work out the budget based off the percentage increase for each member's projected salary increase.

Once you start the Review Process, E-mails will be sent to your chosen Reviewers outlining when their group must be completed and submitted by.

An inbox task will be available once any groups below them in the hierarchy have been submitted to allow the reviewer to complete their Worksheet. This gives reviewers a chance to verify and validate compensation details for their group before they submit their review.

If they have any groups below them in the hierarchy, the reviewer will also be able to check and review any of the award decisions from the groups below them as part of their review.

Once all Reviewers have completed and submitted their Worksheets, an E-mail will be sent to the Owner of the Compensation Plan informing them that it is ready for their final review before sign-off.

If happy with the completed Plan, the Owner will then need to Sign-Off. Once signed-off, the Compensation Plan will be completely locked down.