Overview

Modify or view details about fixed compensation plans.

General

Modify or view details about the selected compensation plan.

Range utilization matrix

Create or view the steps in a range utilization matrix. The steps in the matrix control impact the amount of a pay increase, depending on where an employee's fixed pay is within their compensation range. This matrix is used as an option when calculating increases during a process event.

Set up compensation

Select a reference point setup to create a new compensation structure for the plan, or create a new structure based on an existing one.

Note
Any changes that you make to an existing structure will be reflected in all the plans where this compensation structure is used.

Compensation

View or maintain the compensation structure or pay rate ranges.

Plan

Enter identification for the fixed compensation plan.

Type

Select the type for the plan. The type determines the manner in which pay relative to the compensation structure is handled.

Note
It is important to fully understand these types of plans before selecting the appropriate one.

Market price indicator

Select this check box for Bandtype plans only, in order to use the market price ranges entered for each individual job, in addition to the broad compensation ranges entered for this compensation plan.

Out of range tolerance

Select a tolerance to determine how pay rate changes are handled for employees attached to the plan.

• None: No restrictions.

• Soft: No restrictions, but a message is displayed if the pay rate is below the minimum or above the maximum of the compensation range.

• Hard: Forces you to stay between the compensation range minimum and maximum and automatically adjusts low or high amounts to conform to the range.

Currency

Select a currency for the plan.

Pay frequency

Select the pay frequency for the fixed compensation plan.

Hire rule

Determines the basis of the merit increase.

• None: The employee receives a full merit increase, regardless of the hire period within the cycle period. That is, the calculation is based on the full year.

• Percent: The employee receives a merit increase based on the period from the hire date and up until the ending date used in the cycle setup for the calculation.

Enable recommendation

Select this check box to indicate that the calculated guideline results of the automatic event process can be overridden. If you allow process overrides, you will allow pay recommendations outside the guideline amounts, based on a manager's input.

Compensation structure

View the compensation structure that applies to the plan. The compensation structure is based on the reference point setup and the levels that you select for the plan.

Control point

Select a reference point as a control point.

Note
The range "midpoint" is most commonly used, but any reference point is allowed. The control point indicates the desired pay rate for a job covered by the current plan.

Utilization percent

Lists selected points of range utilization for different modifiers to budgeted increase amounts. The lower an employee is in their range, the greater the resulting pay increase; the higher they are in their range, the lower the resulting pay increase. Used as an option during compensation process events to move employees toward the middle of their range over time.

Increase modifier percent

A factor applied to a budgeted increase amount, as modified by performance and other criteria during a process event, to move employees toward the middle of their range over time