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Use this form tocreate fixed compensation plans of the , , and types.

When you set up the compensation plan, you create a compensation matrix that is composed of a set of ranges and a set of levels, and then you add the appropriate pay rates to create a compensation structure.

You associate a compensation plan with an employee in the form.

Employees are limited to a set of plans through eligibility rules, most of which derive from criteria associated with an employee's position and job.


In a type compensation plan, the compensation structure might look like the information displayed in the following table.


Range 1

Range 2

Range 3

Minimum pay range

Medium pay range

Maximum pay range

Level 1




Level 2




Level 3




Level 4




Task that uses this form

Navigating the form

The following tables provide descriptions for the controls in this form.




Modify or view details about fixed compensation plans.

Modify or view details about the selected compensation plan.

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.




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 Note

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

View or maintain the compensation structure or pay rate ranges.




Enter identification for the fixed compensation plan.

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

Note Note

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

Select this check box for type 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.

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

  • : No restrictions.

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

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

Select a currency for the plan.

Select the pay frequency for the fixed compensation plan.

Determines the basis of the merit increase.

  • : 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.

  • : 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.

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.

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.

Select a reference point as a control point.

Note 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.

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.

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