Understanding Base Compensation and Budgeting

This chapter provides an overview of Base Compensation and Budgeting and discusses:

Click to jump to top of pageClick to jump to parent topicBase Compensation and Budgeting

Base Compensation and Budgeting enables you to calculate budgets, set up your basic salary planing system architecture and manually apply salary data to worker records.

Click to jump to top of pageClick to jump to parent topicPrerequisites

Before you begin planning worker salaries, make sure control table data and worker job data exists in PeopleSoft Enterprise Human Resources tables.

The following are some optional setup steps to consider:

See Also

Creating Role Users Using a Message Agent

Setting Up and Installing PeopleSoft HRMS

Using Configurable Matrices

Click to jump to top of pageClick to jump to parent topicBase Compensation and Budgeting Business Processes

Base Compensation and Budgeting supports the following business processes.

Click to jump to top of pageClick to jump to parent topicSalary Administration Plans

Using the Base Compensation and Budgeting business process, you can create salary administration plans to assign default compensation packages to workers at the location, job code, or worker level. Use these salary plans to move workers through step increases manually or automatically.

To set up and administer salary administration plans:

  1. Set up salary plans, grades, and steps.

  2. Tie the salary plans, grades, and steps to locations or job codes for defaulting into positions and worker compensation packages.

  3. (Optional) Enter salary raises using the Automated Step Increase process.

  4. View salary structures and generate reports.

Click to jump to top of pageClick to jump to parent topicBase Compensation Budgets and Plans

You can create base compensation budgets for groups of workers by defining increases for pay components. The system calculates the increase for all workers in the group who have the component in their compensation package. You can define budget increases by effective date, effective sequence, action, and action reason and compare multiple proposed budgets for a given group and budget period.

Create your salary increase plan by applying the budgeted increases to workers in the group. Manually adjust individual worker’s raises based on compensation history and review results. Check the variance between the budget totals and the salary plan totals, approve the raises when you’re satisfied, and load them to the workers’ Job Data records where they take effect on the effective date of the budget or the worker’s anniversary date, depending upon how you defined the budget.

To budget and plan salary increases:

  1. Create a salary increase group.

  2. Set up defaults and controls for salary increase budgets and plans.

  3. Create requested budgets, compare budgets, and optionally approve a budget.

  4. Create a salary increase plan by applying budgeted increases to worker compensation and manually adjusting individual increases.

  5. Approve the salary increase budget and plan.

  6. Populate worker records with the approved increases.

Note. Information from the worker’s salary administration plan, such as compa-ratio, job ratio and position in grade, is available for your review while adjusting salary increases for workers in the group. Similarly, each worker’s current review result is also available to help you adjust individual raises.

See Also

Setting Up Base Compensation and Budgeting

Budgeting and Planning Salary Increases

Click to jump to top of pageClick to jump to parent topicMass Salary Increase Processes to Update Salaries

In the Base Compensation and Budgeting Process menu, you’ll find the following two processes to implement salary mass updates:

In addition to these processes, you can use PeopleTools mass change functionality and templates to update salary data.

Click to jump to top of pageClick to jump to parent topicSummary Data and Reports

Base Compensation and Budgeting inquiry pages and reports provide the following types of summary information:

Click to jump to top of pageClick to jump to parent topicBase Compensation and Budgeting Integrations

Human Resources integrates with all the HRMS applications, with other PeopleSoft Enterprise applications, and with third-party applications.

Human Resources shared tables are available to many HRMS applications. In addition, data in many HR tables is available to any PeopleSoft application that is set up to subscribe to the published messages.

Base Compensation and Budgeting integrates with PeopleSoft Enterprise Payroll for North America (sends data).

We cover integration considerations in this PeopleBook.

Click to jump to top of pageClick to jump to parent topicDesigning Your Base Compensation Program

The core of Base Compensation and Budgeting comprises four main phases of operation:

  1. Set up various supporting tables and salary grades and steps.

  2. Create salary plans.

  3. (Optional) Associate salary plans with job codes.

  4. Assign workers to salary plans.

Once your Base Compensation and Budgeting setup is complete, you can apply increases either manually or through mass processing and view salary information for individuals or groups.

Click to jump to top of pageClick to jump to parent topic(FRA) Designing Your Salary Forecasting Process

For organizations in France, Base Compensation and Budgeting functionality allows for additional salary forecasting capabilities by defining the following parameters:

Click to jump to top of pageClick to jump to parent topicAdministering Salary Plans

After completing the salary plan setup process, you associate salary plans to worker job records on the Job Data – Salary Plan page. There must be worker job data in the system before you can apply salary plans to worker job records.