Defining Compensation Cycles

Funding Period Begin and Funding Period End

Enter the beginning and ending dates of the funding cycle. The Funding Period Begin date must be greater than the Funding Period End date. Typically funding periods are a year in length.

Period Description

Enter a description for the funding period.

Cycle Status, Last Update Date/Time, and Last Update User ID

These fields display the status of the cycle, the date that the cycle was last updated, and the user ID of the person who last updated the cycle.

Group ID

Select the group that defines the population of employees for which the cycle applies.

Tree Set ID

If the tree name is based on a setID (for example, department, location, and so on), select one using the Lookup button. If the tree is not based on a setID, this field is not required.

Tree Name

Select the tree that is used as the basis for structuring the organizational hierarchy within the Manager Self-Service component.

Tree Effective Date

Select the effective date of the tree you selected in the Tree Name field.

Default Manager Role

Select a value from the drop-down list menu to indicate the hierarchy that you want the cycle to be based on. Possible values (depending on the tree and effective date specified) include:

• Position Incumbent (Rpts To) (reports to)

• Department Position Nbr

• Manager ID

• Supervisor ID

• None (default value)

Tree Node Label

Enter a description for the tree node associated with the compensation cycle.

Planning Currency

Select the currency code that you want to use from the currency code table.

Conversion As Of Date

Enter the date that you want the system to convert the currency that you are using for this cycle. The underlying market rate tables must be fixed from the point that compensation is calculated within the cycle.

Rate Type

Select the rate type that you want to use for the cycle.

Market Rate Index

Select a value from the Rate Index table to indicate the index you want the system to use to calculate the conversion of the currency.

Source Data

If you are integrating information from eCompensation Manager Desktop with a Performance application, select the appropriate application: Values include:

• None

  If you select None, the rest of the fields in this section become unavailable for entry.

• Other

  Note: If you select Other, it is the your responsibility to populate the PS_WCS_EP_APPR table with the performance data that you want to use.

• PeopleSoft ePerformance

Period Begin Date and Period End Date

Enter the date range for performance documents, if the selected source data is PeopleSoft ePerformance or Other.

Document Type

Select the appropriate performance document type, if the selected source data is either PeopleSoft ePerformance or Other.

Use Rating

Select the use rating that you are using in your ePerformance application, if the selected source data is PeopleSoft ePerformance or Other.

Publish Update Transaction

Select to indicate that salary and award update transactions need to be published, rather than updated directly in employees’ job and award data within the newer HCM environment.

When selected, update transactions are loaded into a staging table and are published to the older HCM environment by running a process. From within the older system, another process runs to update employees’ job and award data information. Updates in the older system trigger sync transactions to the newer system and keep the two in sync.

Increase Effective Date

Enter the date when you want any proposed compensation changes to be effective. This date must be on or after the Funding Period Begin Date.

New Hire Eligibility Date

Enter the date to determine new hires’ eligibility for compensation changes. Employees who were hired after this date are ineligible for merit increase. This date must be earlier than the Funding Period End Date.

The system is designed to allow customers to filter out employees that have not worked for a minimum period of time prior to the funding period to be considered eligible. For example, you might have a business policy that employees must be employed for at least 6 months to be considered eligible for any form of an increase.

Job Change Type

Select the type or types of employee job change you want the system to track after the snapshot process has run and the cycle is in the Open status.

Available values are:

Active to Inactive Status - HR status of employee is changed to inactive, for example, employee is terminated.

Currency Code - employee’s salary currency code is changed.

Salary - employee’s salary is changed.

Exclude

Select this option for a job change type if you want the Job Change process to zero out funded and proposed amounts for employees who had that job change recorded during the open cycle.

If this option is not selected, the Job Change process doesn’t do anything to the funded and proposed amounts for employees who had that job change during the open cycle. The manager, after receiving the alert, can then decide what to do with the amounts, for example, reallocate them to other direct reports.

Rate Code and Description

Select the rate code that you want to use for changes to compensation. The system automatically fills in the description after you select the rate code.

Plan

Enter a description for the salary plan that you want managers or administrators to see on the Allocate Compensation page or Manage Cycle Transactions page.

Plan Sequence

Enter a number to indicate the order in which you want the system to display salary plans within the self service pages for the compensation cycle.

Rounding Rule

Select the rounding method that you want to use for the salary plan.

Use Configurable Matrix

Select this check box if you plan to use a configurable matrix to calculate funding information. If you select this check box, the system makes the Funding Percent, Minimum Percent, and Maximum Percent fields unavailable for entry.

Matrix ID

Select a configurable matrix that you want to use to drive the funding calculation.

Only matrices of the BASECOMP type are available for selection.

See Defining Salary Increase Guidelines Using a Configurable Matrix.

Funding Percent

Enter the total funding percent by which you would allow a manager to adjust salaries in their department.

Minimum Percent

Enter the minimum percent by which you would allow a manager to adjust an employee's salary.

Maximum Percent

Enter the maximum percent by which you would allow a manager to adjust an employee's salary.

Discretionary

Select this check box if you want to enable managers to override the calculated funding amount.

Default Proposal to Funded

Select this check box to set the default proposal to the calculated funded amount.

Use Prorate Exception Table

Select this check box if you want to use information from the Prorate Exception (WCS_PRO_EXC_TBL) table in the build process. If there is no entry in the Prorate Exception Table, the build process sets the prorate factor to 1.

Proration Rule

Select the proration rule that you want to use for salary increases or adjustments. The values that you are able to select come from the Prorate ID table (WCS_PRORATE_ID).

Earliest Eligible Start Date, Full Period Start Date, and Eligible End Date

Enter the begin and end dates to which the proration period applies. These fields are required if you specify a proration rule. Typically, this period is for the year prior to the funding period.

See Understanding Proration Calculation Rules.

Sequence

Enter a number to control the order that you want the system to load the action reason for the plan when updates are run.

Action

Select an action from the Action table.

Reason

Select a reason from the Action Reason table.

Display As

Enter a description for the action that you want managers to see when they access the Manager Self-Service page.

Default

Select the action that you want to use as a default on the Manager Self-Service page. You must select only one action for the plan.

Variable Compensation Plan

Select a plan from the Variable Compensation Plan table.

You must specify at least one variable compensation plan if the selected plan type for the cycle is Variable Comp Only.

Payout Period

Select a payout period from the Variable Compensation Payout Period table.

Award Type

Select an award type. Values include:

• Cash

• Non-Cash

• Stock

The system derives these default values from the variable compensation plan types:

• Cash: Discretionary (D), Goal Sharing (G) or Profit Sharing (P).

• Stock: ISO (I), NSAR (K), NQ (Q), RSA (R) or ISAR (S).

• Non-Cash: Non-Monetary (N) or Other (O).

Display As

Enter a description for the award plan that you want managers or administrators to see on the Allocate Compensation page or Manage Cycle Transactions page.

Funding Calculation

Select the type of funding calculation that you want the system to use for the variable compensation plan. Values are VC Calc and Manual.

Discretionary

Select this check box if you want to enable managers to override the calculated funding amount. If you selected Manual as the Funding Calculation method for the VC plan, you must select this check box.

Default Proposed

Select this check box if you want the system to default the plan to the proposed amount to the calculated variable compensation amount or the manually funded amount for each employee. If you do not select this check box, the system displays 0.00 as the proposed amount.

Rounding Rule

Select the rounding rule that you want the system to use to calculate award amounts. If you do not specify a rounding rule, the system sets all rounding of the funded and proposed amounts to 2 decimals.

Enable Currency Conversion

Select to enable currency conversion on the Allocate Compensation (or Manage Cycle Transactions) page.

Enable Indirect Report Updates

Select to enable updates to information for indirect reports on the Allocate Compensation (or Manage Cycle Transactions) page.

When this check box is selected, the system provides updates to employee information that is one level down from the node to which the manager has Submitter role access.

Display Award History

Select to display award history on the Allocate Compensation (or Manage Cycle Transactions) page.

Enable Notepad

Select to enable the notepad on the Allocate Compensation (or Manage Cycle Transactions) page. The notepad is used primarily for manager comments.

Enable Role Delegation

Select to enable a manager to delegate their compensation role responsibilities to another manager or employee.

Enable Approvals Workflow

Select to process compensation proposal approvals using the Approval Framework.

If this option is enabled, approvers approve, deny, or push back compensation proposals on the Pending Approvals - Allocate Compensation Page or Approve Compensation Proposals page (WCS_ECM_AWE_HOME). Approval transactions are created and handled by the Approval Framework. When a proposal is approved or denied, only the group node status is updated to CNF for Confirmed or PSB for Pushed Back, and notifications will be sent out by the approvals workflow engine for the proposal. When this form of approval is used, an approver’s approval action is independent of all other transactions. The action does not cascade down to other lower-level proposals.

With this option, the Confirmer role is not available in the Access Type drop down list box on the Administer Cycle Roles page.

If this option is not enabled, confirmers approve, deny or push back proposals by clicking the Confirm or Push Back buttons on the Allocate Compensation page. PeopleCode is triggered to update the group node status and generate a compensation alert that can be viewed on Manager Dashboard (if configured). When this form of approval is used, a Confirmer role is typically assigned to a high-level user (for example, a department head) because the system cascades the confirmer’s approval action of a transaction down to all its lower-level compensation proposals.

Process ID and Definition ID

Select the process ID and definition ID that you want to use to generate approval workflow. These IDs are entered on the Setup Process Definitions page (select Set Up HCM, Common Definitions, Approvals, Approvals Setup Center, Setup Process Definitions).

See Setting Up Approval Process Definitions.

Display Type

Select the type of grid that you want to enable columns or fields for the system to display on the Allocate Compensation (or Manage Cycle Transactions) page. The system displays the fields associated with the grid you selected. Values include:

• Awards Grid - refers to the Direct Reports section of the bonus-specific tab (if available).

• Salary Grid - refers to the Direct Reports section of the salary-specific tab (if available).

  Note: This value is not available if the selected plan type of the cycle is Variable Comp Only.

• Worker Detail - refers to the Employee Information section on the Allocate Compensation (or Manage Cycle Transactions) - Direct Reports page.

Field

Displays the name of the field associated with the grid you selected.

Select

Select the check boxes associated with the fields that you want to appear within the corresponding grid on the Allocate Compensation (or Manage Cycle Transactions) page.

Discretionary and Description

Select the text that you want to appear for the field on the Allocate Compensation (or Manage Cycle Transactions) page. The system displays the description to the right of the Discretionary field. If you populate the Discretionary field, the system overrides the Manager Self-Service component with the field label from the corresponding value found in the text catalog.

See Configuring the Text Catalog.