Compensation Student Guide 2015

Oracle Internal & Oracle Academy Use Only
Oracle HCM Cloud:

Compensation
Student Guide
D88697GC20
Edition 2.0 | December 2015 | D94012
Learn more from Oracle University at oracle.com/education/

Authors Copyright © 2015, Oracle and/or its affiliates. All rights reserved.
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Contents
1 Course Overview
Lesson Agenda 1-2
Instructor and Class Participants 1-3
Course Audience 1-4
Course Objectives 1-5
Course Methodology 1-7

Course Materials 1-8
Information Sources 1-9
Course Agenda: Day 1 1-10
2 Oracle Fusion HCM and Compensation: Overview

Lesson Objectives 2-2
Overview: Oracle Fusion Human Capital Management (HCM) 2-3
Manage Compensation 2-5
Analyze Total Compensation 2-8
Demonstration 2-11
Role-Based Access Control 2-12
Role Types 2-13
Role-Based Access: Example 2-15
Security Reference Implementation 2-16
Demonstration 2-17
Separation of Compensation Duties by Job Roles 2-18
Separation of Total Compensation Duties by Job Roles 2-19
Summary 2-20
3 Introduction to the Oracle Fusion Applications User Interface

Oracle Fusion Applications User Interface (UI) 3-3
Simplified UI: Home Page 3-4
Simplified UI: Springboard 3-5
Simplified UI: Infolet Pages 3-6
iii
Simplified UI: Global Area 3-7
Global Area: More Options 3-9
Simplified UI Page: Features 3-10
Desktop UI 3-11
Desktop UI: Layout 3-12
Dashboards 3-13
Welcome Dashboard 3-14
Summary 3-15
4 Define Workforce Structures


HCM Employment Models: Overview 4-3
Employment Models 4-4
Three-Tier, Single Employment Term Employment Models 4-5
Three-Tier, Multiple Employment Terms Employment Models 4-6
Two-Tier, Single Assignment Employment Model 4-7
Two-Tier, Single Assignment with Contract Employment Model 4-8
Two-Tier, Multiple Assignments Employment Model 4-9
Salary Records in Employment Models 4-10
Quiz 4-11
Summary 4-14
5 Define Eligibility Profiles

Defining Eligibility: Overview 5-3
Demonstration 5-4
Managing Derived Factors 5-5
Demonstration 5-7
Planning and Prerequisites for Eligibility Profiles 5-8
Setting the Eligibility Profile Definition 5-9
Defining Eligibility Criteria 5-10
Excluding, Sequencing, Adding, and Viewing Criteria 5-11
Practices 5-12
Quiz 5-13
Summary 5-16
6 Define Elements, Balances, and Formulas

Managing Fast Formulas 6-3
Formula Types and Components 6-4
Formula Components 6-5
iv
Database Items for Formula Types 6-6
Demonstration 6-7
Managing Payroll Elements: Overview 6-8
Element Templates 6-9
Element Component Definitions 6-10
Delivered Elements and Element Templates 6-11
Element Component: Example 6-12
Demonstration 6-13
Element Input Values 6-14
Element Entries 6-15
Element Eligibility Criteria 6-16

Balance Feeds 6-18
Element Classification Types 6-19
Deductions and Deduction Elements 6-21
Voluntary Deductions 6-22
Demonstration 6-23
Compensation Elements and the Employment Model 6-24
Elements and the Employment Level 6-25
Practices 6-26
Quiz 6-27
Summary 6-30
7 Define and Manage Base Pay

Grade Rate: Overview 7-3
Demonstration 7-4
Validating Salary Using Grade Rates 7-5
Practice 7-6
Salary Terminology 7-7
Salary Basis: Overview 7-8
Salary Basis 7-9
Demonstration 7-10
Legislative Data Groups (LDGs) 7-11
Associating a Payroll Element with a Salary Basis 7-12
Payroll Element and Input Value 7-13
Base Pay Frequencies 7-15
Annualization Factors 7-16
Group Discussion: Annualizations 7-17
Salary Components: Overview 7-18
Salary Components 7-20
Grade Rates 7-21
v
Troubleshooting Tips 7-22
Questions to Help Determine Required Salary Bases 7-23
Group Practice 7-24
Practices 7-25
Group Discussion 7-26
Work Areas Used to Manage Base Pay 7-27
Entering and Adjusting Salaries 7-28
Salary Change Approvals 7-30
Demonstration 7-32
Practice 7-33
Editing Salaries in the Integrated Workbook 7-34

Instructor Practice 7-35
Line Manager: Simplified User Interface 7-36
Demonstration 7-37
Manager Resources Dashboard: Compensation (Line Manager) 7-38
Person Gallery: Compensation (Line Manager and HR Specialist) 7-39
Person Management: Manage Salary (HR Specialist) 7-40
Compensation Work Area (Compensation Manager) 7-41
Quiz 7-42
Summary 7-49
8 Define and Manage Individual Compensation

Actions: Overview 8-3
Using Actions with Base Pay and Compensation 8-4
Demonstration 8-5
Individual Compensation Plans: Overview 8-6
Plan Options 8-7
Link Individual Compensation Plans to Workforce Compensation Budget Pool 8-8
Dates, Eligibility Profiles, and Instruction Text 8-9
Plan Access Restrictions 8-10
No Access Restriction 8-11
Options for Restricting Access by Action 8-12
Compensation Plan Allocation Access Level 8-13
Demonstration 8-14
Questions to Help You Design Individual Compensation Plans 8-15
Managing Individual Compensation and Personal Contributions 8-17
Managing Compensation 8-18
Variable Allocation Approvals 8-19
Practices 8-20
vi
Introducing Compensation History 8-21
Configuring Compensation History: Automatic and Manual 8-22
Demonstration 8-23
Quiz 8-24
Summary 8-33
9 Manage Workforce Compensation Plans: Overview

Workforce Compensation 9-3
Key Features and Capabilities 9-4
Compensation Plan: Important Design Choices 9-5

Decision Points 9-6
Demonstration 9-8
Global Settings 9-9
Configuring Global Settings 9-10
Managing Workforce Compensation Approval Tasks 9-12
Demonstration 9-13
Defining Workforce Compensation 9-15
Summary 9-16
10 Configure Workforce Compensation Plan Foundation

Workforce Compensation Setup Tasks 10-3
Managing Compensation Plans 10-4
Demonstration 10-5
Plan Details 10-6
Demonstration 10-8
Plan Eligibility 10-10
Demonstration 10-11
Plan Cycles 10-12
Configuring Plan Cycles 10-13
Demonstration 10-15
Plan Hierarchies 10-16
Demonstration 10-18
Plan Currency 10-19
Demonstration 10-20
Plan Access 10-21
Configuring Plan Access 10-22
Demonstration 10-24
vii
Feedback Survey 10-25
Demonstration 10-26
Practices 10-27
Quiz 10-28
Summary 10-34
11 Configure Workforce Compensation Budgets

Budgeting: Overview 11-4
Budget Pools 11-5

Demonstration 11-7
Budget Page Layout 11-9
Configuring Budget Page Layout 11-11
Demonstration 11-13
Practices 11-14
Summary 11-15
12 Configure Workforce Compensation Worksheets

Compensation Components 12-4
Configuring Compensation Components 12-5
Demonstration 12-7
Performance Ratings 12-8
Demonstration 12-10
Approvals 12-11
Configuring Approvals 12-12
Alternate Approver is Final Approver 12-13
Alternate Approver Precedes Final Approver 12-15
Alternate Approver in Middle of Standard Hierarchy 12-17
Compensation Change Statements 12-20
Configuring Compensation Change Statements 12-21
Demonstration 12-22
Practices 12-23
Worksheet Display: Overview 12-24
Worksheet Display Tab Types 12-25
Worksheet Page Layout 12-27
Summary Sections 12-29
viii
Detail Table Columns 12-31
Configuring Column Properties: Overview 12-32
Configuring Column Properties: General 12-33
Configuring Column Properties: Visibility and Access 12-34
Configuring Column Properties: Default Values 12-36
Configuring Column Properties: Element Mapping 12-37
Other Worksheet Configurations 12-38
Managing Dynamic Columns 12-39
Demonstration 12-41
Alerts 12-42
Configuring Alerts 12-43

Demonstration 12-45
Practices 12-46
Quiz 12-47
Summary 12-55
13 Configure Workforce Compensation Models and Reports

Modeling: Overview 13-4
Configuring Modeling 13-5
Model Allocation Method 13-6
Demonstration 13-7
Reports: Overview 13-8
Configuring Reports 13-9
Demonstration 13-11
Report Dimensions: Overview 13-12
Use of Dimensions in Reports 13-13
Use of Dimensions in Models 13-14
Demonstration 13-15
Report Filters: Overview 13-16
Demonstration 13-17
Practices 13-18
Quiz 13-19
Summary 13-23
14 Validate Workforce Compensation Plans

Validating Plan Setup 14-4
Validation Results 14-5
ix
Starting the Compensation Cycle Process 14-6
Demonstration 14-7
Practice 14-8
Summary 14-9
15 Manage Compensation Models and Budgets

Workforce Compensation Functional Tasks 15-3
Managing Compensation Models and Budgets 15-4
Managing Compensation Models: Overview 15-5
Creating Models 15-6

Demonstration 15-9
Managing Budgets: Overview 15-10
Allocating Budgets 15-11
Demonstration 15-12
Practices 15-13
Quiz 15-14
Summary 15-18
16 Manage Workforce Compensation

Managing Workforce Compensation 16-4
Compensation Plans: Overview 16-5
Worksheet Configurations: Examples 16-6
Managing Compensation Plans 16-7
Workforce Compensation Worksheet 16-8
Viewing Reports and Analytics 16-10
Approving Worksheets 16-12
Generating Compensation Statements 16-13
Demonstration 16-14
Practice 16-15
Quiz 16-16
Summary 16-21
17 Administer Workforce Compensation

Compensation Work Area (Compensation Manager and
Compensation Administrator) 17-4
Global Models: Overview 17-5
x
Creating or Editing Global Models 17-6
Demonstration 17-7
Active Plans: Overview 17-8
Managing Active Plans 17-9
Demonstration 17-10
Administering Workers: Overview 17-11
Eligibility Status 17-12
Administering Workers 17-13
Worker Information 17-14
Budget Information 17-15
Compensation 17-16

Promotion 17-17
Performance 17-18
Status and Hierarchy 17-19
Other Information 17-20
Demonstration 17-21
Administration Reports 17-22
Demonstration 17-24
Running Batch Process: Overview 17-25
Monitor Processes 17-26
Demonstration 17-28
Practices 17-29
Quiz 17-30
Summary 17-35
18 Define Total Compensation Statements

Total Compensation Statements 18-3
Demonstration 18-4
Questions to Help Determine What Content to Include and How to Display
and Format It 18-5
Compensation Items and Source Types 18-6
Displaying and Formatting Compensation Items 18-8
Demonstration 18-9
Practices 18-10
Compensation Items: Group Discussion 18-11
Compensation Categories 18-12
Compensation Category Types 18-13
Category Types: Benefits, Cash Compensation, Savings, and Retirement 18-14
Category Types: Time Off and Stock History 18-15
Types: Custom and Other 18-16
xi
Contribution Type, Unit of Measure, and Level of Detail 18-17
Providing Links and Displaying the Full Detail 18-18
Display Options, Graphs, Descriptive and Supplemental Text 18-19
Hiding Table Columns 18-20
Zero or No-Value Contribution Values 18-21
Graphs 18-22
Descriptive and Supplemental Text 18-23
Demonstration 18-24
Practice 18-25
Compensation Categories: Group Discussion 18-26
Considerations for Determining How Many Different Statement Definitions

Are Required 18-27
Statement Definition Compensation Items and Categories 18-28
Statement Periods 18-29
Statement Options and Denoting Estimated Amounts 18-30
Configuring the Summary Page 18-31
Statement Display Options 18-32
Annual or Periodic Use of Statement Definitions 18-33
Demonstration 18-34
Practice 18-35
Statement Definitions: Group Discussion 18-36
Practice 18-37
Monitoring Processes and Viewing Statements 18-38
Practice 18-39
Quiz 18-40
Summary 18-46
19 Manage Market Data

Market Data: Overview 19-3
Managing Compensation Types 19-4
Managing Supplier Information 19-5
Market Data Workbooks 19-6
Quiz 19-9
Summary 19-11
20 Course Summary
Summary 20-2
xii
1
Course Overview

Copyright © 2015, Oracle and/or its affiliates. All rights reserved.
Lesson Agenda
This lesson provides an introduction to the:

• Instructor and class participants
• Course:
– Audience
– Goal
– Objectives
– Methodology

– Materials
– Agenda
g
Oracle HCM Cloud: Compensation 1 - 2

Instructor and Class Participants
• Who are you?

– Name
– Company
– Role
• What is your prior experience?
– HCM applications
– Oracle Cloud applications

• How do you expect to benefit from this course?

Course Audience
This course is designed for application implementation

consultants, application administrators, and functional users who
are responsible for implementing and managing Oracle HCM
Cloud: Compensation.


Course Objectives
At the end of this course, you should be able to:

• Identify the key concepts of Compensation that determine a
successful implementation
• Review security reference implementation data for
compensation
ti managementt and d describe
d ib key
k security
it
concepts
• Create payroll elements for compensation

• Set up and manage base pay and individual compensation
plans
Note: The Benefits tasks in the Compensation Management offering, as well as most of the
common application configuration tasks, are covered in other related courses.

Course Objectives
• Set up workforce compensation plans, worksheets, and

budgets
• Configure workforce compensation models and reports
• Validate workforce compensation plans
• Create models, publish budgets, and allocate compensation in
workforce compensation
• Administer workforce compensation

• Define total compensation statements
• Manage market data

Course Methodology
Subject matter is delivered through:

• Lecture and slide presentations
• Software demonstrations
• Class discussions
• Hands-on practices


Course Materials
Course content is delivered over five days:

• Student Guide
– All slides presented during lectures
– Student notes with additional information
• Activity Guide
– Hands-on practices


Information Sources
• Compensation documentation is available in the HCM Cloud

Library.
– http://docs.oracle.com/cloud/latest/
– Select Global Human Resources
– Then
Th clickli k th
the Cl
Cloud
dBBooks
k ttab
b
• Specific release 10 guides for this course:
– Security Reference for Oracle HCM Cloud

– Oracle Fusion Applications Compensation Management
Implementation Guide
– Oracle Fusion Applications Compensation Management,
Compensation Guide
– Oracle Fusion Applications Information Technology
Management, Implementation Applications Guide
Use the Fusion Applications category to see documentation for Oracle Fusion Cloud
applications.

Course Agenda: Day 1
• Course Overview
• Oracle Fusion Compensation and Security: Overview
• Getting Started
• Define Workforce Structures
• Define Eligibility Profiles
• Define Elements, Balances, and Formulas (Start)


• Define Elements, Balances, and Formulas (Continue)

• Define and Manage Base Pay
• Define and Manage Individual Compensation


• Manage Workforce Compensation Plans: Overview

• Configure Workforce Compensation Plan Foundation
• Configure Workforce Compensation Budgets
• Configure Workforce Compensation Worksheets


• Configure Workforce Compensation Models and Reports

• Validate Workforce Compensation Plans
• Manage Compensation Models and Budgets
• Manage Workforce Compensation
• Administer Workforce Compensation


• Define Total Compensation Statements

• Manage Market Data


2
Oracle
O l FFusion
i HCM and d
Compensation: Overview

Lesson Objectives
After completing this lesson, you should be able to:

• Identify the key processes and concepts of Compensation
• Describe how to find contextual user assistance and use the
Oracle Fusion Applications help system
• Explain how role-based access secures data in Oracle Fusion
Human Capital Management (HCM)
• Explain how Compensation separates duties by job role


Overview: Oracle Fusion Human Capital Management
(
(HCM))
Oracle Fusion HCM covers the following three primary business
processes of managing human capital
Oracle Fusion Human Capital Management
Global Payroll Reputation
Global Human Global Payroll
and g
Management
Resources Interface
Workforce L
Localizations
li ti
Deployment
Workforce Absence
Time and Labor
Predictions Management

Workforce Career
Talent Performance Goal Succession
Development Review Management Management Management Development
Compensation Total
Compensation Benefits Compensation
Management Statement
Fast Formula
Span Business Profile Management
Processes
Workforce Directory Management
Workforce Deployment
The Workforce Deployment business process enables you to align resources and people with
business objectives. You can also enter and maintain information related to people,
employment, and work structures. For example, Oracle Fusion Global Human Resources
enables organizations to maximize worker value. This process also entails localization of the
Oracle Fusion Human Capital Management application, including setup, processing,
monitoring, internal and external integration touch points and reporting.
Workforce Development
The Workforce Development business process enables you to evaluate and develop the
workforce based on organizational goals and critical skill gaps. It includes talent reviews,
performance, goal, succession management and career development.
Compensation Management
The Compensation Management business process enables you to strategically plan, allocate,
and communicate compensation.
The process also enables improved benefits support and analysis while reducing overall
costs. It includes compensation, benefits, and total compensation statement.

Span Business Processes
The Span Business Processes features include:
• Fast Formula: Enables you to review predefined formulas and create new ones to
validate or calculate data for benefits,
benefits human resources,
resources absences,
absences and payroll
payroll.
• Profile Management: Provides a framework for developing and managing talent
profiles that meet your industry or organizational requirements. Profiles summarize the
qualifications and skills of a person or a workforce structure such as a job or position.
• Workforce Directory Management: Enables you to maintain a directory of workers,
contingent workers, and non-workers in the enterprise.

Manage Compensation
Attract, motivate, and retain talent by strategically planning,

allocating, and communicating compensation.

Manage Compensation
business process main
activities
Manage Base Pay

• Manage salary basis definitions and update worker’s base salary.
• Maintain the definition of the salary basis that
that, when linked with a worker’s
worker s salary
salary,
specifies the:
- Payroll input details for the worker’s base pay earnings
- Duration for which the salary is quoted
- Factor used to annualize base salary
• Configure the salary basis with optional components to enable managers and
compensation professionals to attribute base pay adjustment amounts or percentages to
different purposes.
• View and update worker’s salary basis and adjust base pay by adjusting:
- Amount
- Percentage
- Compa-ratio
- Other salary factors
factors, such as range position
position, quartile
quartile, or quintile
• View salary history, as well as graphical analysis of current and new salary.

Manage Individual Compensation
• Define plans that enable:
- Managers to allocate compensation to individual workers
- Workers to manage their own voluntary deductions
• Plans provide enrollment choices.
Example: Options for each vehicle make and model in a car allowance plan
• Managers can view a worker’s compensation history to:
- Help determine if an award is deserved
- View past award amounts
• Using the plans, managers can:
- Award ad hoc bonuses, allowances, and other compensation
- Initiate and update recurring payments

Manage Personal Contributions
Enroll in company-sponsored voluntary deductions, such as savings and charitable
contribution
co t but o p plans,
a s, managing
a ag g you
your o
own e
enrollment
o e ta and
d co
contribution
t but o e elections.
ect o s
Manage Compensation Budgets
• Keep compensation awards in line with the company’s financial goals and targets by
ensuring manager allocations stay within their defined budget amounts.
• Manually calculate budget amounts or automatically determine budget amounts using a
model.
• Publish budgets to line managers to:
- Distribute budgets down the reporting hierarchy
- Allocate budget amounts at the worker level
• Use administrative budgeting to enable managers to award compensation within their
allocated budget amounts.
• (Optionally) determine budget amounts offline by downloading budget details to a
spreadsheet.
Administer Workforce Compensation
These tasks are performed by users within the Compensation department.
• Manage worker data by changing assignment data effective for the current plan cycle
only.
• Override line manager allocations, job changes, and performance ratings.
• Update plan data
data.
• Create and manage models for use by line managers or administrators to distribute
compensation directly to workers.
• Maintain access to plans from the watch list.
• Run processes to initiate a compensation cycle, transfer data to the HR application, and
refresh HR data.
• Analyze plan results
results.

Manage Workforce Compensation
These tasks are performed by line mangers, or Compensation department users acting as a
proxy line manager.
• Allocate one or more types of compensation manually or automatically for a group of
workers on a focal, anniversary, or periodic basis.
• Promote and rate worker performance while awarding compensation.
• (Optionally) determine compensation amounts offline by downloading details to a
spreadsheet.
• Use a model to automatically calculate and allocate compensation to workers based on
selected criteria.
• Generate company-configured compensation change statements (different from total
compensation statements) to notify workers of a:
- Compensation award

- Job change
- Performance rating assignment
• Analyze proposed changes for:
- Equity among peer groups and by manager
- Alignment with targets
- Pay for performance strategies
• Review and approve work of subordinate managers.
• Quickly process and transfer approved data to the core HR application.

Analyze Total Compensation
• Maintain and analyze a statement that communicates to

workers:
– Compensation
– Rewards
– Benefits
B fit
• Analyzing total compensation involves:
– Maintenance and generation of statements by the

compensation administrator
– Viewing and analyzing statements by:
— Compensation manager
— Individual workers
— HR specialists

Analyze Total Compensation

Analyze Total Compensation business process main activities
• Define and manage the design, content, and delivery of a statement that communicates
compensation, rewards, and benefits to workers.
• Thee Total
ota Compensation
Co pe sat o State
Statement
e t can
ca include:
c ude
- Compensation often overlooked by workers (examples, fringe benefits or perks)
- Company contributions towards health and welfare benefits
- Value of stock grants and paid time off
• Define compensation items that represent:
- Actual or estimated amounts paid to workers
- Costs inc
incurred
rred by
b the company
compan
• Arrange compensation items into categories, such as:
- Cash compensation
- Base pay
- Benefits
- Company stock
• Display category details on a single page or enable recipients to drill to details.

• Configure optional:
- Graphical displays of data
- Worker instructions
- Supplemental information (examples,
(examples compensation policies or benefit plan
details)
• Define periods for which statement data is valid and customize an optional welcome
message for each period.
• Generate and view new statements, purge unneeded statements, and monitor
processes with summary and detailed online reports.
- Recipients can view and print their statements while the statement is available for
access.

Demonstration
Exploring Oracle Fusion Applications Help

Using the activity guide, your instructor does the specified demonstration.

Role-Based Access Control
Security in Oracle Compensation is role based, where roles

control who can do what on which data.
Who? A role assigned to a user

A function that users with the role can perform
What?
Which Set of data that users with this role can access
Data? when performing this function

Role Types
• Abstract Role
– Defines a worker’s role independently of the job
• Job Role
– Defines the job that a worker is hired to perform
• Data Role
– Combines a worker’s job with data instances that the role can
access, such as all workers in a legal employer

• Aggregate Privilege
– Combines a single function security privilege with related data
security policies
• Duty Role
– Combines multiple function security privileges with related data
security policies
Abstract Role
• Defines a worker’s role in the enterprise independently of the job that the worker is hired
to do
• These abstract roles are standard in Oracle Fusion HCM:
- Line manager
- Employee
- Contingent worker
Job Role
Th jjob
The b that
h a worker
k iis hi
hired
d to perform
f
Note: You do not assign job roles directly to users. Instead, you create data roles for job roles
and assign the data roles to users.

Data Role
A data role is a combination of:
• A worker’s job, such as Compensation Manager.
• The
Th d data
t iinstances
t th
thatt users with
ith th
the role
l can access.
You identify the data instances, such as all workers in a legal employer, in a security profile and
include the security profile in the data role.
Aggregate Privilege
An aggregate privilege is a predefined role that combines a single function security privilege
with related data security policies. You cannot create, copy, or edit aggregate privileges, but you
can use
se them as the b
building
ilding blocks of ccustom
stom job and abstract roles
roles.
Aggregate privileges:
• Are usually inherited directly by job and abstract roles, but can also be inherited by duty

roles
• Are not assigned directly to users
• Cannot inherit roles of any kind, including other aggregate privileges
Duty Role
Duty roles are similar to aggregate privileges, but they differ from aggregate privileges as
follows:
• They include multiple function security privileges
• They can inherit other duty roles and aggregate privileges
• You can create custom dutyy roles
Each predefined duty role represents a logical grouping of privileges that you may want to copy
and edit.
By the privileges granted to them, duty roles and aggregate privileges may:
• Determine the entries that a user sees
- On menus
- In the Tasks pane of a work area
• Grant access to:
- Work areas
- Dashboards
- Task flows and pages
- Reports
- Batch programs

Role-Based Access: Example
Differences between users are

accounted for by differences in
the roles that they inherit. Lindsay Allen
(User)
Data Role
Abstract Role
Compensation
Employee

Manager_US Workers
Job Role
Compensation
Manager
My Portrait Work
Salary Management
Area Navigation
Duty
Duty
The figure shows example duty roles for Lindsay’s abstract and job roles. In reality, abstract
and job roles inherit many duty roles.
dsay ca
• Lindsay can ope
open her
e oown Portrait
o t a t in tthe
e Person
e so Ga
Gallery
eya and
d view
e her
e oown
compensation information, thanks to the duty roles inherited by her Employee abstract
role.
• She can also adjust salary for US workers, thanks to her data role, which includes the
US Workers security profile and inherits the Compensation Manager job role. This job
role inherits the Salary Management Duty role.

Security Reference Implementation
Oracle Fusion Applications provides a comprehensive set of

predefined security data known as the
Security Reference Implementation.
Job Role
Compensation Application
It provides predefined: Administrator
• Abstract roles Duty Role

(Inherited)
• Job roles

Salary Setup Duty
• Aggregate privileges
• Duty y roles Privilege
• Functional security privileges Define Salary

Basis
• Data security policies

• HCM security profiles
You can review the Security Reference Implementation in the Oracle Human Capital
Management Cloud Security Reference and the Oracle Applications Cloud Security
Reference for Common Features.

Demonstration
Exploring HCM Security Reference Guide


Separation of Compensation Duties by Job Roles
The functions available to base pay, individual compensation, and

workforce compensation users depend on their Compensation job
roles and abstract roles. The main roles with Compensation
function and data access are:
• Compensation Administrator
• Compensation Manager
• Compensation Analyst

• Compensation Specialist
Base Pay, Individual Compensation, and Workforce Compensation

Each of the main compensation professional job roles has access to the Compensation work
area through duty roles,
roles but for different tasks.
tasks
• Compensation Administrator can perform only setup tasks.
• Compensation Manager can perform:
- No setup tasks
- All transactional tasks where worker data can be seen
• Compensation Analyst can:
- Export salaries
- Manage global models
- View administration reports
• Compensation Specialist can manage salaries and individual compensation.

Separation of Total Compensation Duties by Job Roles
The functions available to total compensation statement users

depend on their compensation job roles and abstract roles. The
main roles with total compensation statement access are:
• Compensation
C ti MManager

Total Compensation Statement

Tasks available:
• Compensation Administrator can set up statement definitions and generate
statements, but cannot view them.
• Compensation Manager can view statements, but cannot set them up or generate
them.

Summary
In this lesson you should have learned to:

• Identify the key processes and concepts of Compensation
• Describe how to find contextual user assistance and use the
Oracle Fusion Applications help system
• Explain how role-based access secures data in Oracle Fusion
Human Capital Management (HCM)
• Explain how Compensation separates duties by job role


3
Introduction to the
O l F
Oracle Fusion
i A Applications
li ti
User Interface

Lesson Objectives

• Explain the differences and similarities between the simplified
and desktop user interface elements
• Perform basic navigation in the simplified user interface
• Perform basic navigation in the desktop user interface


Oracle Fusion Applications User Interface (UI)
• Simplified UI
– Operates on many hand-held devices and facilitates easy
access to common tasks.
– Focuses on commonly used employee self-service tasks and
line manager tasks.
tasks
– Uses the same data and data model as in the desktop UI, with
a simpler presentation.

• Desktop UI
– Enables administrators, implementors, and managers to
perform most of their duties.
duties
There is a single home page URL, which is for the simplified UI. You get to the desktop UI
from tasks on the Navigator menu or by navigating to task details.

Simplified UI: Home Page
• Intuitive interface with icons for commonly-used objects

Springboard
Switch to other key tasks Global Area
by selecting an icon.
Contains the Navigator and other controls

Your company can post timely
and relevant news for users. Key tasks are
arranged in groups

Simplified UI: Springboard
Folders contain a group of
related work areas


Simplified UI: Infolet Pages
• Infolets are small containers that provide summary information

and access to key tasks.
• Users can have multiple infolet pages.

Use the row of dots to navigate
between the springboard and your
infolet pages

Simplified UI: Global Area
• Use the Navigator menu to open work areas in the desktop UI.
Navigator
Work Areas

Note the different design here for some of the same controls, such as the icon for the
Navigator menu. In the simplified UI, the icons are larger and more suitable for hand-held
devices.
In this example the user is Jacob, who has different selections than Brian, the user in the
previous example. These users have different roles and associated privileges, which affect
their selections.

Simplified UI: Global Area
Navigator
Shows all the application work areas and
tasks the user can access, including the Setup Settings and Actions Menu
and Maintenance work area Click your user name to sign out or
access other tools.

Home
Home Show/Hide Help
Returns to the home page
Company logo returns to the
home page
The five controls in the global area that are highlighted here are the ones you use most often
in this course.

Global Area: More Options
Watchlist Accessibility
Provides shortcuts to items
that you want to track or that
Global Search require your attention

Favorites and Recent Items Notifications
Lists bookmarks for easy access to Lists workflow-generated
business processes.
processes Use to revisit notifications such as
object details. Recent items are requests for approval
application-generated shortcuts to
recently visited business flows or
objects.

Simplified UI Page: Features
Filmstrip
Switch to other key tasks
by selecting another icon.
More Details
Select to see a full view of

your current task.
Groups
Work is divided into groups
where tasks are broad.
The More Details icon usually takes you to the desktop pages to perform detailed tasks. You
can return to the simplified UI any time by clicking Home in the global area.

Desktop UI
You can get to the desktop UI by clicking:

• Items on the Navigator menu
• More
M Details
D t il bbutton
tt

• Any item in the Related Links panel drawer
You can return to the simplified UI by clicking Home in the global area.

Desktop UI: Layout
Global Area
Controls the content of the regional, local, and contextual
Name of the work area areas. Consistent and persistent for all users.
Regional Area
Controls the content of the
local and contextual areas

Contextual Area
In specific cases,
controls the content of
Local Area the local area (causing a
local-area reload)
The main work area that typically contains the
transaction form with menus, tabs, and other
controls used to complete functional tasks.
Controls the content of the contextual area.
Some features don’t use the contextual area.

Dashboards
Dashboards provide the following:

• Information summaries: View the big picture and
prioritization
• Information monitoring: Take quick action and explore
f th
further
The main dashboard is the Welcome dashboard, which is a
collection of dashboards. In addition, two other types are

available:
• Transaction dashboards contain content that is core to one or
more business processes.
• Business intelligence (BI) dashboards contain content that is
complementary to one or more business processes.

Welcome Dashboard
Tabs that appear are
based on the user’s roles

You can go to your Welcome dashboard by clicking My Dashboard on your home page. The
dashboard shown here was customized for demonstration purposes. The provisioned desktop
UI welcome page on your company’s environment will look different.

Summary
In this lesson, you should have learned to:

• Explain the differences and similarities between the simplified
and desktop user interface elements
• Perform basic navigation in the simplified user interface
• Perform basic navigation in the desktop user interface


4
Define Workforce Structures

Lesson Objectives
After completing this lesson, you should be able to describe the

employment model.
Define Workforce Structures
Define Eligibility Profiles
Define Elements, Balances and Formulas
Define and Manage Base Pay

Define and Manage Individual Compensation
Define and Manage Workforce Compensation
Define Total Compensation Statements
Manage Market Data

HCM Employment Models: Overview
Oracle Fusion HCM applications offer the choice of two

employment models:
• Two-tier
• Three-tier

The tier at which salary is held affects where you see a worker’s salary record when looking at
their employment record.

Employment Models
Three-Tier Employment Model

• This model comprises three types of entities:
– Work relationships
– Employment terms
– Assignments
Two-Tier Employment Model
• This model comprises two types of entities:

– Work relationships
– Assignments
ss g e s
Available Three-Tier Options

• Single Employment Terms with Single Assignment
• Single Employment Terms with Multiple Assignments
• Multiple Employment Terms with Single Assignment
• Multiple Employment Terms with Multiple Assignments
For all three-tier employment models, one set of employment terms and a single associated
assignment are created automatically when you create the work relationship.
Available Two-Tier Options
• Single Assignment
• Single Assignment with Contract
• Multiple Assignments
For all two-tier employment models, one assignment is created automatically when you create
the work relationship.

Three-Tier, Single Employment Term Employment
Models
Single and Multiple Assignments

Both three-tier options have one set of employment terms for each work relationship.
Multiple Assignments: Additional assignments can belong to the employment terms or exist
outside of them.

Three-Tier, Multiple Employment Terms Employment
Models
Single and Multiple Assignments

For these options, each work relationship can contain one or more sets of employment
terms. Additional assignments can belong to employment terms or exist outside them.
• S Single
g e ass
assignment:
g e t Each
ac set oof e
employment
p oy e t te
termss ca
can co
contain
ta a ssingle
g e ass
assignment.
g e t
• Multiple assignments: Each set of employment terms can contain one or more
assignments.

Two-Tier, Single Assignment Employment Model
Each work relationship of any type has one assignment only.


Two-Tier, Single Assignment with Contract Employment
Model

You can include contract information in the single assignment, which enables those
legislations that require contract information in employment records to meet their obligations
without having to use a three-tier employment model.
Note: Including contract information in the assignment is optional.

Two-Tier, Multiple Assignments Employment Model
• Each work relationship of any type can include one or more

assignments.
• Additional assignments are optional and are created manually.


Salary Records in Employment Models
The tier at which salary is held affects where you see a worker’s
salary record when looking at their employment record.

Salary and variable compensation should be held at the same employment tier for each
worker. For each legal employer, you can configure the default level at which to hold salary.
Note: Salary for multiple assignments held at the assignment level is not summed up to
display a salary at the employment terms level.

Quiz
Q
The three-tier employment model consists of which types of
entities?
a. Assignments
b. Contracts
c. Employment terms
d. Work relationships
e. All of these entities

f. None of these entities
Answer: a, c, d

Quiz
Q
The two-tier employment model consists of which types of
entities?
a. Multiple assignments
b. Multiple assignments with contract
c. Single assignment
d. Single assignment with contract

Answer: a, c, d

Quiz
Q
Salary is summed on the employment terms level when salary is
held on the assignment level and there are multiple assignments.
a. True
b. False

Answer: b

Summary
In this lesson, you should have learned how to describe the

employment model.


5

Lesson Objectives
After completing this lesson, you should be able to create:

• Derived factors Define Workforce Structures
• Eligibility profiles

Manage Market Data

Defining Eligibility: Overview

• Eligibility profile: Define criteria used to determine whether a person qualifies for a
compensation object.
• g b ty criteria:
Eligibility c te a
- Add different types to an eligibility profile. For many common criteria, such as
gender or employment status, you can
select from a list of standard criteria values.
- Define how to calculate eligibility criteria that change over time, such as length of
service and age.
• Restrict eligibility: Associate an eligibility profile with different kinds of compensation
objects to restrict eligibility:
- Individual and workforce compensation plans
- Total compensation statements

Demonstration
Managing Eligibility Profiles


Managing Derived Factors
Derived factors typically change with time.

For each factor that you create, specify one or more rules about how eligibility is determined.
Depending on the derived factor, you can also specify settings, such as:
• Unit of measure for time or monetary amounts
• Rounding rules
• Minimums and maximums
Age
• Age to Use: Generally you select each person’s birth date to calculate the age criterion
as of the determination date.
• Determination Rule: Specify the day on which to evaluate the person’s calculated age
for eligibility.
Example: If the determination rule is set to the first of the year, then the person’s age as
of the first of the year is used to determine eligibility.

Length of Service
Define a range of values and rules for calculating an worker's length of service.
Example: You define a set of length-of-service bands to determine eligibility for bonuses.
Each band is a separate derived factor
factor.
Compensation
Define a range of values and rules for calculating an worker’s compensation amount.
Example: You create a set of compensation bands to determine eligibility for stock options.
Each band is a separate derived factor.
Full-Time Equivalent
Specify the minimum and maximum full-time equivalent percentage, and whether to use the
primary assignment or the sum of all assignments when evaluating eligibility.
Example: The percentage range is 90 to 100 percent for the sum of all assignments. A person

who works 50 percent of the time on two different assignments is eligible.

Demonstration
Managing Derived Factors


Planning and Prerequisites for Eligibility Profiles
Before you create an eligibility profile you must first create any
objects that you will associate with it.

When you create an eligibility profile, use names that identify the criteria being defined, rather
than the object with which the profile is associated to make reuse easier.
Example: Use Exclude UK rather than Stock Eligibility Profile

Setting the Eligibility Profile Definition
When you create an eligibility profile:

• Select Compensation as the usage.
– Usage determines the type of objects with which the profile can
be associated.
• S
Select
l t Specific
S ifi Assignment
A i t as the
th assignment
i t to
t use for
f
workforce compensation and individual compensation plans.

Assignment to Use
• For workforce compensation plans, the specific assignment evaluated for eligibility is the
assignment selected in the Assignment to Use field in the Plan Details task of plan
setup.
• For individual compensation plans, the specific assignment is passed to eligibility
evaluation processing from the context of the assignment selected during person
search.
• For total compensation statements, only the person ID is passed to eligibility processing.
Select one of the following values:
- Any assignment – enterprise
- Employee assignment only – enterprise
- Primary employee assignment only – enterprise

Defining Eligibility Criteria
Criteria defined in an eligibility profile are divided into types.

Criteria Types
• Personal: Includes gender, person type, postal code ranges, and other person-specific
criteria
• Employment: Includes assignment status, hourly or salaried, job, grade, and other
employment-specific criteria
• Derived factors: Includes age, compensation, length of service, hours worked, full-time
equivalent, and a combination of age and length of service
• Other: Includes miscellaneous and formulas
Some criteria
criteria, such as gender,
gender provide a fixed set of choices.
choices The choices for other criteria
criteria,
such as person type, are based on values defined in tables. You can define multiple criteria
for a given criteria type.

Excluding, Sequencing, Adding, and Viewing Criteria
• Do not combine include and exclude criterion in a single profile—

create one profile for each type of criterion.
• You must assign a sequence number to each criterion.
– The sequence determines the order in which the criterion is evaluated
relative to other criteria of the same type.
• When you use multiple criteria of the same criteria type, you are
building an OR statement.
• Use the View Hierarchy button to see a list of all criteria that you

have saved for this profile.
– The list is arranged by criteria type.
Excluding from Eligibility

For each eligibility criterion that you add to a profile, you can indicate whether persons who
meet the criterion are considered for for, or are excluded from
from, eligibility
eligibility.
Example: A length of service factor can include workers with at least 10 years of service, or
exclude workers with less than five years of service. If you exclude certain lengths of service,
then all lengths of service not explicitly excluded are automatically included. Similarly, if you
include certain lengths of service, then lengths of service not explicitly included are
automatically excluded.
Adding
g Multiple
p Criteria
• If you define multiple values for the same criteria type, such as grades admin1
through admin3 and admin5 through admin6, a person must satisfy at least one of the
criteria to be considered eligible, so a person with the admin4 grade would not be
eligible.
• If you include multiple criteria of different types, a person must meet at least one
criterion defined for each criteria type. When you use criteria from different criteria types,
you are building
b ildi an AND statement.
t t t

Practices
• 5-1: Creating the Min 1 Year of Service Derived Factor

• 5-2: Creating the FTE Eligibility Profile
• 5-3: Creating the Min 1 Year Eligibility Profile

Using your activity guide, do the specified practices.

Quiz
Q
Which do you create first?
a. Derived factors
b. Eligibility profiles

Answer: a

Quiz
Q
Given that eligibility profiles are reusable, what kinds of names
should you use?
a. Names that identify the criteria being defined
b. Names that identify the object with which the profile is
associated
i t d

Answer: a
Example: Use Exclude UK rather than Exclude UK from Stock.

Quiz
Q
For ease of implementation, you should combine include and
exclude criteria in the same eligibility profile.
a. True
b. False

Answer: b
Reminder: Create separate profiles—one for include criteria and one for exclude.

Summary
In this lesson, you should have learned how to create derived

factors and eligibility profiles.


6
Define
D fi ElElements,
t B Balances,
l and
d
Formulas

Lesson Objectives

• Describe fast formula Define Workforce Structures
types for compensation
• Create payroll earnings
and deduction elements Define Elements, Balances and Formulas

Manage Market Data

Managing Fast Formulas
• Fast formulas enable you to extend compensation

functionality to obtain non-standard results.
• Formulas are pieces of code that can:
– Receive information from calling programs
– Access database information
– Return values to the calling program
The calling program can use this information to modify the

processing functionality.

Formula Types and Components
Use delivered formula types to create customized formulas when

existing rules or parameters are not enough.
• Workforce Compensation Formula Types
– Compensation Default Access Level
– Compensation Currency Selection
– Compensation Default and Override
– Compensation Hierarchy Determination

– Compensation Person Selection
• Total Compensation Statement Formula Type
– Total Compensation Item
Workforce Compensation Formula Types

• Compensation Default Access Level: Determines the access level for a selected
workforce compensation plan hierarchy
• Compensation Currency Selection: Determines the currency associated with a
workforce compensation component
• Compensation Default and Override: Determines the default values populated in a
column for a workforce compensation plan
• Compensation Hierarchy Determination: Determines the hierarchy for an associated
p
workforce compensation p
plan when p
predefined hierarchies are not adequate
q
• Compensation Person Selection: Determines whether a person is selected for an
associated workforce compensation plan when you run the Start Workforce
Compensation Cycle process. Use when existing selection parameters are not
adequate.
Total Compensation Statement Formula Type
• Total Compensation Item: Retrieves compensation information that is not stored in the
other predefined compensation item source types used to create compensation items for
display in statement categories

Formulas are created using various components. The person in your organization who
develops formulas must understand formula language, the rules that the application imposes
on the formula, and the calculation requirements.

Database Items for Formula Types
• Database items related to Person, Assignment, Salary, and

Element Entries are available for:
– Compensation Default and Override
– Compensation Hierarchy Determination
– C
Compensation
ti C Currency SSelection
l ti
– Compensation Person Selection
• No database items are available for Total Compensation Item.

Additional Information
Each formula type is documented with the formula contexts, database items, inputs, return
variables and a sample formula
variables, formula. Use the sample formula as a model to create your own
formula.
For more detailed information about compensation formula types, in Oracle Fusion
Applications Help, search for: formulas for workforce compensation plans.
For more information about fast formulas, see the Oracle Fusion Using Fast Formula Guide.

Demonstration
Viewing Formula Types Documentation


Managing Payroll Elements: Overview
• Elements are building blocks that help determine the payment

or distribution of:
– Base pay
– Other compensation
– Deductions
D d ti
• For compensation, you can define earnings and deduction
elements, such as:

– Salary
– Bonuses
– Allowances
– Voluntary deductions
Elements are required for individual and workforce compensation plans, whether you use
Oracle Fusion Global Payroll or some other payroll application.
Payroll Definitions supply the pay period frequency and end dates. You must define a payroll
definition to use elements for compensation.

Element Templates
The element template incorporates all of the components that are

required for payroll processing.


Element Component Definitions

Classification
Provides element controls, such as taxation and processing sequence
I
Input
t Values
V l
Defines values that hold information to calculate an element’s payroll run result
Eligibility
Determines rules that indicate which workers are eligible for an element. (Sometimes called
element link.)
Processing Rules
Defines how rules apply to the results that the element formula returns
Formulas
Specifies the calculation used to enter and process elements
Balances
Accumulates result totals over a period of time

Delivered Elements and Element Templates
• Predefined elements:
– Cannot be modified
– Example: Taxation elements
• Create elements using element templates:
– The provided template depends on the primary and secondary
classification selections.
– Templates include questions to define components for the

element, such as:
— Balances
— Balance feeds
— Processing formulas
If the delivered element does not meet your requirements, you can create a new one.

Element Component: Example
This figure shows an example of an earnings element for hourly

wages with the value for each component in italics.


Demonstration
Viewing Element Components


Element Input Values
• These are used with calculations to process an element.

• An element can have unlimited input values.
– Examples: Hours Worked and Hourly Rate
• Compensation uses either Amount or Rate.
• Default value:
– Automatically populates for the applicable workers after
awarding the compensation

– A regular default is used only to provide an initial value and has
no further impact on an entry, even if the default value
changes.
h
• Minimum and maximum values:
– Use them together or independently.
The setup of the element and its input values directly affects what entry values you can enter
for the element. Depending on the element setup, you can:
o de a
• Provide an e
entry
t y value
a ue manually
a ua y
• Use a default value
• Use a formula
When you define a base pay payroll element, you specify an input value that holds base pay
on a worker’s element entry.
• For base pay salary, the input value is Amount.
• For hourly wages,
wages the input value is Rate
Rate.
When you define a payroll element for individual and workforce compensation plans, you
elect to display the Amount input value for the element, which holds the awarded
compensation for the plan.

Element Entries
• The record controlling a worker’s receipt of an element

– Includes the period of time for which the worker receives the
element and its value
• Defined input values are included in the element entry record
– Th
The compensation
ti amountt or ratet is
i written
itt tot the
th input
i t value
l
on the element entry for the compensation element.
• Durations are either Recurring or Nonrecurring.

Compensation element entries are created automatically from the salary records and
compensation awards, both of which are covered later in this course.
Duration for Entries
If an element is:
• Recurring, such as salary, the element entry will occur each pay period
• Nonrecurring, such as overtime pay, you must enter the entry value every pay period,
for the element to be paid to a worker
Note: When not using Oracle Fusion Global Payroll or setting up and assigning payrolls, you
can select Recurring even for nonrecurring payments.
payments In that case
case, all end of year amounts
appear in the recurring payments area in compensation history.
Allowing Multiple Entries
If an hourly worker’s time must be reported separately to distinguish between projects or cost
centers for which the worker worked, then define the regular and overtime hour entries to
allow multiple entries.
Elements such as bonuses might be limited to one entry per pay period
period.

Element Eligibility Criteria
• All payrolls or specific • Grade

payrolls • Groups to which the person
• Payroll statutory unit belongs
• Legislative data group • Position
• Employment category – A class of job performed
in a particular organization
• Payroll relationship type
– Example: Associate
• Department in which the

Professor of Chemistry
person works
• Location of person’s
person s office
• Job
– Example: Associate
Professor or Secretary
You can assign eligibility criteria to the element that workers must have to qualify for receiving
entries of the element.
Set up all of the groups that are appropriate for your enterprise.
Example: You decide to group persons by company within a multi-company enterprise, and
by union membership.
You can define more than one eligibility criteria for each element as long as there is no
overlap between or among them.
Example: You want to give a production bonus to only those persons who work full time in
Production and are on the weekly payroll. To create the eligibility for the Production Bonus
element, set up eligibility with the combination of the:
• Production department
• Full-time assignment
• Weekly payroll
You can specify input value rules and costing rules for specific eligibility rules.

Note: Some criteria may not be available depending on the level at which the element is
attached.
Example: Involuntary deductions are attached at the payroll relationship level, so criteria for
all payrolls or specific payrolls do not apply.
Element Eligibility Versus Compensation Plan Eligibility
Although you can specify eligibility on both the element and the compensation plan, the best
practice is to manage all of your eligibility in one place. For elements that you associate with
individual and workforce compensation plans, eligibility is typically determined by eligibility
profiles associated with the plans, as they have the richest functionality.
Important: When creating elements
elements, you must specify eligibility
eligibility. If you are managing eligibility
with eligibility profiles, name the element eligibility record and save it without selecting any
eligibility criteria—this leaves element eligibility open.

Balance Feeds
• Balances accumulate results totals over time

and are fed by one of the following:
– Whole classifications of elements
– Individual elements
• You
Y cannott select
l t balances
b l th
thatt are ffed
dbby classifications.
l ifi ti

Input Values That Feed Balances

Select the input value that you want to use to feed the balance.
Note:
N t The
Th lilistt di
displays
l allll th
the iinputt values
l d
defined
fi d ffor th
the element.
l t Wh
When you select
l t an iinputt
value, its unit of measure appears.
• To feed a balance with the element’s direct run result, select Pay Value.
• You can use an element to feed as many balances as you require.
Additional Information
For more detailed information about compensation balance feeds, on the Help menu, select
Applications Help. On the Oracle Fusion Applications Help browser tab, search for balance
feeds.

Element Classification Types
• Primary
– Determine the type of element that you are creating, such as:
— Balances that reflect tax legislation, for taxable classifications
— Basic costing options, which classify elements as costable or
distributable
• Secondary
– Subsets of the primary classifications, which you use to define

withholding rules
• Subclassifications
– Elements can have multiple subclassifications
– Use predefined subclassifications or create your own.
– After you associate a subclassification with a classification, you
cannot associate it with another classification.
Classifications determine the processing order and the balance feeds for elements. They are
predefined based on requirements for each legislative data group. Elements can belong to
three types of classifications. While elements can have only one primary classification and
one secondary classification, they can have multiple subclassifications.
Primary Classifications
They are predefined and not editable. Oracle Fusion Compensation includes these primary
classifications for the United States legislation:
• Standard Earnings, such as salary or wage
• Supp
Supplemental
e e ta Earnings,
a gs, suc
such as bo
bonusus
• Voluntary Deductions, such as Red Cross
Some countries use different names and do not necessarily use the same set of
classifications.
Example: The US does not use Social Insurance, and many countries will see Prestatutory
Deductions instead of Pretax Deductions.

Secondary Classifications
There are several predefined secondary classifications, which cannot be edited.
Example: For compensation, secondary classifications of Standard Earnings for the United
States legislation include Regular and Regular not worked.
Note: Additional elements may be automatically created based on the rules associated with
the primary and secondary classifications. When you search for and select your element, you
see the related withholding or other elements that start with the same name as the element
that you create.
Subclassifications
Example: Within a US legislation, subclassifications for Standard Earnings are Disposable
I
Income Alimony
Ali and
d Standard
St d d Pension
P i Plan
Pl Eligible
Eli ibl Wages.
W

Deductions and Deduction Elements
• Deduction
– An object that consists of a set of rules and usually one or more
related elements
• Deduction element
– A ttype off element
l t that
th t is
i associated
i t d with
ith a deduction
d d ti
– The deduction specifies the rules and rates to use when
calculating the deduction amount.

When you create a deduction element, the element template automatically:

• Creates all of the input values, indirect rules, and deduction components for calculations
• Associates the element with the appropriate deduction calculation component so that it
can access those rules and rates for calculating the deduction amount

Voluntary Deductions
• Retirement plans • Union

• Loans • Employer reimbursements
• Charitable donations • Employee stock purchase
• Benefits plans (ESPP)

Workers elect to have an amount that they stipulate deducted from their checks.

Demonstration
Creating an Element


Compensation Elements and the Employment Model
Create element entries at various employment levels.

• Best Practice: Create salary and individual compensation
elements at the same level.


Elements and the Employment Level
• Employment Terms Elements

– Typically salary, if the elements vary based on the employment
terms
– Processed multiple times in the run, once for each employment
term
• Assignment Elements
– Typically salary, overtime, and bonuses

– Vary from one assignment to another, based on time and
monetary units entered
– Processed multiple times in a run,
run once for each assignment
The storage level configured for the legal employer determines the employment level of the
salary element.
Create elements for individual compensation at the same employment level as the salary
element.
Note: If the selected salary basis frequency is Payroll period, the element must be defined at
the terms level.

Practices
• 6-1: Creating the Bonus Earnings Element

• 6-2: Creating the International Red Cross Deduction Element
• 6-3: Creating the Annual Salary Earnings Element
• 6-4: Creating the Hourly Earnings Element


Quiz
Q
You can use formulas instead of the existing application code to
obtain non-standard results where compensation provides the
formula types.
a. True
b False
b. F l

Answer: a

Quiz
Q
Element classifications determine the questions asked on the
element template and the formulas generated for an element.
a. True
b. False

Answer: a

Quiz
Q
Which of these components do you always create manually when
defining an earning or deduction?
a. Balances and balance feeds
b. Formula
c. Element eligibility
d. Input values

Answer: c

Summary

• Describe fast formula types for compensation
• Create payroll earnings and deduction elements


7

Lesson Objectives
After completing this lesson, you should be able to create:

• Grade rates Define Workforce Structures
• Salary bases

Manage Market Data

Grade Rate: Overview
Grade rates specify compensation amounts associated with each

grade in the rate.

Grade rates typically serve only as a guideline to validate that the salary you propose during
the compensation process for a worker on a certain grade is appropriate for the worker’s
grade.
Compensation can be a range of minimum, maximum, and mid-point amounts or a fixed
value.

Demonstration
Managing Grade Rates


Validating Salary Using Grade Rates
If both of the following are true:

• Grade rates are linked to the salary basis
• The workers’ grades are associated with the grade rate that is
associated with the salary basis
Then:
• Salaries are validated using the grade rates
• Compa-ratios and salary range positions are calculated using

the defined grade minimum and maximum amounts
Example: Using Grade Rate to Validate Salary

The grade rate range for grade A1 is 30,000.00 USD to 50,000.00 USD. An assignment
record for a worker indicates that the worker is:
• In grade A1
• Has a salary of 40,000.00 USD
The worker’s salary is within the grade rate range, so no warnings are issued. If the worker’s
manager or a human resource (HR) specialist changes the worker’s salary to 55,000.00 USD,
a warning is issued that the new salary is outside of the salary range.

Practice
7-1: Creating a Grade Rate

Using your activity guide, do the specified practice.

Salary Terminology
• Salary
Salary is a generic term that corresponds to a worker’s base
pay (including hourly wage) and is further defined by a
worker’s salary basis.
• Salary Basis
Each worker is assigned a salary basis, which
defines characteristics of the worker’s base pay. You must

have one for every salary record, regardless of where the
salary is stored, assignment or employment terms tier.
Note: A single database table stores historical, current, and future salary records.

Salary Basis: Overview

The figure shows that the salary basis assigned to each worker holds the:
• Legislative data group (LDG)
• Payroll element and input value,
value which determine element currency and help feed the
salary to payroll
• Frequency, which determines the compensation frequency of the amount sent to payroll
and stored as salary
• Salary components (optional) to itemize allocations
• Annualization factor used to calculate annualized salary
• Grade rate (optional),
(optional) which provides the salary range for metrics and salary validation

Salary Basis
Restrictions:
• You must create a separate salary basis, with a unique
descriptive name for each unique combination of the salary
basis attributes.
• After associating a salary basis with any worker, you
cannot delete
d l iit or modify
dif iit.

Tip: To match the salary basis frequency to the payroll frequency, select Payroll period
frequency on the salary basis. Be sure to define the associated payroll element at the terms
level and also assign workers to a payroll.

Demonstration
Managing Salary Basis


Legislative Data Groups (LDGs)
• Legislative data groups are

country-specific or legal payroll
data partitions.
• Typically, there is one LDG per
country but you can have more.
country, more
• Restriction: You cannot share
salary bases across LDGs.

The payroll element choice list is dynamically generated based on the LDG that you select.

Associating a Payroll Element with a Salary Basis
• You can associate only recurring elements:

– Classified as earning or information
– Defined at either of these levels and
in the same legislative data group
— Assignment
— Employment terms
– Defined with element eligibility

– With Automatic Entry not selected
for both the element and its eligibility
• You must select one of these input
values for the element:
– Amount
– Rate
For each salary basis, select a single existing payroll element to hold base pay earnings.
Note: Payroll handles other earnings (such as overtime) with different payroll elements.
You can use the same payroll element in more than one salary basis
basis, if it meets these
requirements:
• Is a recurring earnings element
• Is configured to allow multiple entries in the same period
• Is configured for the same legislative data group
You might use the same payroll element when two salary bases with the same frequency use
different grade rates.
rates
Example:
• Headquarters-based grades have base pay of X.
• Grades for all other locations have base pay of X - 2 percent.

Payroll Element and Input Value

The salary basis holds the payroll element for base pay. When you define a base pay payroll
element, you specify an input value that holds base pay on a worker’s element entry.
o base pay sa
• For salary,
a y, tthe
e input
put value
a ue is
s Amount.
ou t
• For hourly wages, the input value is Rate.
When you enter or update a base pay amount for a worker, the application creates or updates
the base pay element entry for that person. The monetary amount or rate passed to the
element entry is the salary value in the worker’s salary information held on the assignment or
employment terms.
p
Examples
• If the salary basis frequency is Annually, the amount passed to the element entry is an
annual amount.
• If the salary basis frequency is Hourly, the amount of the element entry is the hourly
rate.

The payroll run detects and processes the element entry for the worker in the current payroll
period. The element’s formula:
• Converts the input value amount on the element entry to the appropriate payroll period
amount
• Multiplies the input value hourly rate by the number of hours reported for the payroll
period.
The resulting base pay earnings appear on the payslip for the element associated with the
salary basis.

Base Pay Frequencies
Frequency is the period of time in which a worker’s base pay is

stored and quoted:
• Hourly
• Monthly
• Annually
• Payroll period

A worker who has multiple assignments or employment terms on different payroll frequencies
requires a different salary basis associated with each assignment or employment term.
To match the salary basis frequency to the payroll frequency, select the Payroll period
frequency on the salary basis.

Annualization Factors
• Annualization factor:
– The multiplication factor used to convert base pay at the
selected frequency to an annualized amount.
• Annualized amount:
– Sh
Shows how
h muchh a worker
k would
ld b
be paid
id over a year, att th
the
current rate
– Is stored in the salary record

– Appears on compensation transaction pages
Default Annualization Factors for the Standard Frequencies

You can override these default values.
• Annually: 1
• Monthly: 12
• Hourly: No default value.
Enter the number of hours in work year to multiply by the hourly rate to calculate
annualized salary.
Example: If the basis is hourly for an organization that works 8 hours per day and 5 days
in a week,
week then the annualized salary is calculated as 8 hours x 5 days x 52 weeks =
2080 hours.
• Payroll Period: Not available.
The period type on the payroll linked to the worker's employment terms determines
annualization. Be sure that the associated payroll element is defined at the terms level.

Group Discussion: Annualizations
Do you use different annualizations? For example, some

countries annualize over 13 months instead of 12.


Salary Components: Overview
You can set up the salary basis to include change reasons that
enable itemization of salary and salary adjustments by entering
amounts or percentages for one or more of these components:
• Merit
• Cost
C t off Living
Li i
• Adjustment
• Market

• Structured
• Equity
• Promotion
• Location
• Progression
You can extend this list if you want to:

• Add more values to it
• Remove any of the standard values
Tip: Component itemization is for informational purposes only. When component values
change, the payroll element holds the new salary value calculated from the component
adjustment. Individual component values are not sent to payroll for processing.
Choose How Components Display When Adjusting Salary
To configure the use of salary components during salary entry or adjustment, choose from the
following options:
• Do not use components.
• Select specific components to display to managers and professionals during allocation.
• Allow managers and professionals to select components during allocation.

Example of Component Usage
Salary bases for monthly paid workers in the US may include the following components:
• Merit
• Promotion
• Adjustment components
So, a 4,000 USD salary adjustment for a worker may be itemized in the following way:
• Merit: 6 percent
• Promotion: 4 percent
• Adjustment components: 2 percent

Salary Components
• The lookup type to use to customize salary components is

CMP_SALARY_COMPONENTS.
• To view or update salary component lookups:
– In the global area Administration menu, select Setup and
Maintenance.
Maintenance
– In the Search: Tasks pane, search for and go to the Manage
Common Lookups task.

– On the Manage Common Lookups page, search for the
CMP_SALARY_COMPONENTS lookup type.

Grade Rates
Optionally, associate one existing grade rate with a salary basis

to validate salaries.

• Only grade rates valid for the selected legislative data group are available.
• Grade rate currency must match salary basis currency (inherited from payroll element
put)
input).
• Grade rate is required on the salary basis for calculated metrics to appear on the
transactional pages.
Tip: The frequency of the grade rate does not have to match the frequency of the salary
basis.
Example: You can attach a grade rate defined with a monthly frequency to a salary basis with
q y
an annual frequency.
Managers and compensation professionals get warning message if they enter a total salary
amount that is outside of the relevant range specified in the grade rate.

Troubleshooting Tips
Salary metrics (such as minimum and maximum salary range

values) do not show on salary transactional pages if:
• No grade rate is assigned to the salary basis
• The person associated with the salary basis does not have a
grade
d
• The person has a grade that is not included in the grade rate
associated with the salary basis

To help you determine how many different salary bases you require, if you are using grade
rates, identify in how many different currencies you are defining your grade rates.

Questions to Help Determine Required Salary Bases
• How many different frequencies

for quoting base pay are in use?
• Do any of the frequencies have
multiple annualization factors?
• How
H many llegislative
i l ti ddata
t
groups (LDGs) are there?
• How many different currencies are

used in payroll elements for each LDG?
• Do you want to use the same payroll element for different
salary bases?
• Do you want to itemize salary into components?
• How many different grade rates do you require?
You must define a separate salary basis for each unique combination of the values in the
salary basis definition page. This list helps you identify the variations in setup that require
unique salary basis definition.

Group Practice
Determining Salary Bases Group Analysis

Using the activity guide, do the specified group practice.

Practices
• 7-2: Creating the Annual Salary Basis

• 7-3: Creating the Hourly Rate Salary Basis
• 7-4: Creating the Hourly Rate Salary Basis with Components
• 7-5: Assigning Salary Basis


Group Discussion
• How many salary bases might you require in your enterprise?

• What are the distinguishing factors?


Work Areas Used to Manage Base Pay
• Line manager
– Manager Resources Dashboard
– Person Gallery
• HR specialist
– Person Gallery
– Person Management
• Compensation manager

– Compensation

Entering and Adjusting Salaries
Tasks by Role and Business Process
Role Manage Base Pay Administer and Manage

Workforce Compensation
Compensation
C ti M
Manage IIndividual
di id l BBase O
Override
id MManager All
Allocations,
ti or
Manager Pay Records Act as Proxy
Line Manager Manage Individual's Base Allocate Salary, View History

Salary, View Salary History
HR Specialist Manage Individual's Base None

Salary, View Salary History
Line managers can award compensation in a variety of business flows and work areas.
Compensation managers and HR specialists can perform the same tasks for administrative,
oversight, and troubleshooting purposes.
Compensation managers and HR specialists can:
• View a worker’s salary basis and change it, subject to security and other constraints
• Adjust base pay by adjusting amount, percentage, compa-ratio, or other salary factors
• Enter multiple salary adjustments in a single transaction
- Salary adjustments made in the same transaction cannot have the same start
date, but this enables you to enter future-dated
future dated salary adjustments for a person.
• View salary history, as well as graphical analysis of current and new salary, including
salary growth rate
• View future salary changes and update the approved salary record with the latest
effective date
Note: This task is limited to compensation manager and HR specialist roles.

Adjusting Salaries and Salary Basis
A worker’s salary basis generally remains constant. However, if a worker is promoted from an
individual contributor to a manager, the salary basis might require change from hourly to
annual. Or a union contract amendment might mandate itemizing a worker's pay rate,
requiring change from an hourly salary basis that does not use components to an hourly
salary basis that uses components.

Salary Change Approvals
These approval workflow tasks are delivered:

• ChangeSalaryApprovalTask
• ChangeSalaryApprovalFYITask

The actionable Change Salary Approval task has rules with default details such that the task
applies to all salary changes, it uses two levels of the Supervisory list builder, and requires a
response from the current approver.
You can configure rules based on thresholds, such as:
• Salary change percentage
• Salary change amount
• Current and new compa-ratio, grade, or job
For example, you can create a rule that routes salary approvals when the change from the
current salary to the new one exceeds 10 percent using this IF statement:
• Task.payload.getSalaryApprovalValuesResponse.result/value.newCha
ngePercent more than 10.00.
Note: These approval flows do not apply to workforce compensation.

The informational task is only for notification and has no rules.
You can change:
• Event-driven configuration, such as assignment and routing policies, expiration and
escalation policies
policies, and notification settings for all tasks
• Data-driven configuration rules that determine routing for actionable tasks
• For more information about approvals in compensation see the Compensation Approval
Tasks: Explained help topic.

Demonstration
Managing Person Salary


Practice
7-6: Adjusting Salaries


Editing Salaries in the Integrated Workbook
• Generate the integrated Microsoft Excel workbook, populated

with the salary information that matches your download
parameters.
• Use the integrated workbook to edit the salary information.
• Upload
U l d your changes
h iinto
t th
the application
li ti d database.
t b

Basic Process for Downloading Salaries

Edit salary by providing a salary change percentage or amount.
• Generate and populate the workbook
workbook.
• Edit workbook data.
• Upload edits.
• Resolve errors.
Repeat these steps as many times as required to accommodate revisions.

Instructor Practice
Editing Salaries in the Integrated Workbook

Using the activity guide, your instructor does the specified practice.

Line Manager: Simplified User Interface
Users with the Line Manager role can also see the My Team,
Team Compensation, and Team Talent icons.

My Team
Managers can view the portraits of their direct and indirect reports, initiate actions for their
workers access reports
workers, reports, analytics
analytics, and other related links that take them to the Oracle Fusion
pages.
Team Compensation
Managers can view the salary and compensation details of their workers, view analytics, and
navigate to the Oracle Fusion pages to perform further actions.
Team Talent
Managers can view the performance and goals information of their workers, view related
analytics, and navigate to the Oracle Fusion pages linked from here.

Demonstration
Team Compensation and My Details


Manager Resources Dashboard: Compensation
((Line Manager)
g )

Note: Clicking a name opens the Person Gallery for that person.

Person Gallery: Compensation
((Line Manager
g and HR Specialist)
p )
Line managers can search for and act on workers that report to
them.

Search for and select a worker, and then use the Actions section to manage their salary.
A manager can also view the worker’s My Portrait tab, which includes the worker’s
compensation card with a snapshot of the worker’s
worker s current salary and also
allows compensation actions.
From the Person Gallery or My Portrait, if you take an employment action such as transferring
or promoting a worker, you can change the worker's salary as part of that transaction in the
Actions section.

Person Management: Manage Salary (HR Specialist)
Give the worker a salary adjustment and view salary analytics as

well as compensation history.

After selecting the Manage Salary action or task, the Manage Salary tab appears displaying
the selected worker’s salary record.

Compensation Work Area (Compensation Manager)
Access all tasks to manage compensation for workers.

Compensation managers can use the Manage Salary task to update any records. Any
changes made from this work area are immediately committed and do not require approval.
Note: You can also enter and adjust salaries using workforce compensation plans as well as
during HR transactions for hiring, transferring, and promoting workers.
You can see a history of the changes made to the selected worker’s salary as well as all the
details associated with each salary record.

Quiz
Q
Linking grade rates to a salary basis provides salary change
validation.
a. True
b. False

Answer: a

Quiz
Q
The annualized amount shows how much a worker would be paid
over a year, at current rate.
a. True
b. False

Answer: a

Quiz
Q
You can share salary bases across legislative data groups.
a. True
b. False

Answer: b

Quiz
Q
You can use the same payroll element in more than one salary
basis, if it is a recurring earnings element and configured to allow
multiple entries in the same period.
a. True
b False
b. F l

Answer: a

Quiz
Q
Select all of the statements that are true for associating an
existing grade rate with a salary basis.
a. The grade rate and salary basis currency must match.
b. The grade rate is not required for calculated metrics to appear
on transactional
t ti l pages.
c. The grade rate and salary basis frequencies do not have to
match.

d. All of these statements are true.
e. None of these statements are true.
Answer: a, c
• The grade rate and salary basis currency must match.
- Reminder: These values are inherited from the payroll input element
element.
• The grade rate and salary basis frequencies do not have to match.
- Reminder: You can attach a grade rate defined with a monthly frequency to a
salary basis with an annual frequency.

Quiz
Q
When component values change, the new component values are
sent to payroll for processing.
a. True
b. False

Answer: b
Reminder: The payroll element holds the new salary value calculated from the component
adjustment
adjustment.

Quiz
Q
When itemizing salary, if the components are different, then you
must have a separate salary basis for each unique combination of
salary components.
a. True
b False
b. F l

Answer: a

Summary

• Create grade rates and salary bases
• Adjust salaries


8
Define
D fi and
dMManage IIndividual
di id l
Compensation

Lesson Objectives

• Create individual Define Workforce Structures
compensation and
contribution plans
• Configure Define Elements, Balances and Formulas
compensation
history Define and Manage Base Pay

• Award individual Define and Manage Individual Compensation
compensation
• Manage personal Define and Manage Workforce Compensation
contributions
Manage Market Data

Actions: Overview
• Actions:
– Track changes to Human Capital
Management (HCM) records
– Examples: Changes to employment,
assignment or salary records
assignment,
• Action types:
– Identify the type of business process associated with the action

– Determine what happens when you select an action
• Action reasons:
– Optionally, associate actions with reasons
– Use the information for analysis and reporting purposes
Actions
When you create or update HCM records, the action identifies the cause of the creation or
change
g and determines the ppath that yyou take through
g the employment
p y flow.
Examples of employment-related actions: Assignment Change, Transfer, and Termination.
Action Types
If you are creating a new action, you must associate the action with any one of the standard
action types.
Example: The Hire an Employee action type is associated with the Hire action by default.
p y
• Create an additional action Hire Part-Time and associate it with the Hire an Employee
action type.
This causes your action to appear in the actions list on the Hire an Employee page.
• Users can select the Hire Part-Time action when hiring part-time workers, instead of the
standard Hire action.
Action Reasons
Example: Predictions of voluntary termination are based on existing data from terminated
work relationships
relationships, and the action and reason details are particularly useful
useful.

Using Actions with Individual Compensation
Additional actions available are:
• Manage Individual Compensation for manager-administered plans
• Manage
M C
Contributions
ib i f worker-administered
for k d i i d plans
l
Using Actions with Workforce Compensation
One action (Allocate Workforce Compensation) and ten action reasons are provided to use
with workforce compensation plans. You can extend this list to add additional actions and
reasons.

Demonstration
Managing Actions and Action Reasons


Individual Compensation Plans: Overview
• Define compensation that managers can award to individual

workers outside of the regular compensation cycle.
• Create plans that workers use to manage personal
contributions.

Awards can be:

• One-time payments, such as spot bonuses
• Recurring payments,
payments where worker is compensated periodically
periodically, such as car allowance
Payroll contributions can be to:
• Savings plans
• Charitable contribution type plans
Associate eligibility profiles to determine a set of workers eligible for the specific plan and
control plan availability using HR actions.

Plan Options
• Each plan must have at least one option with associated:

– Payroll element details
— Communicate the payment or distribution details to the payroll
processing application.
– Optional eligibility requirements
— Limit who is eligible for the plan.
• You can associate:

– Each option with only one payroll element and input value
– Each payroll element with only one plan and option
Examples
• A company car plan has options consisting of different compensation amounts for each
e c e model.
vehicle ode
• A spot bonus plan has options consisting of different fixed monetary amounts.
When you set up the payroll element, you configure input values that determine:
• Compensation information that managers must enter when they award compensation
under the plan
• Data that workers must enter when managing their own contributions in a plan
• Default values that aid managers or workers with data entry
Example: Configure input value to enter vehicle mileage when issued for company car plan.

Link Individual Compensation Plans to Workforce
p
Compensation Budget
g Pool
• Enable managers to track off-cycle and on-cycle awards from
the same Workforce Compensation budget pool.
• When they allocate individual compensation they can see:
– Amounts given from the linked individual compensation plan
– How those amounts reduce a manager’s workforce
compensation budget


Dates, Eligibility Profiles, and Instruction Text
• Dates
– Select from standard data rules that:
— Specify when plan payments start (and end for recurring
compensation), such as next payroll start date
— Derive start or end date using a formula
— Enable the manager or worker to enter start or end date
• Eligibility profiles

– Control in which compensation plans or options a worker is
entitled to participate
• Instruction text
– Use a rich text editor to:
— Compose instructions for associated managers and workers
— Include hyperlinks to relevant documents and websites
Dates
Deriving start or end date using a formula is discussed in the lesson titled “Define Elements,
Balances and Formulas”
Balances, Formulas .
Eligibility Profiles
You can attach eligibility profiles to a plan, an option, or both.
Example:
• Attach a profile to a company car plan to include only the Sales department.
• Attach other profiles to vehicle model options to restrict luxury models to only executive
positions.
Restriction: If adding multiple profiles, you must mark at least one as required.
Compensation eligibility evaluation processing also uses criteria defined on the element
to determine whether a person is eligible for a compensation plan.

Plan Access Restrictions
• Control the situations in which an individual compensation

plan is available for allocations or contributions by a line
manager or worker.
• Regulate a user’s ability to create, update, or discontinue plan
allocations or contributions
contributions.
• Determine whether to restrict plan access and specify
restriction details by action.


No Access Restriction
If you do not restrict access, plans become available:

• To line managers and workers
• In all pages where individual compensation or personal
contributions can be managed
There are very few situations where you would not restrict access
to a plan.

Warning: Use with caution to avoid granting workers access to manager plans.
Example: If you do not restrict bonus plan access, individual workers can manage the bonus
plan for themselves, from their portrait.

Options for Restricting Access by Action
• Specific HR Actions
– Select one or more HR actions in which this plan should be
available to the line manager or HR specialist for eligible
workers during the corresponding HR transaction.
• Manage Individual Compensation
– Make the plan available to line managers in the Manager
Resources Dashboard or Person Gallery.

– Select other HR Actions.
• Manage Contributions
– M
Make
k a worker
k contribution
t ib ti plan
l available
il bl to
t eligible
li ibl workers
k
from their portraits.
• All
– Make the plan available for all actions in list.
Specific HR Actions
Example: Add a transfer action to a moving allowance plan to make it available when
transferring a worker.
worker
Manage Individual Compensation
If you select other HR actions and do not select this option, the plan would be available to the
manager only within the selected HR action transaction, such as a promotion transaction.
Manage Contributions
Warning: Do not select any additional actions for the worker contribution plan.
All
It is similar to not restricting access, except that you can specify access details that apply to
all actions.
Warning: Use this option with caution; both workers and managers have access to the plan.

Compensation Plan Allocation Access Level
• For each selected action, restrict access separately for

creating, updating, and discontinuing allocations.
• Define access time periods for each allocation access level:
– Always allowed
– Never allowed
– Allowed during specified period

Example: Allow workers to enroll in a plan only during November of each year by specifying
monthly date range in each year for the new allocations access level.

Demonstration
Managing Individual Compensation Plans


Questions to Help You Design Individual Compensation
Plans
• How many different plans do you need?
• How many options do you need per plan?
• How many legal employers are there?
• In how many currencies are workers paid?
• What are the eligibility requirements for each plan?
• When can compensation be awarded for the first time,
updated, or discontinued?

• For what HR Actions will the plan be available?
Examples:
– Severance plan is available for Termination action
– New Hire Bonus plan is available for New Hire action
How Many Options Do You Require

You must set up a separate payroll element for each option in the plan.
• At what employment level will you set up payroll elements?
• What eligibility will you set up at the element eligibility level?
• What input values do you want to display in the award window—such as amount,
targets, minimums, and maximums?

Group Discussion
• What are some of the individual compensation plans you

might use in your enterprise?
• Would you need multiple options on your plans?


Managing Individual Compensation and Personal
Contributions
Role Standard Tasks Work Areas
Compensation Manager Compensation
Line Manager Manager Resources

Manage Individual
Dashboard
Variable Compensation,
Person Gallery

View History
HR Specialist Person Gallery
Person Management
Worker Enroll and Manage My Portrait

Personal Contributions
Line managers can award compensation in a variety of business flows and work areas.
Compensation managers and HR specialists can perform the same tasks for administrative,
oversight, and troubleshooting purposes. They can:
• Award ad hoc bonuses, allowances, and other compensation
• Initiate and update recurring payments
• View a worker’s compensation history to help determine if an award is deserved and to
view past award amounts

Managing Compensation
Use the Manage Compensation task (or action) to view and

allocate off-cycle compensation to workers.

Whether you can enter start and end dates for the award is based on plan configuration.
The Details section attributes are displayed based on how the input values are defined for the
payroll element linked to the plan.
Note: You can update and delete an award while in the transaction or update compensation
not yet paid.

Variable Allocation Approvals

• VariableAllocationTask
• VariableAllocationFYITask

The actionable Variable Allocation task has rules with default details such that the task
applies to all allocations, it uses two levels of the Supervisory list builder, and requires a
response from the current approver.
The informational task is only for notification and has no rules.
You can change:
escalation policies, and notification settings for all tasks
Note: These approval flows do not apply to workforce compensation
compensation.
For more information about approvals in compensation see the Compensation Approval

Practices
• 8-1: Creating the Spot Bonus Payroll Element

• 8-2: Creating the Rail Public Transportation Allowance Payroll
Element
• 8-3: Creating the Bus Public Transportation Allowance Payroll
El
Element t
• 8-4: Creating the Public Transportation Allowance Plan
• 8-5: Creating the Spot Bonus Plan

• 8-6: Creating the International Red Cross Plan
• 8
8-7:
7: Awarding Public Transportation Allowance and Spot
Bonus
• 8-8: Approving the Public Transportation Allowance and Spot
Bonus
• 8-9: Managing a Charitable Contribution

Introducing Compensation History
• Compensation history is available for various HCM business

process flows.
• Overview displays up to five years of compensation history
and is organized into four sections.
Overview Section Description
Salary Displays a history of base pay changes

Stock History Displays worker’s data available in the stock
history table
Other Compensation Displays the history of compensation that is paid

using element entries
Recurring Payments Displays the compensation paid on a regular basis

(such as car allowance) using element entries

Configuring Compensation History: Automatic and
Manual
• Automatically Included
Compensation history automatically retrieves:
– Salary category: Base pay history from salary table
– Stock category: Stock share grants from stock table
• Manually Configure
– Add other compensation and recurring payments on the
Manage Compensation History page by selecting:

— Desired payroll elements
— Examples: Spot Bonus or Regional Sales Car Allowance
— Relevant corresponding input value configured for the element
Payroll element definition automatically:

• Supplies remaining data
- Element and reporting names
- Country and LDG
• Determines history category based on recurrence of payroll element

Demonstration
• Viewing Compensation History

• Adding Elements to Compensation History


Quiz
Q
For which business object must you select an action and optional
action reason that are associated with all salary and assignment
records when you transfer data to HR after the cycle is complete?
a. Base pay
b Individual
b. I di id l compensation
ti plan
l
c. Workforce compensation plan

Answer: c

Quiz
Q
Which business object do you associate with specific actions to
make it available in the HR flow for that action?
a. Base pay
b. Individual compensation plan

Answer: b

Quiz
Q
For which business object do you associate an action and
optional action reason with each salary change?
a. Base pay
b. Individual compensation plan

Answer: a

Quiz
Q
Each individual compensation plan must have at least one plan
option.
a. True
b. False

Answer: a

Quiz
Q
You can associate each payroll element with multiple individual
compensation plans and plan options.
a. True
b. False

Answer: b

Quiz
Q
You can derive individual compensation plan start and end dates
using formulas.
a. True
b. False

Answer: a

Quiz
Q
You can attach eligibility profiles to:
a. Plans
b. Options
c. Both
d. Neither

Answer: c

Quiz
Q
If you do not restrict access, plans become available:
a. To line managers and workers
b. In all pages where individual compensation or personal
contributions can be managed
c. For all of these users and pages
d. For none of these users and pages

Answer: c

Quiz
Q
Compensation History automatically retrieves data for which
history elements:
a. Other Compensation
b. Recurring Payments
c. Salary
d. Stock
e. All of these history elements

f. None of these history elements
Answer: c, d

Summary

• Create individual compensation and contribution plans
• Configure compensation history
• Award individual compensation
• Manage personal contributions


9
Manage Workforce
M W kf
Compensation Plans: Overview

Lesson Objectives

• List the main Define Workforce Structures
features and
capabilities of Define Eligibility Profiles
O l F
Oracle Fusion
i Define Elements, Balances and Formulas
Workforce
Compensation Define and Manage Base Pay

• Describe the Define and Manage Individual Compensation
global settings for
all plans Define and Manage Workforce Compensation
Manage Market Data

Workforce Compensation Worksheet


Key Features and Capabilities
• Facilitate review cycles for global organizations, such as:

– Annual focused review cycles
– Annual review cycles based on anniversary of hire
• Allocate multiple types of compensation.
• Manage budgets at the manager level or the individual worker
level.
• Create models to automatically determine worker allocations,

budget amounts, and targets.
• View p performance ratings
g and rate p
performance.
• Promote workers.
• Review and approve work of lower managers.
• Analyze allocations using online reports.
• Generate compensation change statements.

Compensation Plan: Important Design Choices
To begin, you must decide how many compensation plans you

require and what types.
Then, you must decide whether to:
• Enable one or more components
• Integrate with Oracle Fusion Performance Management
• Enable budgets and, if so, how to manage them
• Enable modeling

• Override the default access
• Enable currency switching
• Generate worker statements
• Notify and alert managers
• Create multiple hierarchies

Decision Points
These are some of the questions to consider when planning

compensation plans:
• Who is eligible for the plan?
• Who should have access to the setup, administrator, and
worksheet
k h t pages? ?
• What does the reporting hierarchy look like?
• What types of compensation are being allocated?

• What are the budgeting requirements?
• What are the cycle timing requirements?
• What do you want the worksheet to look like?
• Where does the data come from and how do we display it?

Decision Points
• Do you use performance ratings while allocating

compensation?
• How much discretion and control do managers have?
• How do you want to keep managers informed?
• How do you communicate awards and promotions to workers?
• Do you want primary line managers to delegate workers to
another manager for review?


Demonstration
Introducing Workforce Compensation


Global Settings
Global settings affect all workforce compensation plans in the

enterprise and override plan-level settings.
They are grouped into the following categories:
• General
• Notifications
• Watch list
• Stock

• Task pane

Configuring Global Settings
• General
– Information applicable to all plans:
— Modeling
— Manager switching
— Click to edit in the worksheet
• Notifications
– Send to affected managers or approvers when certain actions

occur. Choices are:
— Always send
— Prompt manager
— Disable notification
— Enable or disable approvals notifications.

• Watch List
– Defines how plan and budget status information appears on the
welcome page. Applies to all workforce compensation plans.
• Stock
– Define
D fi d default
f lt market
k t price
i ffor awards.
d P Price
i iis used
d iin:
— Workforce compensation plans
— Total Compensation Statements

• Task Pane
– Define and rename the page titles and the task pane group
headings in the Workforce Compensation workork area.
area
— Enable or disable task.
— Define the number of objects shown.

Managing Workforce Compensation Approval Tasks

• Worker eligibility changes
• Worker reassignments on the worksheet
Task Rules Rule Default Hierarchy Notification

Details Levels
ChngEligTask Yes Supervisory list builder One Level Actionable

Response required
ChngEligFYI No NA NA FYI
RsgnWorkerTask Yes Supervisory list builder One Level Actionable

Response required
RsgnWorker FYI No NA NA FYI
You can change:

escalation
esca at o po
policies,
c es, a
and
d notification
ot cat o sett
settings
gs for
o aall tas
tasks
s
For more information about approvals in compensation see the Compensation Approval

Demonstration


Group Discussion
• What factors would you consider in setting up different types

of compensation plans?
• When would you want to configure settings across all
compensation plans?


Defining Workforce Compensation
Tasks you complete to set up workforce compensation plans:


Summary

• List the main features and capabilities of Oracle Fusion
• Describe the global settings for all plans


10
Configure
C fi W
Workforce
kf
Compensation Plan Foundation

Lesson Objectives

• Create a workforce compensation plan and add plan details
• Associate an eligibility profile with a plan
• Create a plan cycle and define dates related to the cycle
• Configure primary and secondary hierarchies and other
reviewers
• Configure currency

• Configure plan access
• Enable managers to give feedback at the end of a
compensation cycle

Workforce Compensation Setup Tasks
Configure Workforce Compensation Plan Foundation
Configure Workforce Compensation Budgets
Configure Workforce Compensation Worksheets

Configure Workforce Compensation Models and Reports
Validate Workforce Compensation Plans

Managing Compensation Plans
Plans are the basis for all workforce compensation setups.

• Manage Compensation Plans
– Create new plans.
– Duplicate existing plans.
– Import and export plans.
– Delete plans.
– Edit existing plans.

– View plan status.
• Define Workforce Compensation
p Task List
– Go to tasks.
– See setup status.
– Tasks do not need to be completed in order, but some tasks
are dependent on others.

Demonstration


Plan Details
Configure the basic details that control the high-level workings of

the plan.

Display Order
This is the order in which you want the plan to appear in relation to other plans.
Plans with a display order of 1 through 5 appear in the task pane under the Manage Plans
grouping.
Frequency
It is used to calculate the adjusted salary when salaries are paid in different frequencies.
Managers can view and compare all salaries in the same frequency when hourly, monthly,
and annually paid workers are included in the same plan.
Annualization Factor
It is used to convert base pay in the selected frequency to an annualized amount.
Example: Multiply monthly salary by a factor of 12 to calculate the annual salary amount.
Plan Description
An optional description to display in a window when managers select a plan from their list of
available plans
p

Employment Record to Use
Determine:
• Employment records evaluated by the Start Compensation Cycle process
• Which
Whi h records
d are used
ddduring
i ththe compensation
ti cycle
l
Plan Status
• You can run the Start Compensation Cycle process for active plans.
Note: Inactive plans cannot be processed.
Action and Action Reason
Theyy are associated with all salary
y and assignment
g records when yyou transfer data to HR
after the cycle is complete.
One action and ten action reasons are delivered. Extend this list to add additional actions and
reasons.

Demonstration
Configuring Plan Details


Group Discussion
What factors would you consider when you add details to different
types of compensation plans?


Plan Eligibility
• Eligibility profiles determine the workers that are eligible for a

compensation plan.
• Link only participant eligibility profiles with a profile usage of
Compensation or Global to a compensation plan or
component.
component
• Track ineligible workers on the worksheet if you want
managers to see both eligible and ineligible workers on their

worksheets.
• Hide if you don’t want managers to see them.
Eligibility Profiles
To be eligible, participants must satisfy:
• All required profiles
• At least one optional profile, if optional profiles are associated with the plan
Track and Hide Ineligible Workers
Track ineligible workers:
• Worksheet displays the ineligible workers but managers can't allocate compensation,
promote workers, or rate worker performance.
• Managers or administrators can request an ineligible worker's status be changed to
eligible.
Hide ineligible workers: The worksheet doesn't display the ineligible workers on the
worksheet.

Demonstration
Configuring Plan Eligibility


Plan Cycles
A plan can have multiple compensation cycles, each with unique

period dates.
• Create plan cycles and configure all the dates related to the
plan cycle.
• You
Y can d duplicate
li t a cycle
l and
d specify
if th
the number
b off monthsth
to advance all dates.


Configuring Plan Cycles
Define the following plan cycle dates:

• Evaluation period start and end dates
• Plan access start and end dates
• Worksheet update period start and end dates
• HR data extraction date
• Eligibility determination date

• Currency conversion date
• Performance rating date
• Promotion
P ti change
h d
date
t
• Default due date
• Evaluation period start and end dates

- Period in which you evaluate workers for compensation
• Plan access start and end dates
- Period in which managers can see active plans in read-only mode
• Worksheet update period start and end dates
- Period in which managers can update active plans
• HR data extraction date
- Date on which the application initially extracts person and assignment data from
HR and places it in the compensation tables for use
se d
during
ring the compensation ccycle
cle
• Eligibility determination date
- Date on which the application evaluates workers’ records for eligibility
• Currency conversion date
- Date on which the application obtains conversion rates from the GL daily rates
table used to convert monetary amounts into different currencies

• Performance rating date
- Date to use for compensation performance ratings
- Use the same date in multiple plans to share compensation performance ratings
between those plans
• Promotion change date
- Date on which job, grade, and position changes take effect
- Use the same date in multiple plans to share promotions across plans.
• Default due date
- Date by which all worksheets are to be submitted
- Displayed to managers on the Approvals tab
- Informational only

Demonstration
Configuring Plan Cycles


Plan Hierarchies
Create up to three different views for a plan to determine :

• Who are primary worksheet managers
• Which workers appear on manager’s worksheets
• How budgets roll down and approvals are routed, for primary
hierarchy

Hierarchies
• Primary Hierarchy: main hierarchy of worksheet managers
• Secondary Hierarchy: see subordinate workers and propose allocations
• Other Plans for Review: see one delegated worker and propose allocations
Note: The Secondary and Other Plans for Review hierarchies are optional. Other reviewers
don’t have to be managers.
Source
Select how to determine the hierarchy:
• Primary manager hierarchy: Primary worksheet manager associated with the worker's
assignment record
• Other manager hierarchy: Manager type associated with the worker's assignment, such
as project manager or resource manager
• Formula: Custom hierarchy created using a fast formula
• Position tree: Structure of the position tree
• Department tree: Manager defined for a department tree

Hierarchy source determines:
• Route the worksheets take to get to the highest level approver
• How budgets are pushed down the organization when using manager level budgeting
• How budgets roll up when using worker level budgeting
• Workers that appear on each manager’s worksheet
Missing Manager Handling
How to handle a worker who does not have a manager:
• Leave blank (compensation administrator fixes manually)
• Use primary manager
• Search tree until found (available when you select position or department tree)
Missing Relationship Records
Record missing relationships in the Start Compensation Cycle and Refresh Compensation

Data process log files
Default Access Level
Select one of these access levels:
• Updates allowed
• No updates allowed
• No access
Or, use a formula when you want different sets of managers to have different access.

Demonstration
Configuring Plan Hierarchies


Plan Currency
• Set the corporate currency and default display currency for

the plan.
• Enable managers to switch among currencies when you are
compensating a global workforce and workers are paid in
multiple currencies.
currencies

When currency switching is enabled, managers can view and allocate amounts in:
• Each worker’s local currency
• The corporate currency
• A preferred currency
Currency switching is for display purposes only:
• Approved awards are posted in each worker’s local currency.
• If using budgets, budgets are managed in the corporate currency.

Demonstration
Configuring Plan Currency


Plan Access
Override the default access by manually choosing the roles that

have access to a plan.
• Access restrictions override the general access given to each
role.
• Limit
Li it who
h can access ththe plan
l ffrom th
the W
Workforce
kf
Compensation or Compensation work areas to only those
roles set up on this page.

• Roles that are not allowed to update have view-only access.
Plan access is specific to each plan. If other plans should have restricted access, you must
configure the access for each plan.
When you enable plan access, all roles have no access by default. You must add roles to
grant access to the Compensation and the Workforce Compensation work areas.
For example, you will likely want to add the Line Manager role to the Workforce
Compensation work area and the Compensation Manager role to the Compensation work
area.
Roles with no update access can only view information.

Configuring Plan Access
Work Areas
• Workforce compensation plans are accessed and managed
from two work areas:
– Compensation
– Workforce Compensation
Default Access for Roles
• Compensation Manager

Compensation is the work area where plans are administered.

• Example pages:
- Setup
- Plan and Worker Administrative
- Processing
Workforce Compensation is the work area where managers:
• Budget
• Allocate compensation
• Manage models
The Compensation Manager job role has default access to:
• Administer Workers pages, to view and update worker information
• Manage Global Models page
• Worksheet from the Workforce Compensation work area
• Administrative reports, to analyze results of compensation cycles

The Compensation Administrator job role has default access to:
• All setup pages
• Manage Active Plans page
• Run Batch Processes page
• Configure Global Settings page

Demonstration
Configuring Plan Access


Feedback Survey
Optionally request that managers provide feedback when they

submit their worksheets.
Line managers can:
• Provide feedback immediately after they submit their
worksheets
k h t ffor approvall
• Access the survey from the Take Actions list on the
Compensation Plans page

Compensation managers view the feedback in a report.

Rating the Compensation Cycle
Request that managers provide an overall rating of the compensation cycle by:
• Enabling the ratings you want to use
• Configuring the rating labels that managers see
• Providing instructions
Survey Questions
Ask up to five questions that you want managers to answer when they submit their
worksheets.

Demonstration
Configuring Feedback Survey


Practices
• 10-1: Creating a Compensation Plan

• 10-2: Configuring Plan Details
• 10-3: Configuring Plan Eligibility
• 10-4: Configuring Plan Cycles
• 10-4 Configuring Plan Hierarchies
• 10-5: Configuring Plan Currency

• 10-6: Configuring Feedback Survey

Quiz
Q
To be eligible for a plan, a worker must satisfy only one required
eligibility profile.
a. True
b. False

Answer: b
False. To be eligible, participants must satisfy all required profiles and at least one optional
profile if optional profiles are defined
profile, defined.

Quiz
Q
Which plan cycle date is informational only?
a. HR data extraction date
b. Eligibility determination date
c. Currency conversion date
d. Performance rating date
e. Default due date

Answer: e

Quiz
Q
The primary hierarchy is required, but the Secondary and Other
Plans for Review hierarchies are optional.
a. True
b. False

Answer: a

Quiz
Q
Approved awards are posted in which currency?
a. The worker’s local currency
b. The corporate currency
c. The department currency

Answer: a

Quiz
Q
The compensation administrator has default access to what
compensation work area pages?
a. All setup pages
b. The Manage Active Plans page
c. The batch processing pages
d. All of these pages
e. None of these pages

Answer: d

Quiz
Q
A feedback survey is optional.
a. True
b. False

Answer: a

Summary

• Create a workforce compensation plan and add plan details
• Associate an eligibility profile with a plan
• Create a plan cycle and define dates related to the cycle
• Configure primary and secondary hierarchies and other
reviewers
• Configure currency

• Configure plan access
• Enable managers to give feedback at the end of a
compensation cycle

11
Configure
C fi W
Workforce
kf
Compensation Budgets

Lesson Objectives

• Enable budgeting and create two budget pools
• Define budget page layout




Budgeting: Overview
Budgeting is optional. If you choose to enable it, you create one

or more budget pools and link them to particular compensation
components. You can:
• Have separate budgets for each component
• Link
Li k a b
budget
d t tto more ththan one componentt

Note: You can hide a budget pool from managers, but allow administrators to see when
acting as proxy.

Budget Pools
Budget pools consist of:

• Budgeting method
• Budget storage method
• Budget publishing
• Budget units
• Over-allocations for budgets and compensation

Budgeting Method
Distribute the budget at the manager or worker level.
• Manager Level Budgeting
- Higher level managers distribute budgets to lower level managers.
• Worker Level Budgeting
- Line managers allocate budgets to individual workers.
- The sum of all individual worker budgets determines a manager’s overall budget.
Budget Storage Method
• Amount
Manager’s budget does not change when workers move to another manager’s
worksheet or a workers eligible salary changes.
• Percentage
Manager’s budget changes dynamically when workers are reassigned between
worksheets, lose or gain eligibility, or eligible salary changes.
Budget Publishing
Automatically publish budgets to all managers when the compensation cycle is started.

Budget Units
Default value for budgets is Monetary.
Select non-monetary units for nonmonetary compensation plans, such as stock allocations.
O
Over-Allocations
All ti for
f Budgets
B d t and
d Compensation
C ti
Allow managers to:
• Budget more to their lower managers than was budgeted to them and set a maximum
percentage over budget
• Allocate more compensation to workers than was budgeted to them and set a maximum
amount that can be over-allocated

Demonstration
Introducing Budgeting


Group Discussion
What factors would you consider in setting up different types of

budget pools?


Budget Page Layout
For each budget pool, you configure how the Budget Details page
appears to the line manager.
Budget Display
• Configure the budget page for each budget pool.
• Optionally, import the configuration from one budget pool in
one plan into another budget pool in a different plan.


Budget Page Layout

Select and configure the columns you want to appear on these pages:
• Allocate Budgets
• Worker List

Configuring Budget Page Layout
• Summary and Details

• Configure Column Properties
• Worker List
• Actions
• Instructions

Summary and Details

Select the columns that you want displayed in the Budget Summary section and Detail Table
for the selected budget pool. You can:
• Disable and enable columns
• Rename columns
• Change the order in which the columns appear
Refresh the column preview to see the:
• Columns displayed
• Order
O d iin which
hi h they
h appear
Note: If you configure the budget pool to automatically publish, for the budget distribution
amount or percentage columns on the Details tab or the Worker List tab, you must enter a
percentage or amount to automatically publish. Enter the information on the Default Values
tab of the Properties dialog box for the column.

Configure Column Properties
Configure column properties for the Summary, Detail Table, and Worker List columns.
The number of tabs and the associated options available on the dialog box vary depending on
the type of column you are configuring.
• General:
G l Configure
C fi th
the di
display
l and d storage
t off d
data.
t
• Default Values: Specify settings that control the default values displayed in the budget
sheet.
• Information: Add informational text about the column.
- The text appears when managers hover over a Help icon that appears after the
column header.
Worker List
Configure the Worker List page the same way you configure the summary and detail table.
The availability of the Budget Amount and Budget percentage columns changes depending

on the budget method for the budget pool:
• Enabled and updateable for a Worker Level Budgeting method
• Disabled for a Manager Level Budgeting method
Actions
Enable actions you want managers to be able to perform when managing their budgets.
These actions are:
• Separate from the worksheet actions
• Specific to the budget
Instructions
You can add text or hyperlinks to appear at the top of the budgets page.

Demonstration
Configuring Budget Page Layout


Practices
• 11-1: Configuring Budget Pools

• 11-2: Configuring Budget Display


Summary

• Enable budgeting and create two budget pools
• Define budget page layout


12
Configure
C fi W
Workforce
kf
Compensation Worksheets

Lesson Objectives

• Enable components and create two components
• Enable and configure performance ratings
• Enable worker statements and select a statement group
• Configure worksheet tabs and how they appear on the
worksheet
• Enable predefined alerts and configure a custom alert




Compensation Components
Create up to five components to represent the different types of

compensation you want to award within a plan.

Types of Components
They can be the same type, such as salary components:
• Examples:
- Merit
- Cost of living
Or, they can be different types:
• Bonuses
• Stock options

Configuring Compensation Components
• Budget Pools
– Linked to a component
– One primary component for budgeting
– Eligibility requirements
• Local Currency Determination
Determines:
– From where each worker’s local currency is obtained

– In what currency compensation is posted
Budget Pools
• Link a budget pool to a component to track worker allocations against that budget.
• When multiple components share the same budget pool pool, one component must be a
primary component for budgeting.
• If each component has different eligibility requirements, the total of eligible salaries of
the eligible population of the primary component is used for budgeting.
Local Currency Determination
• For Salary Components
- The best practice is to use Salary Basis Currency so that salary adjustments post
to each worker's salary record in the same currency as their base salary record.
• For Lump Sum Payments
- The best practice is to use Element Input Currency so that the currency used to
pay the bonus matches the input value currency used to pay it.

Configuring Compensation Components
Configuration Considerations
• Component number refers to the set of component columns
you configure for the worksheet layout.
• Display order determines the order in which components
appear in
i th
the summary ttable
bl off th
the worksheet.
k h t
• Local currency determination determines how approved
awards are posted to salary records or to payroll when you

use multiple currencies.

Demonstration
Configuring Components


Performance Ratings
If you consider performance ratings when allocating

compensation, you can use performance ratings in the worksheet
in the following ways:
• Display ratings from Oracle Fusion Performance
Management.
Management
• Rate workers during a workforce compensation cycle.
• Use Both Performance Management Ratings and

Compensation Ratings.
Display Performance Management Ratings

• Display performance ratings given in Performance Management.
• Provide access to the full performance document from within the worksheet.
worksheet
• Select the performance document template, the performance period to make available,
and whether to display only completed ratings or ratings in any status.
• Update overall performance rating, overall goal rating, and overall competency rating in
the worksheet.
Note: Ratings updated in Performance Management automatically update in the worksheet
and vice versa.
Rate Workers Within Workforce Compensation
• Managers rate workers as they allocate compensation.
• Ratings are used within only the current compensation plan and cycle.
They are not transferred to HR or Performance Management.
• Select a rating model to use, edit an existing rating model, or create a new one.
• Select the method to rate performance
performance, by:
- Selecting the rating from a list of values
- Designating the number of stars to represent the worker’s rating

Use Both Performance Management Ratings and Compensation Ratings
• Display both ratings in the worksheet.
• Use both as a point of comparison.

Demonstration
Configuring Performance Ratings


Approvals
• Specify the timing when managers:

– Approve their lower managers’ worksheets
– Submit their worksheets for approval
• Alternate Manager Approval Hierarchy
– Create an alternate manager approval hierarchy that overrides
the plan hierarchy for specific line managers.

Note: The hierarchy type defined for the plan determines the approvals hierarchy.
Create an alternate manager approval hierarchy if you want approvals to occur:
• In a different sequence
• By different people

Configuring Approvals
• Approval Mode: Identifies when managers can approve their

lower managers’ worksheets
– Options are:
— Approve anytime
— Manager must first submit
• Submit Mode: Identifies when managers can submit their
worksheets

– Options are:
— Submit anytime
— All managers must be approved

Alternate Approver is Final Approver
In this example, the alternate approver is at the end of the

approval process.

Carlos, the CEO, is the top manager in the hierarchy. After he approves all worksheets below
him and submits his worksheet for approval, it goes to HR for final approval.
When Carlos submits his worksheet for approval, Maria is notified. Carlos's
Carlos s worksheet status
is In Approvals until Maria approves it and it becomes fully approved.

Alternate Approver is Final Approver
This table shows how you build the alternate approver table that
corresponds to this final approval flow diagram.
Primary Worksheet Approval Alternate

Manager Sequence Approver
Carlos 1 Maria


Alternate Approver Precedes Final Approver
In this example, an intermediate approver precedes the final

approver.

Carlos, the CEO, does not participate in the compensation approval process of his
organization for managers under Sara. When Sara submits her worksheet, it goes to HR for
final approval.
Maria is an intermediate approver of Sara's worksheet.
The approval flow is:
1. Maria is notified when Sara submits her worksheet for approval.
2. Maria approves Sara's worksheet. Sara and all lower managers' worksheets statuses
are now In Approval.
3 Carlos sees that Maria approved Sara's
3. Sara s worksheet
worksheet.
4. If Sara is eligible for compensation, Carlos allocates an amount to her and saves his
worksheet.
5. Carlos must approve all the worksheet for Sara and her lower managers for them to be
fully approved.

Alternate Approver Precedes Final Approver
Primary Worksheet Approval Alternate

Sara 1 Maria


Alternate Approver in Middle of Standard Hierarchy
In this example, the approval flow returns to the original hierarchy

after the alternate manager approves.

John reports to Vijay based on the plan hierarchy. However, John's entire team did a special
project for Lakshmi during most of the past year. Sara wants Lakshmi to review and approve
the compensation for John's team rather than Vijay.
Lakshmi approves John's worksheet and the rest of the approvals occur within the standard
hierarchy.
The approval flow is:
1. Lakshmi is notified when John submits his worksheet for approval.
2. From the notification, Lakshmi approves or rejects the worksheet.
3 Vijay sees that Lakshmi approved John's
3. John s worksheet by looking at the approval tab of his
own worksheet. In the detail table, John's worksheet status is In Approvals.
4. Vijay is now able to submit his worksheet to progress the approval process.

Alternate Approver in Middle of Standard Hierarchy
Primary
y Worksheet Approval
pp Alternate
John 1 Lakshmi


Instructor Practice
Configuring Approvals


Compensation Change Statements
They enable managers to generate compensation statements for

their workers by associating a plan with a statement group.
• Make different sets of statements available for different plans
or plan periods.
• Specify
S if the
th statement
t t t timing
ti i and d output
t t format.
f t


Configuring Compensation Change Statements
• Statement Group
– A set of related templates used to generate compensation
change statements available within the same plan
• Statement Templates
– Available
A il bl tto managers who
h are associated
i t d within
ithi th
the plan
l
• Predefined Templates

Statement Group: Create as many statement groups as you want but associate only one
with a plan.
Example: Create three templates in different languages, add the three templates to a
statement group, and add the statement group to a plan.
Statement Templates: The templates are created as RTF files.
You can:
• Download and preview already uploaded templates
• Upload new templates
• Download,
Do nload modif
modify, and upload
pload e
existing
isting templates
Predefined Templates
• All Attributes Template: Contains a list of all the attributes that you can include in your
statement template
• Compensation Change Statement: Is a sample template
Note: You can search for the White Paper Workforce Compensation Configuring the
St t
Statement tT
Template
l t 1518935.1
1518935 1 on MMy O
Oracle
l S
Support.
t It d
describes
ib h how tto create
t th
the RTF
template.

Demonstration
Configuring Compensation Change Statements


Practices
• 12-1: Configuring Components

• 12-2: Configuring Performance Ratings
• 12-3: Configuring Compensation Change Statements


Worksheet Display: Overview
You can configure how information appears on the worksheet.

• The worksheet consists of up to ten tabs of six different tab
types.
– Configure each tab separately.
• You can import the entire worksheet display from another
plan.

On the Define Workforce Compensation page > Worksheet Task List section > Configure
Worksheet Display row > click Go to Task to open the Configure Worksheet Display page.

Worksheet Display Tab Types
• Compensation
• Approvals
• Communicate
• Performance
• Promotion
• Detail Table Only

Compensation Tab
• Summary section displays a summary of data for the components defined for each
compensation
co pe sat o tab
tab.
• It displays the columns you configure.
Approvals Tab
• Summary section displays up to eight subtabs with analytics.
• Lists lower level managers and shows the status of their worksheets
• Is used by higher level managers to:
- Approve
A or reject
j t lower
l llevell managers’’ worksheets
k h t
- Change lower level managers' access to their worksheets
• Is required when:
- Components are enabled
- Promotion or performance only plan
Communicate Tab (Optional)
• Is used to generate compensation statements
• Lists workers eligible for the plan

Performance Tab (Optional)
• Summary section displays a summary of performance ratings.
• It allows you to display the same columns that are available on the compensation tab
type but enables the ones related to performance by default
type, default.
Promotion Tab (Optional)
• Summary section displays a summary of job, grade, and position changes.
type, but enables the ones related to promotion by default.
Detail Table Only Tab (Optional)
• There
Th is
i no summary section.
ti
type, but enables the commonly used ones by default.

Note: When components are enabled you can use the following tab types to allocate
compensation:
• Compensation
• Performance
• Promotion
• Detail Table Only

Worksheet Page Layout
Select and configure the columns you want to appear on the

worksheet.
• Commonly used columns are enabled by default, which you
can disable.
• Rename
R columns
l and
d change
h th
the order
d iin which
hi h th
they appear
on the worksheet.
• Create different tabs focused on different types of

compensation.
• Refresh the column preview to see the columns displayed and
the order in which they will appear.

Worksheet Page Layout

On the Configure Worksheet Display page, click the Configure Tab Layout icon to open the
Configure Worksheet Page Layout page.

Summary Sections
• Summary Components
Select the components you want to appear in the worksheet's
summary region.
• Summary Columns
Properties of the Summary columns can be different than
those of the Detail columns.
– Compensation Type tab

– Performance Type tab
– Promotions Type tab
Summary Components
• Compensation type tabs only
• Sum data for selected components
• Enable analytics
• Hide components by tab
Summary Columns
• Compensation Type Tab
The summary columns are organized into these groups:
- Component
- Eligibility
- Allocation Totals
- Budget Totals
- Miscellaneous Rates
Note: Miscellaneous rates work like custom numeric columns, but they appear in the
summary not the detail table.

• Performance Type Tab
The summary columns are:
- Performance Rating
- Workers with Compensation
- Actual Percentage
- Target Compensation Percentage
- Target Compensation Percentage Minimum
- Target Compensation Percentage Maximum
• Promotions Type Tab
Select and configure:
- Up to ten sub tabs
- Summary table columns

- Summary table rows for organizational averages subtab
- Display options

Detail Table Columns
The detail table columns are organized into these groups:

• Worker personal information
• Alerts to notify managers
• Employment or assignment term details
• Salary information
• Components 1 through 5

• Promotion information
• Performance ratings and information
• Custom
C t columns
l you configure
fi
• History, notes, and attachments
Note: Detail table is not available for approval and communications type tabs.

Configuring Column Properties: Overview
Configure column properties for the summary and detail table

columns. The number of tabs and options available on the dialog
box varies depending on the type of column you are configuring.

On the Configure Worksheet Page Layout page, click the Configure Column Properties icon
to open the Configure Column Properties dialog box.
• Ge
General:
e a CoConfigures
gu es tthe
eddisplay
sp ay a
and
d sto
storage
age o
of data
• Visibility and Access:
- Defines general access for the column
- Overrides access based on the presence or absence of roles
• Default Values: Specifies settings that control the default values displayed in the
worksheet
• Element Mapping: Identifies how to transfer approved compensation awards to HR for
component columns
- You can post the compensation as an adjustment to base pay and optionally link it
to a salary component.
- If the compensation is a lump sum payment, you can add the payroll element to
use to pay the award.
• Information:
- Enables you to add informational text about the column
- The text appears when managers hover over a help icon that appears after the
column header.

Configuring Column Properties: General
Configure the display and storage of data. Options vary

depending on the type of column configured.

• Data Type: Indicates number or character

• Rounding Rule: Indicates how you want numbers to round.
• Decimals to Display: Indicates number of decimals
decimals.
• Show Numeric Separators: Display numeric separators.
• Default Sequence: Sequence the column appears in relation to the other columns.
• Monetary: Display monetary values. The application converts the values when
managers change the worksheet display currency.
• Include in Audit Trail: Include changes made to this column in the audit trail.
• Val e Remains Unchanged:
Value Unchanged The percentages stored in certain col columns
mns are to remain
static and not change even when the corresponding amount changes.
• Lookup Type: Display the related lookup type for the list value. Available for custom list
columns only.
• Display Total for All Components: Display a total for all components in the summary
section of the worksheet. Available for numeric columns in the summary tab only.

Configuring Column Properties: Visibility and Access
Use the tab to:

• Configure if a column is visible and who can view or update it.
• Secure column based on presence or absence of a user role.

Main Column Settings

The main column settings control column access when you don't select overrides. When you
do select override roles, these settings control column access for all other roles.
• Enable: Display the column on the worksheet.
• Read-only: Make the column not editable on the worksheet
• Initially hidden: Hide the column in the worksheet until the manager selects to display it
in the worksheet. Managers can add the hidden column to their worksheet by using the
View menu
Role – Based Overrides
You override main column values on the worksheet based on role by selecting an override
setting and adding one or more roles. Overrides apply only to roles added.
• Not Enabled: Disable previously configured setting
• Read Only: Role has read only access
• Updateable: Role has update access
• Blank: Don’t override the main column values

Specify how the override settings apply to the roles you selected by selecting
• User has any of these roles
• User has none of these roles

Configuring Column Properties: Default Values
Specify settings that control the default values displayed in the

column. Values populate the column when you run:
• Start Compensation Cycle process
• Refresh Data process (select to include)

• Default Value: Enter an initial, specific value for a column.

• Default and Override Formula: Override any existing values and display values using
tthe
e Co
Compensation
pe sat o Default
e au t a
and
dO Override
e de formula
o u a type
type.
• Compensation Derived Factor: Display values using a compensation derived factor.
• Cross Reference Fields: For certain columns you have the option to cross reference
data from other columns and plans.
• External Data Record Type: User-defined lookup that stores record type from another
system or third party.
• External Data Column: Source column for values from the external data table.

Configuring Column Properties: Element Mapping
Identify how to transfer approved compensation awards to HR.

Post as Salary is Yes

• Use for adjustments to base pay.
• Optionally map to a salary component.
component
Post as Salary is No
• Use for lump sum payments.
• Add payroll elements to use to pay the compensation award.
• Add multiple elements for payments in different currencies of workers in different LDGs.

Other Worksheet Configurations
• Approval Subtabs
– Enable subtabs and related second-level tabs for the approvals
type tab.
• Worker Detail Columns
– Approval
A l ttype tab
t b only
l
– Shows worker details from count of workers in analytics
• Actions

– Enable actions you want managers to be able to perform when
allocating compensation.
• Instructions
– Add text or hyperlinks to appear at the top of the worksheet
page.
Approval Subtabs
• Choices are:
- Approvals
- Compensation Overview
- Allocation Statistics
- Salary Analysis
- Alerts
- Target Analysis
- Performance
- Promotions
• Configure report filters for the analytics.
Actions
• Not available for the approvals or communication type tabs
• Restriction: Actions are specific
p to the tab yyou are configuring.
g g

Managing Dynamic Columns
Dynamic calculations are conditional statements, or expressions,

that you use to:
• Calculate and display values that vary by worker
• Change the value of one column based on the value of
another
th

On the Configure Worksheet Page Layout page, Detail Table tab, click the Manage Column
Condition and Results icon to open the Manage Dynamic Calculations page.
Evaluation Order
Identify the order in which multiple dynamic columns are calculated when the results of one
column is used in the condition or results of another.
Triggering Events
Events that can trigger evaluation or recalculation of dynamic columns are:
• Running the Start Compensation Cycle process
• Running
R i ththe RRefresh
f hD Data
t process
• When a manager enters or changes data on a worksheet
Default Expression
The default expression is the one to use when no other conditions are met.
Create Dynamic Calculation
• Basic tab: Walks yyou through
g the steps
p to create a condition in the correct format and
using the correct syntax
• Advanced tab: Allows you to create the condition free form

Test Condition and Column Results
• Test the condition.
• Enter the values you want to test.
• Review the results
results.
• Edit the condition, if desired.

Demonstration
Configuring Worksheet Display and Layout


Alerts
Create custom alerts that appear in the worksheet to notify

managers about conditions.


Configuring Alerts
• Predefined Alerts
– Select a predefined alert and edit the name.
– Select the type of icon to display for the alert.
• Custom Alerts
– Define the triggering criteria using available worksheet
columns.
• Create Custom Alert Condition

– Use the Basic or Advanced Edit Condition Windows.
• Review Results
– Enter values that could be used on the worksheet to test the
condition.
– Review the results.
– Edit the condition, if desired.
Predefined Alerts
• Choices are:
- Information
- Alert
- Warning
Custom Alerts
• Icon choices
- Information
- Alert
- Warning
- Error
- Several geometric symbols
• An error alert stops a manager from saving or submitting the worksheet until the error is
resolved.

Create Custom Alert Condition
• Edit Condition Window Basic: Walks you through the steps to create a condition in the
correct format and using the correct syntax
• Advanced: Allows you to create the condition free form
• Check that the condition syntax and the column names used are correct.

Demonstration
Configuring Alerts


Practices
• 12-4: Configuring Worksheet Display and Layout

• 12-5: Configuring Alerts


Quiz
Q
When multiple components share the same budget pool, one
component must be the primary component for budgeting.
a. True
b. False

Answer: a

Quiz
Q
You must use Oracle Fusion Performance Management to rate
workers during a compensation cycle.
a. True
b. False

Answer: b
False. You can display ratings from the performance management application, rate workers
during a compensation cycle
cycle, or use both methods
methods.

Quiz
Q
You can specify the timing of when higher level managers can
take what actions?
a. Approve their lower level managers’ worksheets
b. Submit their worksheets for approval
c. Both of these actions
d. Neither of these actions

Answer: c

Quiz
Q
How many compensation statement groups can you associate
with a plan?
a. One
b. Two
c. Three
d. As many as you want

Answer: a

Quiz
Q
Which of the following are worksheet tab types?
a. Compensation
b. Approvals
c. Communicate
d. Promotions
e. Performance

f. Detail Table Only
g. All of these items
h None
h. N off these
th items
it
Answer: g

Quiz
Q
You use the Configure Column Properties dialog box to configure
a worksheet column’s properties.
a. True
b. False

Answer: a

Quiz
Q
Dynamic calculations are conditional statements, or expressions,
that you use to:
a. Calculate and display values that vary by worker
b. Change the value of one column based on the value of
another
th
c. Both of these actions
d. Neither of these actions

Answer: c

Quiz
Q
Which alert type stops managers from saving or submitting their
worksheets?
a. Information
b. Alert
c. Warning
d. Error

Answer: d

Summary

• Enable components and create two components
• Enable and configure performance ratings
• Enable worker statements and select a statement group
• Configure worksheet tabs and how they appear on the
worksheet
• Enable predefined alerts and configure a custom alert


13
Configure Workforce
C
Compensation
ti MModels
d l
and Reports

Lesson Objectives

• Enable and configure modeling
• Select and deselect compensation reports
• Configure report filters
• Enable dimensions




Modeling: Overview
Modeling enables managers to automatically allocate

compensation to workers who meet certain criteria.
• Enable modeling for the current plan on the configure
modeling page.
• Disable
Di bl modeling
d li ffor allll plans
l on th
the global
l b l settings
tti page.

You can enable modeling for:

• Managers and administrators
• Only administrators
Or, you can disable it altogether.

Configuring Modeling
• Manager Model Usage

• Model Sharing
• Applying Model Results to the Worksheet

If modeling is enabled for managers you can decide if they can:

• Create their own models
• Only use models created by compensation professionals
You can decide how the model creator can share the model:
• Restrict the model to only the person who created the model.
• Allow the model to be shared with all managers.
• Allow the manager to share the model only with direct reporting managers.
The model can be used to change:
• Budget amounts
• Target amounts
• Actual compensation amounts
• Or, a mix of the choices

Model Allocation Method
Allocation Method
• It determines how a model
calculates budget or
compensation amounts and
target amounts or ranges
for a given worker
population.

• You enable allocation
methods for each
component.
component
In the Workforce Compensation work area, under Model Compensation, select a model to
open the Edit Compensation Models page.
Model amounts by:
• Bringing workers up to a specific compa-ratio or quartile
• Supplying a numeric or text value to a custom column
• Supplying a target range or percentage
• Allocating a specified amount or percentage
• Increasing by a specified amount or percentage

Demonstration
Configuring Modeling


Reports: Overview
Reports are a set of analytics for managers to use when

allocating compensation.
• All managers at all levels of the hierarchy have access to the
same reports.
• Some
S reports
t are already
l d enabled.
bl d YYou can select
l t and
d
deselect the reports.


Configuring Reports
• Delivered Reports
– Cycle Overview
– Pay for Performance
– Salary Analysis
– Target Analysis
• OTBI Reports

Delivered Reports
• Cycle Overview
- Workers Compensated
- Worker Count by Allocation
- Promotion Overview
- Worker Status
• Pay for Performance
- Compensation Versus Rating Distribution
- Average Allocation
- Average Compa-Ratio
- Compensation by Rating

• Salary Analysis
- Salary Averages
- Salary Totals
- Compa-Ratio
Compa Ratio Averages
- Allocation by Salary Range
- Salary Range Distribution
• Target Analysis
- Workers on Target
- Actual Versus Target
- Deviation from Target
• Distribution Analysis
- Allocations by Manager

OTBI Reports
Add up to 25 additional reports.
Note: All reports saved in the Compensation Transactional Analysis Samples of the shared
Human Capital Management folder are available to add.

Demonstration
Configuring Reports


Report Dimensions: Overview
Report dimensions are attributes used to group data in reports or

as criteria when building models.


Use of Dimensions in Reports
Reports use dimensions to group data.

In the Workforce Compensation work area, Reports task pane, select the Allocation Statistics
report.

Use of Dimensions in Models
Models use dimensions as criteria to build models.

In the Workforce Compensation work area, under Model Compensation, select a model to
open the Edit Compensation Models page.
Range Increments
To aggregate data across workers, define increments to display in analytics for the following
ranges:
• Compa-ratio
• Salary range position
• Years employed
• Performance Management calculated overall rating
• Performance Management calculated goal rating
• Performance Management calculated competency rating

Demonstration
Configuring Report Dimensions


Report Filters: Overview
Enables managers to filter the approvals type tab summary

analytics by specified criteria


Demonstration
Configuring Report Filters


Practices
• 13-1: Configuring Modeling

• 13-2: Configuring Reports
• 13-3: Configuring Report Dimensions


Quiz
Q
Only administrators can create models.
a. True
b. False

Answer: b
False. You can enable modeling for managers and administrators. If you enable modeling for
managers you can allow them to create their own models
managers, models.

Quiz
Q
What best describes an allocation method?
a. The method your organization uses to allocate compensation
b. A criteria that determines how a model calculates budget,
compensation, or target amounts or ranges for a given worker
population
l ti
c. A set of rules used to allocate budgets
d. All of these descriptions

e. None of these descriptions
Answer: b

Quiz
Q
Who has access to the reports you enable?
a. Only administrators
b. All managers at all levels of the hierarchies
c. Only managers with subordinate managers
d. Only managers without subordinate managers

Answer: b

Quiz
Q
How are dimensions used?
a. To group data in reports
b. As criteria when building models
c. Both usages
d. Neither usages

Answer: c

Summary

• Enable and configure modeling
• Select and deselect compensation reports
• Configure report filters
• Enable dimensions


14
Validate
V lid t WWorkforce
kf
Compensation Plans

Lesson Objectives

• Validate a plan
• Review validation results
• Correct errors
• Revalidate the plan
• Start the compensation cycle

• Monitor the process



Validating Plan Setup
Validate plan setup before you start the compensation cycle:

• Check dependencies between tasks.
• Ensure no invalid conditions exist.
• Ensure all required data is present.
• Identify all configuration errors at one time.

Note: Configuration for formulas, payroll elements, eligibility profiles, and other objects linked
to the plan are not validated.

Validation Results
Review a list of messages and:

• Correct errors, which prevent the Start Compensation Cycle
process from completing successfully
• Correct warnings, which do not stop the process from running
• Rerun validation until there are no errors

Errors are identified by a red circle.

Warnings are indentified by a yellow triangle.

Starting the Compensation Cycle Process
Process the data required for the compensation plan including:

• Evaluating worker eligibility
• Calculating rates
• Building the hierarchy
and worksheets


Demonstration
Validating Workforce Compensation Plans


Practice
14-1: Validating Workforce Compensation Plans


Summary

• Validate a plan
• Review validation results
• Correct errors
• Revalidate the plan
• Start the compensation cycle

• Monitor the process

15
Manage Compensation
M C ti M Models
d l
and Budgets

Lesson Objectives

• Manage, create, and preview compensation models
• Apply model results on the budget sheet
• Manage budget pools
• Allocate budgets
• Edit budget method

• Reassign workers or change eligibility
• Publish or withdraw budgets

Workforce Compensation Functional Tasks
Manage Compensation Models and Budgets


Managing Compensation Models and Budgets
To manage compensation models and budgets, start from the

following work areas:
• Line Manager
– Home page
– Compensation work area

Line Manager
On the Navigator menu under Manager Resources, click Workforce Compensation to open
the Workforce Compensation work area.
Compensation Administrator
On the Navigator menu, click Compensation to open the Compensation work area. Under
Workforce Compensation, click Act as Proxy Manager to open the Workforce Compensation
work area.
Note: After you select Act As Proxy Manager you need to switch to the manager for whom
you want to act.

Managing Compensation Models: Overview
• Models enable line managers and compensation managers to

try out different budget and compensation scenarios.
– Create or edit your own models.
– Use public models created by others.
• M
Model
d l properties
ti d determine
t i hhow th
the model
d l iis b
built
ilt and
d who
h
has access.
• Models are specific to a compensation plan and component.

Note: Choice availability depends on selections made during setup.

Creating Models
• Allocation Method
Calculate budget or compensation amounts and target
amounts or ranges for a given worker population.
• Model Access
Limit model access or share with others
others.
• Model Criteria
Select up to four criteria for your model.


Creating Models
After you build the model, you can review the model details.

Select Workers
The workers eligible for the associated plan are included in the model. You can include or
exclude workers from the model. For example, you can exclude workers who will transfer
soon to another organization.
Note: Selections are retained when you preview the models, but not when you save or leave
the model.
Preview Model
Preview the model and review the results. You can return to the model, make changes, and
preview again.
Apply Model Results
When you are satisfied with the results, you can apply the model:
• As budget amounts
• As compensation amounts on the worksheet
• To target amounts
• To target ranges

Important: Applying a model overwrites any existing amounts that were allocated or defined.
You can view the budget or worksheet associated with the model to see how the model
changes allocations.

Demonstration
Modeling Budgets


Managing Budgets: Overview
• Line Managers
– Award compensation for their teams based on the budgets that
they are allocated
– Can switch to lower-level managers to view their budgets or act
on their behalf
• Compensation Managers
– Initiate the budget with the highest-level manager in the

organization, if budgets are not automatically published.
– Adjust managers’ budgets.
Managers can distribute budget amounts:

• To lower-level managers
• Directly to workers
• Manually on the budget sheet
• Using a model

Allocating Budgets
• Budget Method
– Managers set the budget method the first time they access a
budget.
• Take Worker Action in the Action Menu
• Take
T k Budget
B d t Action
A ti ini the
th Tool
T lB Bar

Budget Method Options:

• Do not pass down budgets. Hold entire amount.
• Pass down budgets to direct reporting managers
managers.
• Pass down budgets to all lower managers.
Take Worker Action Options:
• Change worker eligibility for this budget pool.
• Reassign worker to another manager.
Note: Reassignment applies to this compensation cycle only.
Take Budget Action Options:
• Publish all or selected budgets.
• Withdraw all or selected budgets.

Demonstration
Managing Budgets


Practices
• 15-1: Modeling Budgets

• 15-2: Managing Budgets


Quiz
Q
When you exclude workers from a model these exclusions are
retained when you save the model.
a. True
b. False

Answer: b

Quiz
Q
By which method can you not apply model results?
a. Apply as budget amounts.
b. Apply as compensation amounts on the worksheet.
c. Apply as percentage amounts on the worksheet.
d. Apply to target amounts.
e. Apply to target ranges.

Answer: c

Quiz
Q
Which worker actions can you take on the budget pages?
a. Change worker eligibility.
b. Reassign worker to another manager.
c. You can take both actions.
d. You can take neither action.

Answer: c

Quiz
Q
You can distribute budget amounts to managers or directly to
workers.
a. True
b. False

Answer: a

Summary

• Manage, create, and preview compensation models
• Apply model results on the budget sheet
• Manage budget pools
• Allocate budgets
• Edit budget method

• Reassign workers or change eligibility
• Publish or withdraw budgets

16
Manage Workforce
M W kf
Compensation

Lesson Objectives

• Review compensation plans
• Rate worker performance
• Promote workers
• View reports and analytics

• Approve and submit worksheets
• Generate compensation statements



Managing Workforce Compensation
To manage workforce compensation, start from the following work

areas.
• Line Manager
– Home page
– Workforce Compensation work area

Line Manager
On the Navigator menu under Manager Resources, click Workforce Compensation to open
the Workforce Compensation work area.
Compensation Administrator
On the Navigator menu, click Compensation to open the Compensation work area. Under
Workforce Compensation, click Act as Proxy Manager to open the Workforce Compensation
work area.
Note: After you select Act As Proxy Manager you need to switch to the manager for whom
you want to act.

Compensation Plans: Overview
Allocate Compensation
• Managers use the workforce compensation worksheet to
allocate compensation.
• The worksheet can consist of up to ten tabs of six different tab
t
types. The
Th tab
t b types
t are:
– Compensation
– Approvals

– Promotions
– Performance
– Communicate
– Detail Table Only
Note: The tabs and columns that appear on the worksheet and the actions available depend
on how you configure the plan.

Worksheet Configurations: Examples
1. Contains five tabs, each for a specific purpose:

– Allocate compensation.
– Review worker performance.
– Promote workers.
– Approve lower level managers’’ worksheets.
– Generate compensation statements.
2. Contains two tabs, one for allocating compensation and one

for approving lower managers’ worksheets
3. Contains only one tab where all the actions are performed
These examples illustrate the variety of worksheet configurations that you can use for
different scenarios.

Line managers can see:

• Primary plans, for which they have at least one worker who is
eligible
• Secondary plans, if they have a worker assigned
• Other plans for review, if they have a worker delegated
• Status of their lower-level managers’ worksheets
• History of actions that occurred this cycle

• Approval chain for the plan this cycle
• Actions they can take directly for the worksheet
Plan hierarchies:
• Primary managed plans are plans for which line managers are responsible for managing
and
a daallocating
ocat g cocompensation
pe sat o to their
t e teams.
tea s They ey submit
sub t pprimary
a y managed
a aged pplans
a s for
o
approval.
• Secondary managed plans are plans for which line mangers are not the primary
worksheet manager but have at least one worker assigned to them based on the
secondary hierarchy structure. They can suggest and save allocations for the worker if
they are given the ability to update the worksheet. They don't submit allocations for
approval for workers.
• Other
Oth plansl for
f review
i are plans
l for
f which
hi h line
li managers have
h att least
l t one worker
k
delegated to them. They can suggest allocations for the worker.
Note: If managers don't have a secondary managed plan or other plan to review, those
regions don't appear on the their Compensation Plans page.

Workforce Compensation Worksheet
View summary information and details for each worker in the

plan.
• Take Action
• Download Worksheets
• Rate Worker Performance
• Promote Workers
• Submit Worksheet for Approval

Note: The tabs and columns that appear on the worksheet and the actions available depend
on how you configure the plan.
• Summaryy of plan
p component
p and aggregate
gg g worker details
• Worksheet for selected plan component displaying associated worker details
Take Action
Managers can take actions including:
• Apply targets
• Manage default worksheet display
• Rank workers
• Create custom filters
• Change worker eligibility for the plan, component, or both
• View audit trail
• Delegate workers to another reviewer
• Compare salary history
• Model
M d l compensation
ti
• View currency conversion rates
• Reassign workers to another manager (applies to this compensation cycle only)

Download Worksheets
Download information to integrated Microsoft Excel workbooks:
• Generate and populate the workbooks.
• Edit th
the workbook
kb k d data.
t
Enter data in amount columns only.
• Upload edits.
Worksheet does not reevaluate dynamic calculations or fast formulas.
• Resolve errors.
Rate Worker Performance
Enable managers to rate worker performance during the compensation cycle by:
• Enabling performance ratings and selecting the performance ratings to use
• Enabling a performance type tab or a compensation type tab

• Configuring performance-related columns for the tab
Promote Workers
ab e managers
Enable a age s to p
promote
o ote workers
o e s during
du g the
t e compensation
co pe sat o cyc
cycle
e by
by:
• Enabling a promotions type tab or a compensation type tab
• Configuring promotion-related columns for the tab
Submit Worksheet for Approval
• Automatically approves subordinates’ worksheets and prevents further changes
• If approvals are enabled, notifies your approving manager that you have submitted your
worksheet.
worksheet
• Can submit from any tab type other than Communicate tab type
Note: You can filter the worksheet to see subsets of workers.

Viewing Reports and Analytics
• Managers can view analytical reports and filter by relevant

criteria as they decide how to allocate compensation.
• Except for the Manager Status and Allocations by Manager
reports, each report contains:
– Overview
O i with
ith summary ttable
bl and
d graphic
hi
– Details that let you compare groups of workers
• The Manager Status and Allocations by Manager reports

provide information about lower-level managers.
Note: The reports available depend on how you configure the plan. You can vary the number
and type of reports by plan.
Reports that may be available are:
• Cycle Overview
- Workers Compensated
- Worker Count by Allocation
- Promotion Overview
- Manager
M St
Status
t
• Pay for Performance
- Consumption Versus Rating Distribution
- Average Allocation
- Average Compa-Ratio
- Compensation by Rating

• Salary Analysis
- Salary Averages
- Salary Totals
- Compa-Ratio
Compa Ratio Averages
- Allocation by Salary Range
- Salary Range Distribution
• Target Analysis
- Workers on Target
- Actual Versus Target
- Deviation from Target
- Workers Without Managers
• Distribution Analysis

- Allocations by Manager

Approving Worksheets
• Included only in the worksheets for managers with at least one

lower level manager.
• Up to seven subtabs may display summarized information for
each lower manager:
– Compensation
C ti O Overview
i
– Allocation Statistics
– Salary Analysis

– Alerts
– Target Analysis
– Promotion
– Performance
Note: The number of subtabs that display depend on how you set up the plan. Several
subtabs have second-level tabs
Managers can filter report analytics by specific criteria.
Approval Actions
• Approve worksheets of all or selected managers and notify them of first-level approval.
• Return worksheets for correction.
• Request information.
• Change access for all or selected managers.
Note: Approval closes worksheets to updates by direct and subordinate managers.
Submit Worksheet
Submit your worksheet to your manager for approval.

Generating Compensation Statements
• Use this tab to generate compensation statements for workers

to notify them of their new or adjusted compensation,
performance rating, or promotion.
• Depending on how you configure compensation change
statements when you set up the plan
plan, you can generate
statements:
– In any approval and processing status

– Only after changes are transferred to HR
– Only after final approval or changes are transferred to HR

Demonstration


Practice
16-1: Managing Workforce Compensation


Quiz
Q
Workforce compensation worksheet can contain up to ten tabs of
six different tab types.
a. True
b. False

Answer: a

Quiz
Q
You can submit your worksheet from any tab.
a. True
b. False

Answer: b
False. You cannot submit your worksheet from a Communicate type tab.

Quiz
Q
Which reports provide information about lower level managers?
a. Allocation Statistics
b. Manager Status
c. Deviation from Target
d. Allocation by Manager

Answer: b, d

Quiz
Q
What action would you take on an Approval type tab?
a. Change worker eligibility.
b. Reassign worker to another manager.
c. View compensation history.
d. Change access for all or selected managers.

Answer: d

Quiz
Q
All worksheets must be approved and processed in order to
generate compensation statements.
a. True
b. False

Answer: b
False. It depends on how you configure your compensation change statements during setup.

Summary

• Review compensation plans
• Rate worker performance
• Promote workers
• View reports and analytics

• Approve and submit worksheets
• Generate compensation statements

17
Administer
Ad i i t Workforce
W kf
Compensation

Lesson Objectives

• Manage global models, active plans, and worker information
• Review administrative reports
• Run batch processes




Compensation Work Area (Compensation Manager and
p
Compensation Administrator))
To administer workforce compensation, start from the
Compensation work area.

On the Navigator menu, click Compensation to open the Compensation work area.
• Compensation Manager: Administer workers and view administration reports.
• Compensation Administrator: Manage active plans plans, manage global models
models, and run
batch processes.

Global Models: Overview
Compensation administrators can create models that managers

and administrators can use to automatically allocate
compensation to workers who meet certain criteria.
Create global models and associate them by:
• Plan
Pl
• Component

In the Compensation work area, click Manage Global Models to open the Manage Global
Models page.
Note: The availability period is for the associated plan.

Creating or Editing Global Models
• Build global models similar to modeling on the budget sheet.

• Select budget funding level for managers.
• Model access level:
– Global public is available to everyone. All managers can view
and apply to their own budgets or allocations.
– Global private is restricted to compensation professionals.


Demonstration
Managing Global Models


Active Plans: Overview
Compensation administrators can manage active plans for an

enterprise.


Managing Active Plans
• Properties
– Change plan properties for a specific plan and plan cycle.
• Currency Conversion Rates
– Override currency conversation rates.

Properties – Change plan properties for a specific plan and plan cycle.
• You can change:
- Cycle status
- Approval and submit modes
- Plan, component, and display order
• Changes to the plan:
- Do not change the original plan definition
- Are effective only for the specified plan and plan cycle
Currency C
C Conversion
i R Rates
t – Override
O id currency conversation
ti rates:
t
• Manually
• Automatically by refreshing rates from the GL daily rates, if you use daily rates
Note
• If you manually override rates after a compensation cycle has started or budgeting has
begun, immediately run the Refresh Data process to refresh summary data to use the
current rates
rates.
• Converted rates are for display only. Award amounts are posted in each worker’s local
currency.

Demonstration
Managing Active Plans


Administering Workers: Overview
Compensation managers can view and edit worker information

copied from HR or entered by the manager on the worksheet:

• In the Compensation work area, click Administer Workers to open the Administer
Workers: Select Plan page.
• ep ocess a
Reprocess an individual
d dua who
o was
as p
previously
e ous y found
ou d eeligible
gbeo or ineligible
e gbe a and
d re-evaluate
e e a uate
eligibility for a plan.
• Add to a plan a worker who was not originally found eligible.

Eligibility Status
A person’s eligibility status varies by plan.

• Eligible
– The worker can receive compensation from a plan.
• Ineligible
– The worker cannot receive compensation from a plan.
• Limited
– The worker is not eligible for a plan, but has at least one

subordinate worker who is eligible.
– The person can manage budgets and allocate compensation,
but not receive compensation within the plan.

Administering Workers
Compensation managers can override employment details used

for this plan cycle for the selected worker on these ten tabs.

On the Administer Workers: Select Plan page, click a plan to open the Administer Workers
page.
Changes made here do not affect the worker
worker’s
s HR record.

Worker Information
View and edit information from the worker’s HR data.

• Personal information, such as disability status
• Employment details, such as job title and assignment status
• Termination and leave dates and reasons
• Latest leave of absence details


Budget Information
View and edit budget information by budget pool, if the worker is

a manager:
• Budget pool details, including access level
• Overall budget amounts and percentages
• Budget amounts and percentages for direct reports
• Restrictions when allocating compensation
• Restrictions when budgeting


Compensation
View and edit compensation information by plan component:

• Salary amounts and statistics, such as FTE
• Award amounts and percentages, such as Merit Eligible
Salary
• Target amounts and percentages, such as Target
Compensation Percentage
• Miscellaneous rates, if they were configured for the plan


Promotion
View and edit job, grade, and salary information:

• Current employment information, including Grade
• Proposed employment information, such as New Job Title


Performance
Depending on how the plan is configured, view and edit

performance information:
• Compensation performance rating
• Performance Management rating


Status and Hierarchy
View and edit information about the worker’s status and

hierarchy:
• Primary worksheet manager, secondary manager, and other
reviewer
• Reassign
R i worker
k tto new manager ffor this
thi cycle
l only
l
• Plan access for each hierarchy, if the worker is a manager.
• Manager status, approval status, and worksheet due date, if

the worker is a manager
• Processing g status,, and exclude from processing
p g when yyou
close the compensation cycle for this plan
• Action history

Other Information
On the remaining tabs you can view and edit:

• Worker eligibility for the plan and component
• Data for customized fields, if configured for the plan
• Notes and attachments
• Audit trail for worker’s changes


Demonstration
Administering Workers


Administration Reports
Reports are a set of analytics that compensation managers use to

administer compensation plans.
• Predefined
• All are delivered
• Not configurable

Compensation Analysis
• Compensation Allocations
• Allocations Deviating from Target
• Allocations Compared to Target Ranges
• Discrimination Detection
Budget Analysis
• Budget Consumption
Performance and Promotions
• Promotion Summary
• Performance Rating Summary
Status and Monitoring
• Manager Status
• Alert Summary
• Manager Feedback
• Workers Without Managers

Data Processed
• Salary Adjustments Posted
• Element Entries Posted
• Assignment Changes Posted
• Stock Grants Posted
• Posting Error Summary
• Back Out Cycle Error Summary
Exports
• Worksheet Download report

Demonstration
Viewing Administration Reports


Running Batch Process: Overview
• Start Workforce Compensation Process

• Refresh Workforce Compensation Data Process
• Transfer Workforce Compensation Data to HR Process
• Back Out Workforce Compensation Data Process
• Purge Workforce Compensation Data Process

Compensation administrators can run batch processes.

• Start Workforce Compensation Process
- Builds manager worksheets with eligible workers
- Starts compensation cycle
• Refresh Workforce Compensation Data Process
- Synchronizes workforce compensation data with HR
- Updates plan design and currency conversion rates
- Recalculates summary data
• Transfer Workforce Compensation Data to HR Process
- Posts base pay adjustments to salary records
- Posts job, grade, and position changes to HR
- Posts element entries to payroll
• Back Out Workforce Compensation Data Process
- Reverses a completed Start Workforce Compensation Cycle process
- Removes salary, payroll, or HR changes posted
• Purge Workforce Compensation Data Process
- Removes unneeded transaction data from prior plan cycles

Monitor Processes
After you run a batch process you can monitor the progress on
the Monitor Process page.

In the Compensation work area, click Run Batch Process to open the Run Batch Process
page. Then, click Monitor Process to open the Monitor Process page.

Monitor Processes
• Monitor processing status.

• Refresh to see current status.
• View parameters as well as log and output for processing.
• Resubmit.
• Schedule a new process.


Demonstration
Running Batch Processes


Practices
• 17-1: Managing Active Plans

• 17-2: Administering Workers
• 17-3: Running Batch Process


Quiz
Q
A global model is specific to a plan and component.
a. True
b. False

Answer: a

Quiz
Q
You can override currency conversion rates by what method?
a. Manually
b. By refreshing rates automatically from GL daily rates
c. Both methods
d. Neither method

Answer: c

Quiz
Q
Why would a person have a Limited eligibility status for a plan?
a. The worker is new to the organization.
b. The manager is not eligible for the plan, but has at least one
subordinate worker who is eligible.
c. The plan is not active.
d. The plan has not been processed.

Answer: b

Quiz
Q
You enable the administrative reports you want to be available.
a. True
b. False

Answer: b

Quiz
Q
Which batch process posts element entries to payroll?
a. Start Workforce Compensation
b. Refresh Workforce Compensation Data
c. Transfer Workforce Compensation Data to HR
d. Back Out Workforce Compensation Data
e. Purge Workforce Compensation Data

Answer: c

Summary

• Manage global models, active plans, and worker information
• Review administrative reports
• Run batch processes


18
Define
D fi Total
T t lC
Compensation
ti
Statements

Lesson Objectives

• Plan and create the Define Workforce Structures
compensation items for the
total compensation Define Eligibility Profiles
statement
• Organize the
compensation items into Define and Manage Base Pay

categories and configure
category display options Define and Manage Individual Compensation
• Lay
L outt the
th display
di l off th
the
compensation categories
in the statement and Define Total Compensation Statements
configure additional
statement display options Manage Market Data

Total Compensation Statements
Configure the design, content, and delivery.

Compensation statements include two forms of pay:

• Nontraditional, such as fringe benefits, cost of benefits, and paid time off
• Traditional,
Traditional such as base pay and variable compensation
Total Compensation Statement Building Blocks
Use items and categories to construct statement definitions, which determine how to display
the associated items and categories.
You can generate new statements, purge unwanted statements, and monitor processes with
summary and detailed online reports.

Demonstration
Managing Total Compensation Statement


Questions to Help Determine What Content to Include
p y and Format It
and How to Display
• Who is the statement audience?
• What compensation do you want to include in the statement?
• Where is the compensation stored?
• How do you want to organize the statement?
• Do compensation items or categories already exist?
• What are the high-level categories and subcategories?
• Do you want to display a Welcome page and a Summary page?

• Do you want to display items when a worker has no
contributions?
• What type of graphs, if any, do you want to display?
• What type of descriptive information, if any, do you want to
display? Do you want to provide links to supplemental documents
or URLs to internal or external sites?

Compensation Items and Source Types
• Compensation Items
– Are foundational elements for total compensation statements
– Are reusable within multiple total compensation statements
– Map to a compensation source to retrieve compensation
information
• Compensation Source Types
– Benefit balance

– Element entry
– External data
– Formula
– Payroll balance
Benefit Balance
Enter information as a one-time benefit balance, such as data obtained from a legacy
compensation
co pe sat o app
application.
cat o
Additional data entry requirements: Type of compensation
Element Entry
Retrieve information such as salary and bonus earnings from element entry.
Additional data entry requirements: Legislative Data Group, Payroll Element, and Input Value
External Data
Enter information ssuch
ch as data internal to the organi
organization
ation from another ssystem,
stem or data from
a third party vendor.
Additional data entry requirements: Record Type, Column, and Type of Compensation.
Formula
Create and use a formula to retrieve compensation information that is not stored in the
defined source types.
Additional data entry requirements: Type of compensation,
compensation nonmonetary unit of measure
measure,
rounding rule, and currency.
Note: The formula unit or currency overrides the item definition.

Payroll Balance
Retrieve information such as commissions or company-paid taxes.
Additional data entry requirements: Legislative data group

Displaying and Formatting Compensation Items
• To include items on statements, you:

– Must add items to a compensation category
– Cannot add items to statement definitions directly
• Type and unit of measure:
– Inherited from compensation source
– Type examples: Monetary, nonmonetary, date, text
– Unit of measure example: Monetary currency

• Estimated values:
– To indicate that the value is not the actual amount p
paid, select
Estimated amount.
• Rounding:
– Specify for nonmonetary amounts.
Displaying Data Administered by Third Party

To display 401k balances or some other type of data that is administered by a third-party
administrator:
• Payroll administrators can load their data into element entries using the Batch Loader
task in the Payroll Administration work area.
• Benefits administrators can load their data into benefit balances using the Manage
Benefit Balances task in the Plan Configuration work area.
Type and Unit of Measure
In some cases
cases, you can override these defaults when defining the item
item.
Estimated Value: Examples
• Annualized monthly amounts
• When the item is not mapped to a payroll balance or benefit balance

Demonstration
Managing Compensation Items


Practices
• 18-1: Creating the Rail Public Transportation Allowance

Compensation Item
• 18-2: Creating the Bus Public Transportation Allowance
Compensation Item
• 18-3:
18 3 CCreating
ti ththe S
Spott B
Bonus CCompensation
ti It
Item


Compensation Items: Group Discussion
• What compensation items might your organization include in a

total compensation statement?
• What would the sources be for those items?


Compensation Categories
• Use categories to group similar or related compensation

items.
• Use the same categories in multiple statements.
• Display categories directly on the Summary page, or nest

them to make subcategories.
The category status is In Progress if no items or categories were added.

Compensation Category Types
• Benefits
• Cash Compensation
• Savings and Retirement
• Time Off
• Stock History
• Custom

• Other
The category type determines how the category is organized and what data it displays.
Category Types
Restriction: You cannot change the category type after you use the category in any
statement.
Tip: You can view several worked examples of categories in Oracle Fusion Applications Help.
1. Under Product, Human Capital Management, select Total Compensation Statement.
2. Search by categories.

Category Types: Benefits, Cash Compensation,
g and Retirement
Savings,
• You can add compensation items and nest categories.
• By default, the category table display includes columns for:
– Worker and employer contributions
– Description

Tip: You can hide columns that are not applicable.

Category Types: Time Off and Stock History
• Time Off
– Includes columns for:
— Type (examples, holiday, sick, vacation time)
— Monetary value
— Accrued balance
– Restriction: You cannot nest categories.
• Stock History

– Display up to 27 columns of data from the database table that
stores workers’ stock details.
– Select which types of stock to include.
include
– Alter which columns are hidden or optionally available (from
View menu) in the statement.
– Edit column labels.
Time Off Tip

You can edit column labels and configure each category table row name to be a link to time
off information, such as a holiday schedule for paid holidays.
Stock History: Examples
• Incentive stock options
• Non-qualified stock options
• Restricted stock

Types: Custom and Other
• Custom
– You must also:
— Specify number of columns (up to five) to include in category
— Configure column labels
— Select compensation items for table rows
– Restriction: You cannot add subcategories.
• Other

– It shares the same basic structure as the Cash Compensation
and Benefits category types.
– You can use it for any type of compensation
compensation.
Custom Example
Display commission information by including these columns:
• Sales target
• Units sold
• Percentage over target
• Percentage under target
• Commission amount

Contribution Type, Unit of Measure, and Level of Detail
• Category Contribution Type and Unit of Measure

– Values are determined by the category’s compensation items
or subcategories.
– Restriction: All items and subcategories within a nonmonetary
category must share the same unit of measure
measure.
• Level of Detail
– For certain compensation categories, you can select the level

of detail that appears on a statement for that category.

Providing Links and Displaying the Full Detail
• Provide links:
– Provide links from a high-level category page, that drill down to
specific details for each category item or subcategory row.
– To see details of each category row, such as medical, viewers
drill into the row and access a separate details page
page.
• Display the full detail:
– Display the full detail of the content on the category page.

Providing Links: Example

Example: Create a Benefits category that displays high-level information for different health
benefits, such as Medical, Dental, Vision, and Life insurance.
Displaying the Full Detail
Example: Create a Bonus category that displays the amount of different bonuses (new hire
and quarterly) as rows on the category page.
When deciding on the level of detail display option, consider these effects of showing all
details on a single page:
• You cannot add subcategories to Benefits
Benefits, Cash Compensation
Compensation, Savings and
Retirement, or Other categories.
• This is permitted if the level of detail enables drilling to see details.
• The name column does not show in the statement for category rows.
• You cannot hide all category columns.
Note: The option to show details on a single page is not recommended for recurring
information.
information

Display Options, Graphs, Descriptive and Supplemental
Text
In general, configure these display options for category detail
pages while setting up or editing categories.
• Hide table columns.
• Rename table columns.
• Configure display of zero or no values.
• Configure display of graphs.
• Add descriptive text.

• Add supplemental text.
• Change vertical display order.
order
• Hide sections for graphs or descriptions.
Iterative Process
Configuring compensation categories is an iterative process. You generate, view, purge, and
regenerate your statements multiple times, while editing your display options between each
Purge and Generate task, before you consider them ready to distribute to workers.

Hiding Table Columns
• You can hide:

– Unused or not applicable columns
— Example: Worker Contribution column in Cash Compensation
category
– Description columns
• You cannot hide all category columns if you configure the
category level of details to show all details on a single

category overview page.
Tip: Data in hidden columns are not included in summary or detail tables or graphs.

Zero or No-Value Contribution Values
• Specify what to do when a worker has zero or no values to

display during the statement period.
• These statement elements have display options for how to
handle contribution values that are zero or no value:
– Top-level
T l l categories
t i
– Stock subcategory rows
– Items in categories

Statement elements that have display options for how you want to handle contribution values
that are zero or no value:
op e e catego
• Top-level categories:
es Display
sp ay o
or hide
de tthe
e top
top-level
e e catego
category
y page in tthe
e state
statement.
e t
• Stock subcategory rows: Display or hide the row in the high-level category page and
permit or prevent drilling to the subcategory detail page.
• Items in categories: Display or hide the row in the statement.
Examples of Zero or No Values:
• Did not receive any stock options during period
• Not participating in compensation or benefit plan
Tip: When displaying a row or category page with zero or no values, you can optionally
compose a statement message that:
• Explains the lack of values
• Calls attention to missed opportunities
Example: Participation in stock purchase plan

Graphs
• Each category can display up to two graphs.

• For each graph, you must specify:
– Graph type: Pie chart or various types of bar charts
– Columns to include: Worker contributions, employer
contributions,
t ib ti or b
both
th
• Restriction: The graph cannot include columns containing:
– Text or dates

– More than one nonmonetary unit of measure
– Combination of monetary and nonmonetary values
Graphs: Example
A graph that mixes shares of stock, a company car, and fitness membership would not
provide clear information.

Descriptive and Supplemental Text
• Descriptive text
– Appears in the statement body
• Supplemental text
– Appears in a separate information window
— The window opens when users hover over the blue information
icon after the category name in the statement.


Demonstration
Managing Compensation Categories


Practice
18-4: Creating the Cash Compensation Category


Compensation Categories: Group Discussion
• What compensation categories might your organization

include in a total compensation statement?
• What would be the level of detail?
• Would you add any of those categories to other categories as
subcategories?
b t i ?


Considerations for Determining How Many Different
q
Statement Definitions Are Required
• Compensation items and categories
• Statement periods, audience,
duplication, and reuse

Iterative Process
Configuring top-level compensation categories and statement definitions is an iterative
process.
1. Generate and view statements.
2. Purge statements.
3. Edit category and statement definition display options.
4. Repeat until you consider the statements ready to distribute to workers.

Statement Definition Compensation Items and
g
Categories
The statement definition consists
of compensation items added to
compensation categories.
• Create the item and category
components as you the build
statement hierarchy, or
• Define these building block

components first, then
associate them hierarchically
Tip: Defining the components before assembling the hierarchy might be more efficient as you
can reuse items and categories across multiple statements.
Important: Edits to categories affect all statement definitions that use that category (as a
category or subcategory), whether you make the edits from the Manage Compensation
Categories page or the Manage Statement Definitions page.
Exception: Compensation category display names are local to the statement definition where
you create or edit the name and do not impact the compensation category.
Generated statements display separate pages for each of the highest level categories. You
can include multiple legal employers, multiple countries, and multiple currencies in one
statement.
Tip: You can add compensation items with sources (example, payroll elements) that belong
to different legal employers.

Statement Periods
• Configure statements to cover any period of time by specifying

start and end dates.
– You can create multiple periods at one time.
• Further specify:
– Period display name (optional)
— Example: Name the period 2015 Annual Statement rather than
the default display of start and end date.

– Date available to workers
– Exchange rate date for currency conversions
– Welcome message (optional)
Tip: The welcome message, if included, is the first page workers see in their statements. You
can hide welcome messages that you do not want to include in generated statements.

Statement Options and Denoting Estimated Amounts
• Select the audience at run time using these population filter

parameters:
– Business unit
– Benefits group
– L
Legall employer
l
– Country
– Person selection formula that you define

– Single person that you select
• Denoting estimated amounts:
– Specify whether to display or hide the indicator that visually
denotes amounts as estimated.
You can configure different statement definitions for different statement audiences by
attaching eligibility criteria. You can then apply additional population filtering at run time.
Example: Within a business unit, which you select at run time, you can create separate
statement definitions for individual contributors and executive level workers. Accomplish this
by:
• Creating eligibility profiles that differentiate between individual contributors and
executive workers
• Attaching each eligibility profile to the corresponding statement definition

Configuring the Summary Page
• The optional Summary page:

– Provides workers with high-level view of their total
compensation in graphs and tables
– Displays summed totals of top-level categories included in
monetary and nonmonetary sections
• Viewers can drill down to detailed category pages from here
or use sectional area navigation links.

The Summary page consists of three optional, configurable sections:

• Monetary section and nonmonetary section, each containing section-level:
- Tables
- Graphs
- Descriptive text
• Descriptive text, which can include rich text formatting and hyperlinks
• Supplemental information, which appears in a separate window
Example: Hyperlinks to company policies and resources

Statement Display Options
• Hide table columns. • Add supplemental text.

• Rename table columns. • Change vertical display
– Top-level categories only order.
• Reorder sections. • Hide sections for graphs or
• Configure display of zero or d
descriptions.
i ti
no values. • Exclude category from
– Top-level categories only statement summary.

• Configure display of – Top-level categories only
graphs.
g p • Include and hide Statement
• Add descriptive text. Summary page.
When creating and editing statement definitions, you can configure the top-level categories
and Summary page, including the listed display options.
Configure the bolded display options for statement definitions the same way as covered
earlier, for compensation categories.

Annual or Periodic Use of Statement Definitions
Duplicate Definitions
Duplicate the statement definition and
edit it to create a new definition.
Example: Create the definition for
executive
ti level
l l workers
k by:
b
1. Duplicating statement definition for
individual contributors

2. Adding additional compensation
categories or items
3. Associating a different eligibility profile
Reusing Statements in Other Periods or Years

Rather than creating a new statement definition for each period or year, you can:
• Add new periods to existing statement definitions
• Update the welcome message
• Add, delete, or edit included items and categories
• Modify the display of graphs and tables

Demonstration
Managing Statement Definitions


Practice
18-5: Creating the Statement Definition


Statement Definitions: Group Discussion
• How many statement definitions would your organization

require? How would they differ? Can you base some on
others by duplication?
• Does your organization pay any kind of commission? If so,
how would you map to the commission information source to
include it in your statement?


Practice
18-6: Generating Total Compensation Statements

Using the activity guide, do the specified practice.

Monitoring Processes and Viewing Statements
1. Refresh the processes until the one you want shows as

complete.
2. View the report.
3. Check for any errors.
4. View details, to confirm that the generated statement is what
you want.

General Review Checklist for Statements

• Does the Summary page appear as expected?
• Is the welcome message clear
clear, complete
complete, and appropriate for the intended audience?
• Do your high-level categories contain the descriptive text, supplemental information, and
subcategories that you expect?
• Do the statement periods convey the information that you want the recipients to view?
Editing Statements
If you want to make edits to your statement after generating statements, in the Tasks pane,
click Purge Statements and run the Purge Statements process for the statement that you plan
to edit.

Practice
18-7: Viewing Statements

Using the activity guide, do the specified practice.

Quiz
Q
Compensation items:
a. Are foundational for total compensation statements
b. Are not reusable within multiple total compensation
statements
c. Map to a compensation source to retrieve compensation
information
d. All of these items

e. None of these items
Answer: a, c

Quiz
Q
You can use compensation categories in multiple statements.
a. True
b. False

Answer: a

Quiz
Q
You can display all compensation category types directly on the
Summary page, or nest them to make subcategories.
a. True
b. False

Answer: b
Reminder: You cannot nest categories with a type of Time Off or Custom.

Quiz
Q
When deciding on the level of detail display option, which of these
effects should you consider when showing all details on a single
page?
a. You cannot add subcategories to Benefits, Cash
Compensation Savings and Retirement
Compensation, Retirement, or Other categories
categories.
b. The name column does not show in the statement for
category rows.

c. You cannot hide all category columns.
d. All of these effects
e. None of these effects
Answer: d

Quiz
Q
When determining how many different definitions you require and
planning the presentation of content in each, you should consider:
a. Compensation items
b. Compensation categories
c. Statement periods
d. Audience
e. Duplication and reuse

f. All of these aspects
Answer: f

Quiz
Q
Rather than re-creating statement definitions for each year or
period, you can add new periods to existing definitions.
a. True
b. False

Answer: a

Summary

• Manage compensation items and categories
• Manage statement definitions
• Generate and view statements


19
Manage Market Data

Lesson Objectives

• Enter supplier data Define Workforce Structures
• Associate jobs to job
structures
• Associate survey jobs Define Elements, Balances and Formulas
to internal jobs

• Import data from Define and Manage Base Pay
market surveys
• Upload and review
imported data Define and Manage Workforce Compensation
Manage Market Data

Market Data: Overview
• Import salary survey data from multiple suppliers.

• Match internal jobs to survey jobs.
• Preserve all historical salary survey data in the salary survey
repository.


Managing Compensation Types
Manage types of compensation, such as:

• Base pay
• Short term incentive, bonus
• Long term incentives
• Cash allowances
• Total compensation

• Premium pay
• Salary structures
• Annual
A l sales
l quotat
• Benefits
• Overtime
Used to compare similar types of compensation in the surveys

Managing Supplier Information
• Market Data Supplier Data

• Supplier Surveys
• Job Lists
• Survey Job Structures

• Market Data Supplier Data

- Name
- Code
- Status
- Contact details
• Supplier Surveys
- Associate multiple surveys with a single supplier.
• Job Lists
- Associate jobs to job structures
structures.
- Associate survey jobs to internal jobs.
- Enter manually or upload in batch process.
• Survey Job Structures
- Job function
- Job family
- Career stream or band
- Career level
- Other level

Market Data Workbooks
Oracle Fusion delivers seven predefined workbooks to import

market data.
• Job Structures
From the Manage Survey Job Structures page, select one of
th following
the f ll i workbooks:
kb k
– Job Function
– Job Family

– Career Stream or Band
– Career Level
– Other Level
Note: The job structures workbooks are optional.

Market Data Workbooks
• Job List
– Click Create Import Template on the Manage Survey Job List
page.
• Import Survey
– C
Createt a workbook
kb k tto import
i t your survey.
Tip: You can also use the import survey workbook to update an
existing survey, including load new job structures and list and

update existing ones.
Import Compensation Survey

Import details from market data surveys into the application.
• Use generic HCM spreadsheet loader facility:
- Enter only one supplier code, survey code, or combination of supplier and survey
codes per import template. For multiple supplier or survey codes, you must create
a separate import template.
- Do not delete or reorder any of the columns in the template.
• Upload data via batch process: Rows that are marked as changed are uploaded into the
application database.
• Review and correct errors as needed:
- Rows that are marked as Update Failed have errors.
- Fix any data issues in the workbook and upload again.
• View imported market data:
- Use the Manage Supplier Structures task to open the Manage Survey Job
Structures or Manage Survey Job List page.
page
- Use the Import Survey task to refresh the page so that the page shows the newly
imported survey. Click the survey name to open the Imported Survey Data page.

Instructor Practice
Importing Market Data


Quiz
Q
You can associate multiple surveys with a single supplier.
a. True
b. False

Answer: a

Quiz
Q
Survey job structures are:
a. Job function
b. Job family
c. Career stream or band
d. Career level
e. Other level

f. All of the above
Answer: f

Summary

• Enter supplier data
• Associate jobs to job structures
• Associate survey jobs to internal jobs
• Import data from market surveys
• Upload and review imported data


20
Course Summary

Summary
Now that you have completed this course, you should be able to:
• Identify the key concepts of compensation that determine a
successful implementation
• Review security reference implementation data for
compensationti managementt and d describe
d ib key
k security
it
concepts
• Create payroll elements for compensation

• Set up and manage base pay and individual compensation
plans

Summary
• Set up workforce compensation plans, worksheets, and

budgets
• Configure workforce compensation models and reports
• Validate workforce compensation plans
• Create models, publish budgets, and allocate compensation in
workforce compensation
• Administer workforce compensation

• Define total compensation statements
• Manage market data


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Oracle HCM Cloud:

Learn more from Oracle University at oracle.com/education/

Holly Zimmerman Disclaimer

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2 Oracle Fusion HCM and Compensation: Overview

3 Introduction to the Oracle Fusion Applications User Interface

4 Define Workforce Structures

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5 Define Eligibility Profiles

6 Define Elements, Balances, and Formulas

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7 Define and Manage Base Pay

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8 Define and Manage Individual Compensation

9 Manage Workforce Compensation Plans: Overview

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10 Configure Workforce Compensation Plan Foundation

11 Configure Workforce Compensation Budgets

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12 Configure Workforce Compensation Worksheets

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13 Configure Workforce Compensation Models and Reports

14 Validate Workforce Compensation Plans

15 Manage Compensation Models and Budgets

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16 Manage Workforce Compensation

17 Administer Workforce Compensation

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18 Define Total Compensation Statements

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19 Manage Market Data

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This lesson provides an introduction to the:

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Oracle HCM Cloud: Compensation 1 - 2

• Who are you?

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Oracle HCM Cloud: Compensation 1 - 3

This course is designed for application implementation

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Oracle HCM Cloud: Compensation 1 - 4

At the end of this course, you should be able to:

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Oracle HCM Cloud: Compensation 1 - 5

• Set up workforce compensation plans, worksheets, and

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Oracle HCM Cloud: Compensation 1 - 6

Subject matter is delivered through:

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Oracle HCM Cloud: Compensation 1 - 7

Course content is delivered over five days:

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Oracle HCM Cloud: Compensation 1 - 8

• Compensation documentation is available in the HCM Cloud

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Copyright © 2015, Oracle and/or its affiliates. All rights reserved.

Oracle HCM Cloud: Compensation 1 - 9

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