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Fusion Compensation Training – Day 2

(Individual Compensation Plans)
An ERPWebTutor Presentation

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Day 2 – Agenda (Individual Compensation)

• Introduction to Individual Compensation
• Design considerations for Individual Compensation
• Prerequisites
• Roles for Individual Compensation Management
• Individual Compensation plan setups
• Live demo
• Quiz

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Chapter 9: Individual Compensation

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Individual Compensation - Key Features

Individual Compensation feature is used to award variable compensation to individual
workers outside of the regular compensation cycle.

Examples: spot bonus, sign on bonus, Retention Bonus, Car Allowance

• 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.

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Key Decision Points

• Who all are eligible for the plan?

• How many plans are required?
• What compensation components are being awarded on an
ad-hoc basis?
• What employment related actions will be considered to
trigger the individual compensations?

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Pre Requisite Configurations

• Eligibility Profiles (to determine who all are eligible for a specific plan/option)
• Elements (to capture the earnings or voluntary deductions for processing in payroll)
• Fast Formulas (for eligibility determination)
• Derived Factors (for eligibility determination)

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Roles

Role Work Area

Line Manager Manager Resources Dashboard
Select Navigator - Manager Resources.
Compensation Manager Compensation
Select Navigator - Compensation.
HR Specialist Person Management
Select Navigator - Person Management.

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Actions and Action Reasons

Actions are used to track changes to Human Capital Management (HCM) records.
Examples: Changes to employment, assignment, or salary records.

Using Actions with Individual Compensation

You can associate individual compensation plans with specific actions to make the
plans available in the HR flow for that action.
Examples:
o Associate a severance plan only with the termination action.
o Associate a sign-on bonus only with a new-hire action.

Additional actions available are:

o Manage Individual Compensation for manager-administered plans

o Manage Contributions for worker-administered plans

Task for Configuring Actions: Manage Actions

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Individual Compensation Plan - Overview

Individual compensation plans define compensation that managers can award to

individual workers outside of the regular compensation cycle. You can also create plans that
workers use to manage their own contributions.

Awards can be:

• One-time payments, such as spot bonuses
• Recurring payments, where worker is compensated periodically, such as car allowance

Payroll contributions can be to:

• Savings plans
• Charitable contribution type plans

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Individual Compensation – Plan Options

• Options are different components that can be available to a particular plan.

Examples:
▪ A company car plan has options consisting of different compensation
amounts for each vehicle model.
▪ A spot bonus plan has options consisting of different fixed monetary
amounts.
• A plan must have at least one option tied to it.
• A plan can have multiple options.
• Options can be linked to a budget pool.

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Individual Compensation – Plan Dates

• Specify when plan payments start (and end for recurring compensation), such as
next payroll start date

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Individual Compensation – Eligibility Profiles

• Control in which compensation plans or options a worker is entitled to participate.

• You can attach eligibility profiles to a plan, an option, or both.

Example:
• Attach profile to company car plan to include only Sales department
• Attach other profiles to vehicle model options to restrict luxury models to
only executive positions

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Individual Compensation – Plan Access

• Choose whether to restrict plan access and specify restriction details by action.
• Control business processes in which the individual compensation plan is available
e.g. Sign on Bonus should be available only during new hire

Points to Remember:
• Use for restrictions for plans
• If you do not set access restrictions to bonus plans, workers will be able to access
that from my portrait
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Individual Compensation – Plan Access..contd

Specific HR Actions
Use these actions to allow HR Specialists and Line Managers to allocate the component
during a particular HR transaction. E.g Promotion

Manage Individual Compensation

Make plan available to line managers in Manager Resources Dashboard or Person
Gallery.

All
Make the plan available for all actions in list. It is similar to not restricting access, except
that you can specify access details that apply to all actions.

Warning: Use this with caution. Rarely will you have this set up for a plan

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Individual Compensation – Plan Access..contd

Manage Contributions
Make worker contribution plan available to eligible workers from their personal
information. Use this
Warning: Do not select any additional actions for the worker contribution plan.

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Individual Compensation – Plan Access..contd

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Individual Compensation – Plan Instructions

• Enter any appropriate instructions for the manager/HR when assigning an option
from the plan.
• If using multiple options in the same plan, enter multiple instruction texts.

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Challenge Question

Client has 3 bonuses.

1. Sign on Bonus: Can be awarded by HR only during New hire. In case it gets missed
during new hire, HR can still enter this for the person. Line Manager should NOT
have access to this at all.
2. Special Bonus: can be awarded only during Promotion by the Line Manager
3. Retention Bonus: Can be awarded only by HR from Person Management

Client insists to having a single Individual plan “Bonus” with 3 different options. How
will you approach the situation?
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End of Day 2 – Part 1

Thank you

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References:
www.docs.oracle.com
Fusion Applications Help

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