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Oracle E-Business Suite R12 Human Capital Management (HCM) Essentials


Partner Boot Camp Training Courseware
Compensation Workbench

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2012 Oracle Corporation Proprietary and Confidential

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Key Content Contributors


Contributing Companies

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R12: Oracle HRMS

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Module: Compensation Workbench

Pre-requisites
To understand this module you should have hand-on knowledge of
following Core HR features
Work Structure Components
Core HR Workforce Management
Element description and Link Setup
Basic Knowledge of Fast Formula
Defining Rating Scale

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Module Objectives
Plan Enrollment Requirements
Standard Rates
Life Events
Eligibility Profiles
Total Compensation Statement
Compensation Workbench for Managers &
Administrators
Profile Options for CWB
Perform Budgeting
Manage Promotion and Rating

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Plan Definition, Types and Years


Plan Types
Determine the category of compensation offerings
Must choose the Option Type of Compensation Workbench
The Compensation Category specifies if the plan type is for salary, bonus or
stock

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Plan Definition, Types and Years


Compensation Plan
Compensation Workbench plan is a collection of group of various tasks
that are available to managers at the same time, processed at same
time, and use the same hierarchy and approval chain.
Typical compensation plans include salary increases linked to a yearly
focal review period, scheduled bonuses, and stock option grants. One
can also define plans for promotions/job changes and performance
ratings.
In case of multiple plans across different business groups then all should
be associated with one global plan. One create a single budget for the
global plan, which you can distribute across the local plans in their local
currencies.
One can group different plans of same plan type in a business group
under one global plan and allocate money to all plans using single
budget.

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Plan Definition, Types and Years


(N)Total Compensation> Program and Plans > Plans.

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Plan Definition, Types and Years


Year periods must be defined for
each compensation object
Year periods can be defined as
either Calendar or Fiscal
Within Year periods may be
used to specify time within a
year
Most commonly
quarterly bonuses

used

with

Budget/Worksheet periods may


be defined for the within year
periods

(N) Total Compensation >


General Definitions > Additional
Setup > Program/Plan Years

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Module Objectives
Plan Definition, Types and Years

Standard Rates
Life Events
Eligibility Profiles
Total Compensation Statement
Compensation Workbench for Managers &
Administrators
Profile Options for CWB
Perform Budgeting
Manage Promotion and Rating

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Plan Enrollment Requirements


Plan enrollment requirements are setup to determine the availability
period of Compensation Workbench in Self-Service for a plan.
One can use plan enrollment requirements to enter items such as
the:
Assigned life event date
Plan year or within year period for the compensation plan
Close enrollment date
Enrollment coverage and activity rate start and end dates
Budget and worksheet characteristics and availability periods
Supervisor or position hierarchy to use for budgets
Dates on which performance ratings or job changes become effective

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Plan Enrollment Requirements


(N) Total Compensation > Programs and Plans > Plan Enrollment
Requirements

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Module Objectives
Plan Definition, Types and Years
Plan Enrollment Requirements
Life Events
Eligibility Profiles
Total Compensation Statement
Compensation Workbench for Managers &
Administrators
Profile Options for CWB
Perform Budgeting
Manage Promotion and Rating

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Standard Rates
Overview
Used to display calculations to help the manager or to allow input
from the manager to complete a calculation
Activity Types determine how the standard rate is used by CWB and
where the information will be displayed
Many standard rates can be defined for a single comp plan during
implementation
Standard Rates are used to record a variety of compensation
amounts, such as
Worksheet Budget
The worksheet budget is the amount that a manager sees on his/her
worksheet to allocate to his/her direct reports.

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Standard Rates
Worksheet Amount
This rate is required and represents the amount a manager enters on the
worksheet in money or shares. Attaching an element entry to this rate will
forward this amount to the payroll system.

Distribution Budget
The distribution budget is the budget that a manager gives another manager to
further distribute down the reporting hierarchy.

Budget Reserve
A budget reserve allows managers to hold back money in a budget for later
use. Only if you use budgets should this rate be defined.

Recommended Amount
Recommended amount help manager to distribute the target amount to the
employees

Eligible Salary
Eligible Salary is the salary used for CWB calculations

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Standard Rates
(N) Total Compensation > Rates/Coverage Definitions > Standard Rates

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Module Objectives
Plan Definition, Types and Years
Plan Enrollment Requirements
Standard Rates
Eligibility Profiles
Total Compensation Statement
Compensation Workbench for Managers &
Administrators
Profile Options for CWB
Perform Budgeting
Manage Promotion and Rating

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Life Events
Life Events
Seeded
life
event
type
Compensation
You must define separate life
events for Salary, Bonus and
Stock plans
Life events are attached to the
plan enrollment requirements
When the plan is processed, the
events are assigned directly to
each person
(N) Total Compensation >
General Definitions> Additional
Setup > Life Event Reasons

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Module Objectives
Plan Definition, Types and Years
Plan Enrollment Requirements
Standard Rates
Life Events
Total Compensation Statement
Compensation Workbench for Managers &
Administrators
Profile Options for CWB
Perform Budgeting
Manage Promotion and Rating

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Eligibility Profiles
Overview
Eligibility profiles are defined to determine employee eligibility for
compensation and benefits plans
Following Tab Regions are present to define the eligibility.

Personal
Employment
Derived Factors
Related Coverage
Other

When you define more than one value for a criterion, at least one of
the values must be present in the person's record for them to be
eligible. However, when you use multiple criteria in an eligibility profile
(for example, a Work Location and an Organization), the person must
meet at least one value for each criterion.
BEN: Eligible Profile Rule profile controls the AND OR rules between
multiple eligibility defined for a plan.

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Eligibility Profiles
Compensation > General Definitions > Eligibility Profiles > Participant

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Module Objectives
Plan Definition, Types and Years
Plan Enrollment Requirements
Standard Rates
Life Events
Eligibility Profiles
Compensation Workbench for Managers &
Administrators
Profile Options for CWB
Perform Budgeting
Manage Promotion and Rating

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2012 Oracle Corporation Proprietary and Confidential

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Total Compensation Statement


Overview
Total Compensation Statements is used to communicate
compensations, rewards, and benefits to your employees and
contingent workers. They can use this statement to view their total
compensation for a specified period, often one year, through an
easy-to-use self-service interface
Compensation administrator, or an HR professional can view
employee statements before you make the statements available to
employees
Administrator can print statements for groups of employees at a
single time. The enhanced printing ability enables to efficiently print
and distribute Total Compensation Statements to employees who do
not have online access
It is 7 step setup process to generate the total compensation
statement for the eligible employee.

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Total Compensation Statement


7 steps to Define the total compensation statement.
(N) Total Compensation > Total Compensation Setup Wizard

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Total Compensation Statement


(N) Total Compensation setup Wizard > Total Compensation statement.
Welcome Letter

Total Compensation Statement

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Module Objectives
Plan Definition, Types and Years
Plan Enrollment Requirements
Standard Rates
Life Events
Eligibility Profiles
Total Compensation Statement

Profile Options for CWB


Perform Budgeting
Manage Promotion and Rating

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CWB for Managers & Administrators


Roles and Responsibilities of Workbench Administrator
Creates and Identifies Plans Plans would mean if its a Bonus Event or
a Salary Increase Event
Allocate Budgets for Managers. In short Comp Ben Admin would create
the Budget allocate it to the respective Managers and Managers would
distribute it to the Employees based on performance
Update employee/manager information
Update plan information
Refresh Plan and Person Information
Back out a Compensation Plan
Post compensation Awards to employee records
Close out a compensation workbench plan
Generate Notification to Mass

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CWB for Managers & Administrators


CWB Administrator can update employee salary proposal and
assignment records such as Base Salary, Pay Animalization Factor,
Plan eligibility status, worksheet amount, eligible salary etc.
(N) HR Professional > Compensation Workbench for Administrators >
Employee Administration

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CWB for Managers & Administrators


CWB Administrator Access Control under Manager information Tab
(N) HR Professional > Compensation Workbench for Administrators
> Employee Administration

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CWB for Managers & Administrators


Roles and Responsibilities of Manager
Allocate the budget down the hierarchy
Provide Awards, shared, Salary increase or assignment attributes
changes to the employee reporting to him
Approve the Actions of subordinate managers
(N) Manager Self service > Compensation workbench

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CWB for Managers & Administrators


Allocation of Compensation to the Employees
(N) Manager Self service > Compensation workbench

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CWB for Managers & Administrators


Compensation Summary available to the Managers
(N) Manager Self service > Compensation workbench

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Module Objectives
Plan Definition, Types and Years
Plan Enrollment Requirements
Standard Rates
Life Events
Eligibility Profiles
Total Compensation Statement
Compensation Workbench for Managers &
Administrators

Perform Budgeting
Manage Promotion and Rating

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Profile Options for CWB


Compensation Workbench provides the following sample configurable
profile options
Profile

Configurable
Levels

Values

HR: Compensation
Workbench
Licensed

Site

Yes

BEN: CWB
Summary Level

Site

All Employees

BEN: Eligible Profile


Rule

Site

OR

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Module Objectives
Plan Definition, Types and Years
Plan Enrollment Requirements
Standard Rates
Life Events
Eligibility Profiles
Total Compensation Statement
Compensation Workbench for Managers &
Administrators
Profile Options for CWB

Manage Promotion and Rating

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Perform Budgeting
Overview

Compensation Workbench provides two general styles of budgeting


Automatic Budgeting:- Use this type of budget if you predetermine
budgets prior to giving managers access. Auto-issuing budgets gives the
compensation professional control over the amount a manager can
allocate to reporting employees and creates a uniform compensation
distribution across the enterprise
Roll-Down Budgeting:- Use this type of budget if you predetermine the
initial budget only, and line managers complete the budgeting task. As a
compensation administrator, you publish the initial budget with the
highest-level manager, or with multiple lower managers. Managers roll the
budgets down the hierarchy by distributing the budget

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Perform Budgeting
CWB Administrator publish the budget the highest level manager
which in turn uses the Budget Task to pass it to the below hierarchy
(N) HR Professional > Compensation Workbench for Administrators
> Employee Administration

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Perform Budgeting
Group Head Receives the Budget Information from the CWB
Administrator. Group Head plans and allocates budgets to the
reporting managers.
(N) Manager Self service > Compensation workbench
budget

> Set

Manager uses set budget task to distribute the budget to his/her direct
reporting manager
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Perform Budgeting
Budget Allocation by CWB Manager
(N) Manager Self service > Compensation workbench
budget

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>Set

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Module Objectives
Plan Definition, Types and Years
Plan Enrollment Requirements
Standard Rates
Life Events
Eligibility Profiles
Total Compensation Statement
Compensation Workbench for Managers &
Administrators
Profile Options for CWB
Perform Budgeting

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Manage Promotion and Rating

Compensation Workbench provide the feature to process a


promotion or complete a performance rating and ranking in
conjunction with processing a pay increase, bonus, or stock award.

In case performance management system is used to manage


performance appraisal manager can view complete appraisal details
directly from CWB allocation worksheet.

Checklist item for Manager, In case CWB Plan consists of Job


Change/ Promotion and Performance Rating Item only

(N) Manager Self service > Compensation workbench

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Manage Promotion and Rating

Job Change/ Promotion Task

(N) Manager Self service > Compensation Workbench > Job


Change /Promotions

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Manage Promotion and Rating


Performance Rating Task
(N)
Manager Self service > Compensation Workbench >
Performance Rating

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Manage Promotion and Rating


Job Change/Promotion and Performance Rating Task summary
(N) Manager Self service > Compensation Workbench > Review
and Submit

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Q&
A

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Thank You

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