Oracle Human Resources Management Systems Compensation and Benefits

Management Guide (India), Release 12.1 Part No. E13564-09 Copyright 2005,
2015, Oracle and/or its affiliates. All rights reserved. Primary Author:
Swathi
Mathur Contributing Author:
Sriram Krishnamurthy Oracle and Java are registered
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Contents
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Preface
1 General Compensation Structures
GeneralCompensationStructuresOverview...................................................................
........1-1
GeneralCompensationStructures..................................................................................
..........1-4
Elements.......................................................................................................................
............. 1-8
Elements:BuildingBlocksofPayandBenefits...................................................................
.1-8
InputValues:FlexibleDescriptionofCompensation.........................................................
1-11
RulesforAllocatingCompensation..................................................................................
.1-11
CompensationEntry:MakingItFastandReliable.............................................................1
-13
ElementClassificationsandProcessingSequence............................................................
. 1-17
SurveyoftheClassifications............................................................................................
. 1-19
PredefinedElements......................................................................................................
....1-22
CompensationPolicyChanges........................................................................................
.. 1-30
SettingUpTotalCompensationElements.........................................................................
1-32
DefininganElement.......................................................................................................
... 1-33
DefininganElement'sInputValues..................................................................................
.1-41
DefiningandLinkinganElementforStandardandAdvancedBenefits...........................143
DeletinganElement.......................................................................................................
....1-45
DefiningElementLinks...................................................................................................
.. 1-46

GeneratingElementLinks...............................................................................................
...1-49
RunningtheElementLinkDetailsReport.........................................................................
1-49
DefininganElementorDistributionSet............................................................................
1-51
CompensationEntryandReporting.................................................................................
......1-53
CompensationEntry.......................................................................................................
...1-53
iv
CompensationReporting...............................................................................................
....1-54
HRorPayrollExtracts......................................................................................................
. 1-55
MakingManualElementEntries.......................................................................................
1-59
AdjustingaPayValue......................................................................................................
. 1-62
DeletingElementEntries................................................................................................
... 1-63
ListingEmployeesbyElement.........................................................................................
..1-64
ViewingElementEntryHistory.........................................................................................
1-65
ConfiguringtheHRorPayrollExtracts.............................................................................1
-65
RunningtheHRorPayrollExtracts...................................................................................
1-68
CompensationObjects...................................................................................................
......... 1-71
PlanDesign....................................................................................................................
....1-71
ReimbursementPlans..................................................................................................1
-78
PlanDesignCopy............................................................................................................
.. 1-78
SpecialRequirementsforPlanDesign..............................................................................
.1-83
ReportingGroups...........................................................................................................
... 1-85
DefiningaBenefitsProgram............................................................................................

..1-86
AssociatingPlansandPlanTypeswithaProgram............................................................188 DefiningWaiveReasonsforPlanTypesinaProgram(AdvancedBenefits).....................190
DefiningParticipationEligibilityCriteriaforaCompensationObject...............................191
AssociatingaLifeEventReasonwithaCompensationObject(AdvancedBenefits).........193
AssociatinganOrganizationwithaBenefitsProgram......................................................
1-95
AssociatingReportingGroupswithaProgram.................................................................1
-96 AssociatingProgramorPlanYearPeriodswithaProgram..............................................
1-96
DefiningPlanTypes........................................................................................................
...1-97
SettingUpSpendingAccountPlansforForfeitures(AdvancedBenefits).........................198
DefiningaBenefitsPlan...................................................................................................
..1-99
DefiningEligibilityandActivityRateRequirementsforaPlan.......................................1102
DefiningPlanRestrictions...............................................................................................
.1-103
DefiningaMaximumWaitingPeriodRequirementforaPlan........................................1104
DefiningaPlanNotinProgram.......................................................................................1105
AssociatingOptionswithaPlan......................................................................................1
-106
MaintainingPlanRelatedDetails.....................................................................................
1-108
DefiningCombinationsofPlansandPlanTypes.............................................................1111
DefiningWaiveReasonsforaPlan(AdvancedBenefits).................................................1111
MaintainingPrimaryCareProvidersforaPlan...............................................................1112
DefiningOptions............................................................................................................
. 1-115
NavigatingtheProgramStructureHierarchy..................................................................1
-116
DefiningaProgramorPlanYearPeriod..........................................................................1117
DefiningaReimbursementPlan(AdvancedBenefits).....................................................1

-118
DefiningReimbursableGoodsandServiceTypes...........................................................1121
CopyingaProgramorPlan.............................................................................................
1-121
v
ExportingaPlanDesigntoaFile.....................................................................................1125
ImportingaPlanDesignFromaFile...............................................................................1125
PurgingPlanDesignCopyData......................................................................................1
-126
DefiningaReportingGroup............................................................................................
1-127
DefiningRegulatoryBodiesforaPlan.............................................................................1
-128
DefiningRegulationsforaPlan.......................................................................................1
-129
BenefitsEligibility..........................................................................................................
...... 1-130
EligibilityRequirementsforTotalCompensation............................................................1130
WaitingPeriods..............................................................................................................
. 1-133
ContinuingEligibility:BenefitsAssignments..................................................................
1-135
EligibilityProfileCriteria.................................................................................................
1-137 UserdefinedEligibilityCriteria.......................................................................................1140
DerivedFactors..............................................................................................................
..1-141
DefininganEligibilityProfile..........................................................................................
1-143
DefiningYourOwnEligibilityCriteria............................................................................1145
DefiningDerivedFactors:CompensationLevel..............................................................1
-147
DefiningDerivedFactors:PercentofFullTimeEmployment.........................................1148
DefiningDerivedFactors:HoursWorkedInPeriod........................................................1149

DefiningDerivedFactors:Age.........................................................................................
1-150
DefiningDerivedFactors:LengthofService...................................................................
1-151
DefiningDerivedFactors:CombinationAgeandLengthofService...............................1153
DefiningaDependentCoverageEligibilityProfile..........................................................1153
DefiningBenefitsGroups................................................................................................
.1-154
DefiningRegulations......................................................................................................
. 1-155
DefiningPostalZipRanges..............................................................................................
1-155
DefiningServiceAreas....................................................................................................
.1-156
2 Salary and Grade Related Pay and Progression
Salary,Grades,andPayAdministrationOverview.............................................................
.... 2-1
Salary,Grades,andPayAdministration............................................................................
...... 2-4
SalaryAdministrationSetup...........................................................................................
......... 2-7
SalaryEarningsElements...............................................................................................
......2-7
SalaryBasis...................................................................................................................
....... 2-7
SalaryComponents.......................................................................................................
.......2-8
SettingUpSalaryAdministration.....................................................................................
...2-9
CreatingaSalaryElement...............................................................................................
...2-10
LinkingtheSalaryElement..............................................................................................
..2-12
ValidatingSalaryEntries.................................................................................................
.. 2-12
CreatingSalaryComponents..........................................................................................
...2-13
DefiningaSalaryBasis....................................................................................................
..2-14
vi

SalaryAdministration....................................................................................................
.........2-16
StartingSalaryandSalaryProposals................................................................................
. 2-16
SalarySpreadsheets......................................................................................................
..... 2-17
UsingtheSalaryManagementFolder...............................................................................
.2-18
ReviewingCurrentSalaries.............................................................................................
.. 2-21
ViewingSalaryHistory....................................................................................................
..2-22
RunningtheSalaryReviewReport....................................................................................
2-23
CompensationSurveys..................................................................................................
..........2-24
CompensationSurveyIdentifiers....................................................................................
.. 2-24
EnteringCompensationSurveys.....................................................................................
...2-25
MappingCompensationSurveyLines..............................................................................
.2-27
GradesandPaySetup.....................................................................................................
........ 2-29
GradesandGradeStructures..........................................................................................
...2-29
RecognizingYourGradeImplementationModel..............................................................2
-30
ImplementingGradeRelatedPay.....................................................................................
.2-34
GradeRatestoRelatePaytoGrades..................................................................................
2-35
PayScalestoRelatePaytoGrades.....................................................................................
2-37
Grade/StepProgression.................................................................................................
.... 2-39
SettingUpaGradeLadder................................................................................................
2-44
DefiningaGrade.............................................................................................................
...2-48
DeletingGrades.............................................................................................................
.... 2-49
DefiningaGradeRate.....................................................................................................
...2-49

DefiningaPayScale........................................................................................................
...2-50
DefiningScaleRates.......................................................................................................
....2-51
RelatingGradestoProgressionPoints..............................................................................
.2-51
GradesandPayAdministration........................................................................................
......2-53
GradesandPayAdministration........................................................................................
2-53
IncrementProgressionPointsProcess..............................................................................
. 2-58
PlacinganEmployeeonaGradeStep...............................................................................
2-59
ViewingGradeComparatios...........................................................................................
.. 2-60 RunningtheBatchEnrollmentGrade/StepProgressionProcess.....................................2-61
RunningtheParticipationProcess:GradeStep..................................................................
2-62
RunningtheRankEmployeesforGrade/StepProgressionProcess...................................263
ApprovingandRejectingGrade/StepProgression(Manual).............................................2
-64
ProcessEmployeesProgressedManually.........................................................................
.2-65
RunningtheRecalculateParticipantValues:Grade/StepProgressionprocess.................266
RunningthePurgeGSPTransactionsinStagingTableProcess.........................................268
IncrementingGradeStepPlacements(WithoutUsingGradeLadders).............................269
RunningtheCurrentandProjectedProgressionPointValuesReport..............................271
RunningtheEmployeeIncrementResultsReport............................................................2
-73 CriteriaBasedRates................................................................................................................
2-74
vii
CriteriaBasedRatesforVariablePay................................................................................2-74
SettingUpaRateMatrix...................................................................................................
.2-76

WorkforceIntelligenceKeyConceptsforSalary,Grades,andPayAdministration............278
KeyConceptsforSalary,Grades,andPayAdministrationIntelligence............................278
WorkforceIntelligenceforSalary,Grades,andPayAdministration....................................
2-80
EmployeePrimaryAssignmentwithSalaryandGradeRateDetailWorkbook................2-80
EmployeePrimaryAssignmentwithSalaryDetailWorkbook..........................................282
EmployeeSalaryChangeDetailWorkbook.......................................................................
2-84
EmployeeSalaryChangeWorkbook................................................................................
. 2-86
EmployeewithTenureDetailWorkbook..........................................................................
2-89
3 Compensation and Awards Management
CompensationandAwardsManagementOverview..........................................................
.....3-1
CompensationAwardsManagement:Requirements........................................................
...... 3-3
CompensationWorkbenchLicense.................................................................................
......... 3-8
CompensationWorkbenchLicense.................................................................................
.....3-8
CompensationWorkbench.............................................................................................
...........3-9
CompensationWorkbenchOverview..............................................................................
....3-9
KeyDecisionAreasinCompensationWorkbench............................................................
3-11
CompensationWorkbenchComponents.........................................................................
..3-13
CompensationPlanDesign.............................................................................................
........3-19
PlanDesignforCompensationWorkbench.......................................................................
3-19
BudgetinginCompensationWorkbench..........................................................................
.3-22
PromotionandRatinginCompensationWorkbench........................................................3
-23
StandardRatesforCompensationWorkbench.................................................................
.3-24
SettingUpaBasicPlan.....................................................................................................

. 3-31
SettingUpaComponentPlan...........................................................................................
.3-36
SettingUpaCombinationPlan.........................................................................................
.3-42
SettingUpCompensationWorkbenchPlans.....................................................................
3-49
DefiningaCompensationWorkbenchPlan.......................................................................
3-54
DefiningEnrollmentRequirementsforCompensationWorkbenchPlans.........................357
ControllingAccess,Eligibility,andAwardAmounts...........................................................
.3-63
HierarchiesforAwardAllocationsandApprovals........................................................... 363
AccessLevelsinCompensationWorkbench.....................................................................
.3-64
SwitchManager.............................................................................................................
.... 3-65
ApprovalModes.............................................................................................................
...3-65
Eligibility,AwardLimitsandTargets................................................................................
3-66
DefiningResponsibilityBasedAccesstoPlans..................................................................
3-66
WorksheetandBudgetSheetConfiguration.....................................................................
.....3-68
ConfigureWorksheetandBudgetSheets.........................................................................
. 3-68
viii
PersonalizeByPlan.........................................................................................................
...3-74
ViewingAppraisalDetailsinCompensationWorkbench.................................................
3-75
ConfiguringDescriptiveFlexfieldsWithinCompensationWorkbench.............................376
ConfiguringDynamicColumnsWithinCompensationWorkbench.................................378
ConfiguringCustomColumnsWithinCompensationWorkbench...................................380
ConfiguringEmployeeStatementsForUsebyManagersWithinCompensationWorkbench
.....................................................................................................................................

...... 3-81
CapturingGrantPriceWithaStockOptionElementEntry...............................................383
ReportsandNotifications................................................................................................
....... 3-85
ReportsinCompensationWorkbench..............................................................................
.3-85
NotificationsinCompensationWorkbench......................................................................
.3-88
CompensationDetailReport...........................................................................................
...3-89
CombinedPlanViewReport.............................................................................................
3-91
EmployeeStockOptionHistoryReport.............................................................................
3-91
FlexibleSummaryReport................................................................................................
.. 3-92
AdministrationProgressReport......................................................................................
..3-92
EmployeeCompensationHistoryReport.........................................................................
.3-93
AuditHistoryReport.......................................................................................................
..3-94
ManagerFeedbackReport..............................................................................................
... 3-95
SalaryStatisticsReport...................................................................................................
....3-95
PostProcessRunReports.................................................................................................
..3-97
PlanAdministration........................................................................................................
........3-99 MaintainCompensationWorkbenchPlansMidCycle.....................................................3-99
StepstoAdministerCompensationWorkbenchPlans.................................................... 3102
OpeningaCompensationWorkbenchAwardCycle.......................................................3104
PublishingaBudget........................................................................................................
.3-105
BackingoutaCompensationWorkbenchPlan................................................................3106
AddinganIndividualintoaStartedCompensationWorkbenchCycle...........................3107
WritingAllocatedAmountsfromtheCompensationWorkbenchCycle.........................3108

RefreshingCompensationWorkbenchData....................................................................
3-110
CreatingMassNotificationsforCompensationWorkbench............................................3112
ClosingaCompensationWorkbenchAwardCycle.........................................................3113
IndividualCompensationDistribution.............................................................................
...3-116 SelfServiceIndividualCompensationDistribution........................................................ 3116
IndividualCompensationDistributions(SSHRComponents)........................................ 3117 SettingUpIndividualCompensationDistributionsforEmployeesandiRecruitment
Applicants.....................................................................................................................
...3-118