Terms and Definitions
Compensation Element
The smallest unit of compensation for a worker in a specific position. Workday uses compensation elements to determine the amount, currency, frequency, and other attributes of a worker’s compensation. Compensation elements are linked to compensation plans. For example, Base Pay, Car Allowance, and Commission can be mapped to any compensation plan, but not to merit plans. Payroll earning codes linked to a compensation element allow Workday Payroll and Payroll Interface to include the applicable compensation in payroll. A Compensation Element Group is a collection of compensation elements. For example, the group Standard Base Pay can be comprised of multiple compensation elements. Compensation elements do not need to be grouped, and groups are optional.
Compensation Plan
A component of pay that you use to assign monetary amounts to a worker's pay. For example, a salary, an allowance, or a bonus plan.
Compensation Plan
A component of pay that you use to assign monetary amounts to a worker's pay. For example, a salary, an allowance, or a bonus plan.
Some compensation plans, for example, a commission, are discretionary. You are not paid from these compensation plans in every paycheck. By contrast, other plans, like a salary plan, are included in every paycheck.
Compensation Step
A specific monetary amount within a grade or grade profile. Steps defined on a grade profile override any steps defined on the grade.
A grouping of compensation guidelines (grades, grade profiles, and their associated steps) and plans that you can assign to workers as a set. Packages provide a quick view the eligible plans for a particular job or group of employees.
Grade Profile
A breakdown of a compensation grade by functional task, geographical region, or other categorization your business requires. A profile allows you to assign more granular compensation ranges to workers.
A breakdown of a compensation grade by functional task, geographical region, or other categorization your business requires. A profile allows you to assign more granular compensation ranges to workers.
Compensation Rule
Guidelines for determining which workers are eligible for which components of compensation.
Guidelines for determining which workers are eligible for which components of compensation.
Compensation Step
A specific monetary amount within a grade or grade profile. Steps defined on a grade profile override any steps defined on the grade.
Reference Pay Range
A range of pay deemed appropriate for a compensation grade or grade profile. During compensation transactions, if proposed compensation for an employee extends beyond the limits of the range for the employee's grade or grade profile, Workday issues a warning yet still permits submission of the proposed compensation.
Compensation PackageA range of pay deemed appropriate for a compensation grade or grade profile. During compensation transactions, if proposed compensation for an employee extends beyond the limits of the range for the employee's grade or grade profile, Workday issues a warning yet still permits submission of the proposed compensation.
A grouping of compensation guidelines (grades, grade profiles, and their associated steps) and plans that you can assign to workers as a set. Packages provide a quick view the eligible plans for a particular job or group of employees.
Compensation Defaulting Rule
Establishes the criteria for how compensation components default to worker compensation during staffing transactions (hire, promote, demote, transfer). Compensation defaulting rules ease data entry by automatically defaulting compensation components (packages, grades, grade profiles, and plans) to worker compensation for employees who meet the rule's eligibility requirements.
Establishes the criteria for how compensation components default to worker compensation during staffing transactions (hire, promote, demote, transfer). Compensation defaulting rules ease data entry by automatically defaulting compensation components (packages, grades, grade profiles, and plans) to worker compensation for employees who meet the rule's eligibility requirements.
Compensation Basis
A user-defined grouping of compensation components; such as the sum of salary, allowance, commission, bonus, future payment, stock and retirement savings plans. Workday enables you to specify which compensation plans should be included in the compensation basis calculation. This calculation can be used to view employee compensation in Workday and in the bonus process to provide target pools and individual target amounts.
Compensation Matrix
Defines the bonus,merit and stock increase range based on employees' overall performance rating, retention rating, eligibility rule, or their salary range quartile. You can use a compensation matrix to generate a bonus,merit or stock pool, giving you the basic cost forecasting necessary to pay for performance (bottom-up budgeting), or you can use the compensation matrix as reference guidelines only but have a separate pools (top-down budgeting)
Compensation Structure
The arrangement of compensation grades, grade profiles, plans, and packages you create to best fit your company's compensation needs. Administrators, partners, and managers can use these compensation components and compensation eligibility rules to assign and update a worker's compensation plans.
Frequency
Used in compensation and payroll to help calculate worker compensation and pay.
Accrual
Defines the bonus,merit and stock increase range based on employees' overall performance rating, retention rating, eligibility rule, or their salary range quartile. You can use a compensation matrix to generate a bonus,merit or stock pool, giving you the basic cost forecasting necessary to pay for performance (bottom-up budgeting), or you can use the compensation matrix as reference guidelines only but have a separate pools (top-down budgeting)
Compensation Structure
The arrangement of compensation grades, grade profiles, plans, and packages you create to best fit your company's compensation needs. Administrators, partners, and managers can use these compensation components and compensation eligibility rules to assign and update a worker's compensation plans.
Frequency
Used in compensation and payroll to help calculate worker compensation and pay.
Accrual
Defines how much time off employees can accrue, the timing of the accrual, and other rules. Can define eligibility rules, a frequency, and limits that differ from the time off plan.
Annualization Factor
The multiplier, which you set, used to calculate an annual amount of compensation for compensation plans. Each compensation plan has a frequency of payment, and each frequency has an annualization factor.
The multiplier, which you set, used to calculate an annual amount of compensation for compensation plans. Each compensation plan has a frequency of payment, and each frequency has an annualization factor.
Base Pay Element
The compensation components that will be included in the calculation of base pay for the purposes of determining the compa-ratio and target penetration.For example, you can choose to include both base pay and bonuses in the base pay for purposes of determining the compa-ratio.
The compensation components that will be included in the calculation of base pay for the purposes of determining the compa-ratio and target penetration.For example, you can choose to include both base pay and bonuses in the base pay for purposes of determining the compa-ratio.
Merit Process
A sequence of one or more tasks related to defining, targeting, and awarding merit pay to employees. In this process, a compensation administrator creates the merit plan definition. The administrator or manager assigns the merit plan to employees through one of various means. Assignment of the plan determines eligibility for the merit compensation event. The administrator sets up the merit process, which funds the merit pool, and then launches the process on the specified event date. Workday creates merit compensation events for employees based on their organization. Managers review the target merit increases for their employees and submit merit increase proposals for review. Once approved, the employees receive their merit increases.
A sequence of one or more tasks related to defining, targeting, and awarding merit pay to employees. In this process, a compensation administrator creates the merit plan definition. The administrator or manager assigns the merit plan to employees through one of various means. Assignment of the plan determines eligibility for the merit compensation event. The administrator sets up the merit process, which funds the merit pool, and then launches the process on the specified event date. Workday creates merit compensation events for employees based on their organization. Managers review the target merit increases for their employees and submit merit increase proposals for review. Once approved, the employees receive their merit increases.
Bonus Process
A sequence of one or more tasks related to defining, targeting, and awarding a bonus to employees. In this process, a compensation administrator creates the bonus plan definition. The administrator or manager assigns the bonus plan to employees through one of various means. Assignment of the plan determines eligibility for the bonus event. The administrator sets up the bonus process, which funds the bonus pool, and then launches the process on the specified event date. Workday creates bonus events for employees based on their organization. Managers review the target bonus for their employees and submit bonus proposals for review. Once approved, the employees receive their bonus.
A sequence of one or more tasks related to defining, targeting, and awarding a bonus to employees. In this process, a compensation administrator creates the bonus plan definition. The administrator or manager assigns the bonus plan to employees through one of various means. Assignment of the plan determines eligibility for the bonus event. The administrator sets up the bonus process, which funds the bonus pool, and then launches the process on the specified event date. Workday creates bonus events for employees based on their organization. Managers review the target bonus for their employees and submit bonus proposals for review. Once approved, the employees receive their bonus.
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