Compensation Chapter 3 - Default Behavior
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Questions and Answers

When both an eligibility rule and a job profile with a compensation grade are present, how does Workday determine the compensation grade during staffing transactions?

  • The compensation grade is determined by a combination of both the eligibility rule and the job profile.
  • The compensation grade must be manually entered and does not default from either source.
  • The compensation grade is determined by the job profile. (correct)
  • The compensation grade is determined by the eligibility rule.

    • If an eligibility rule is present without a job profile, how are compensation components populated into position compensation?

  • All components default into position compensation using the eligibility rules. (correct)
  • Components are derived from a global compensation matrix, overriding the lack of a job profile.
  • Only salary information defaults into position compensation; other components must be manually entered
  • No components are populated into position compensation.

    • What is the primary purpose of the Requisition Compensation business process in Workday?

  • To manage employee performance reviews during the requisition phase.
  • To ensure compliance with labor laws throughout the hiring process.
  • To track the budget allocated for each open job requisition.
  • To assign or change default compensation on a job requisition. (correct)

    • How does the salary amount default during staffing transactions when both eligibility rules and a job profile are present, and position compensation is used?

    <p>The salary amount defaults from the position and is editable. (A)</p> Signup and view all the answers

    In the context of Workday compensation, what is the relationship between a job profile linked to a compensation grade and a compensation rule?

    <p>The job profile overrides the compensation rule. (A)</p> Signup and view all the answers

    When both compensation eligibility rules and default compensation from a position are used, which takes precedence?

    <p>Default compensation from the position (A)</p> Signup and view all the answers

    What information is required when using a default salary plan with default position compensation?

    <p>Amount, currency, and frequency (B)</p> Signup and view all the answers

    Which of the following is a common business reason for utilizing position compensation?

    <p>To provide guidance to users entering compensation data. (D)</p> Signup and view all the answers

    In a Job Management staffing model, when does the default compensation populate?

    <p>When someone is hired into the supervisory organization. (C)</p> Signup and view all the answers

    Why is reporting unavailable for unfilled positions when using Job Management for default compensation?

    <p>Positions are not tracked until they are filled in the Job Management model. (A)</p> Signup and view all the answers

    How do you initiate the Change Default Compensation business process for a specific position?

    <p>By using the position's Related Actions and navigating to Compensation &gt; Request Default Compensation Change. (D)</p> Signup and view all the answers

    In which of the following business processes can the Change Default Compensation process NOT be used as a subprocess?

    <p>Performance review process (B)</p> Signup and view all the answers

    During staffing events, what framework manages the defaulting of compensation when using position compensation with eligibility rules?

    <p>Compensation Eligibility Rule Framework (A)</p> Signup and view all the answers

    A company wants managers to only select compensation components for which employees are eligible, but needs to allow compensation partners to override these defaults. What configuration allows this?

    <p>Assign eligibility rules to all compensation components and grant compensation partners security access to override defaults. (B)</p> Signup and view all the answers

    An employee is eligible for a compensation package that includes a specific compensation plan. However, the employee does NOT meet the eligibility rules set for that specific plan within the package. What happens during a compensation event?

    <p>The compensation plan does not default and is not available for selection. (C)</p> Signup and view all the answers

    When does a compensation component accurately default during a staffing event?

    <p>When the worker is eligible for the compensation package and also meets the eligibility rule for the specific compensation component. (D)</p> Signup and view all the answers

    What is the primary benefit of allowing compensation to default during compensation transactions?

    <p>It reduces the chance of data entry errors and provides flexibility for handling exceptions. (A)</p> Signup and view all the answers

    An employee is eligible for a specific compensation plan. However, this plan is NOT included in any compensation package. What happens when a manager processes a compensation transaction for this employee?

    <p>The plan will not default, but the manager will have the option to select it. (A)</p> Signup and view all the answers

    A worker is eligible for more than one compensation package. What is the system's behavior in this scenario?

    <p>The compensation components and plans from either package do not default. (B)</p> Signup and view all the answers

    What configurations need eligibility rules assigned to them so compensation components can accurately default?

    <p>Compensation packages, compensation grades, grade profiles, and all plans within the compensation package. (D)</p> Signup and view all the answers

    How can a partner or manager be guided when completing the transaction?

    <p>By defaulting eligible compensation components for employees. (B)</p> Signup and view all the answers

    When using the Request Requisition Compensation subprocess, what benefit is gained regarding data entry?

    <p>More detailed data entry enables more accurate compensation defaulting through eligibility rules. (C)</p> Signup and view all the answers

    Which of the following is a consequence of not populating optional fields like job family or location when creating a position?

    <p>Eligibility rules may lack sufficient data to evaluate, preventing compensation defaulting. (D)</p> Signup and view all the answers

    If both compensation eligibility rules and default compensation are set on a position, which of the following takes precedence when requisition compensation is entered?

    <p>The default compensation from the position overrides the eligibility rules. (B)</p> Signup and view all the answers

    In a scenario where compensation eligibility rules and job profiles are used, but no position compensation is defined, what steps are required when a staffing transaction occurs?

    <p>Most components default using eligibility rules, but the salary plan and amount must be entered manually. (B)</p> Signup and view all the answers

    When eligibility rules, job profiles, and also position compensation are used, but there is no requisition compensation, how does compensation information populate during a staffing transaction?

    <p>All components default from the position. (C)</p> Signup and view all the answers

    What is the primary advantage of using requisition compensation with eligibility rules regarding staffing transactions?

    <p>It provides complete defaulting of compensation components. (A)</p> Signup and view all the answers

    In the context of compensation defaulting, what is the role of eligibility rules?

    <p>To determine compensation components based on worker characteristics and job attributes. (C)</p> Signup and view all the answers

    What is the implication of using requisition compensation defaulting with compensation eligibility rules or position compensation?

    <p>It provides flexibility to tailor compensation packages to specific job requirements. (C)</p> Signup and view all the answers

    Which of the following compensation defaulting methods takes precedence over position compensation in Workday?

    <p>Approved offer compensation (C)</p> Signup and view all the answers

    In Workday, what is the primary reason for enabling autocomplete during the 'Propose Compensation Change' process?

    <p>To streamline the process when compensation has already been agreed upon. (C)</p> Signup and view all the answers

    If a job requisition lacks specified compensation details, which of the following methods does Workday use to default compensation components during the offer process?

    <p>Compensation eligibility rules (D)</p> Signup and view all the answers

    What is the implication of configuring the 'Propose Compensation Change for Global Modern Services' business process with 'Enable Autocomplete' set to 'Yes'?

    <p>Compensation components are automatically populated, assuming prior agreement. (A)</p> Signup and view all the answers

    When is it most beneficial to use offer compensation defaulting in Workday Recruiting?

    <p>When the pre-hire has already agreed to specific compensation terms. (B)</p> Signup and view all the answers

    What is the significance of including the 'Propose Compensation Offer/Employment Agreement' subprocess in the overall 'Offer' or 'Hire' business process?

    <p>It ensures compensation components default and are editable. (C)</p> Signup and view all the answers

    Why does Workday recommend assigning compensation using requisition compensation rather than position compensation?

    <p>Requisition compensation is easier to maintain over time. (C)</p> Signup and view all the answers

    In what situation would you primarily rely on compensation eligibility rules for defaulting compensation?

    <p>When you want to enter unique scenarios that are complicated. (D)</p> Signup and view all the answers

    When determining compensation during the hiring process, what is the correct order of precedence if all methods are configured?

    <p>Compensation Eligibility Rule -&gt; Position Compensation -&gt; Requisition Compensation -&gt; Offer Compensation (B)</p> Signup and view all the answers

    An employee is eligible for multiple compensation packages due to an incorrect configuration. What is the most likely consequence of this?

    <p>It violates a principle of compensation configuration to avoid ambiguity and ensure fair, consistent compensation. (A)</p> Signup and view all the answers

    A company uses both Compensation Eligibility Rules and Position Compensation. How does the system determine the default compensation components during the hiring process?

    <p>Compensation Eligibility Rules default components into the Position Compensation, and this combination is used during hire. (A)</p> Signup and view all the answers

    If Requisition Compensation exists, what happens to the offer compensation?

    <p>Requisition compensation defaults into the offer compensation. (D)</p> Signup and view all the answers

    A company wants to offer a specific bonus plan only to their sales employees, but does not want the plan to be a default option for other employees. How should the compensation be configured?

    <p>Set up the bonus plan outside of any compensation package and assign it only to sales employees. (B)</p> Signup and view all the answers

    What is the outcome if position compensation does not exist? Requisition compensation is configured.

    <p>Eligibility rules default compensation components into requisition compensation, and during hire, compensation defaults from the requisition. (B)</p> Signup and view all the answers

    When is the salary amount editable and defaulted from the requisition during the hiring process?

    <p>During a hire, all plans and salary amount are editable; Salary amount defaults from requisition (B)</p> Signup and view all the answers

    If position compensation exists, and position eligibility rules are configured, how are these applied to the requisition?

    <p>Position compensation defaults into requisition compensation. (A)</p> Signup and view all the answers

    Flashcards

    Default Compensation

    Automatic assignment of compensation settings based on established rules.

    Compensation Eligibility Rules

    Criteria determining which compensation packages or components an employee qualifies for.

    Compensation Package

    A collection of compensation components defined for a specific job or position.

    Order Precedence

    The hierarchy of which compensation defaulting methods take priority.

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    Position Compensation

    Compensation attached to a specific job position within the organization.

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    Requisition Compensation

    Compensation set during the job requisition process before hiring.

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    Offer Compensation

    Compensation discussed and confirmed during the job offer process.

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    Staffing Event Behaviors

    Different defaulting actions based on eligibility during hiring or job changes.

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    Default Compensation Override

    Default compensation from a position takes precedence over eligibility rules.

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    Default Salary Plan

    A plan requiring an amount, currency, and frequency when setting compensation.

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    Reasons to Use Position Compensation

    Includes guiding users, using budgets, and tracking actual vs. budgeted compensation.

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    Position Management vs Job Management

    In Position Management, compensation is assigned to unfilled positions; in Job Management, it's for hires.

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    Change Default Compensation Process

    A method to assign or change default compensation using the Related Actions menu.

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    Compensation Eligibility Rule Framework

    Defaults compensation during staffing or compensation events based on rules.

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    Track Compensation

    Comparing actual compensation to budgeted amounts for reporting purposes.

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    External Applicant Tracking System

    A system for sending approved compensation details to external hiring tools.

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    Job Profile and Compensation

    Linking a job profile to a compensation grade overrides the compensation rule.

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    Position Compensation Defaulting

    Position compensation defaults based on eligibility rules and job profiles during staffing events.

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    Staffing Transaction Outcomes

    During staffing transactions, various outcomes occur based on eligibility and job profile conditions.

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    Requisition Compensation Assignment

    The system assigns requisition compensation for open requisitions created with the specific business process.

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    Standalone Requisition Compensation Process

    Initiate the Requisition Compensation process via Related Actions to change default compensation.

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    Eligibility Rules

    Guidelines determining how compensation defaults for positions and requisitions.

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    Manual Entry Requirement

    When insufficient data is available, compensation must be entered manually.

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    Defaulting Methods

    Processes that automatically assign compensation based on set rules.

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    Editing Compensation

    The process of modifying default compensation values as needed.

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    Override Rules

    When position compensation defaults replace eligibility rules in requisition compensation.

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    Eligibility Rules Defaulting

    All compensation components default using the established eligibility rules.

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    Position Compensation Defaults

    Compensation defaults from the position during hiring if position compensation exists.

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    Requisition Compensation Defaults

    If position compensation is absent, eligibility rules default compensation during hire.

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    Offer Compensation Defaults

    If requisition compensation is available, it defaults to offer compensation during hiring.

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    Order of Precedence

    The hierarchy determining which compensation defaults take priority during hires.

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    Compensation Package Limits

    Employees can only be eligible for one compensation package and one grade profile.

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    Selectable Compensation Plans

    Plans that should be selectable for specific groups, but not default, are outside of a package.

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    Compensation Eligibility Rule Impact

    Using an eligibility rule affects what defaults for employees during hiring.

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    Offer Compensation Override

    Approved compensation during hiring that takes precedence over other pay structures.

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    Compensation Autocomplete

    Automatic population of agreed compensation during hiring or changes.

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    Job Requisition Compensation

    The compensation set during the job requisition before hiring occurs.

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    Default Position Compensation

    Compensation linked to a specific job role within the organization.

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    Propose Compensation Offer

    Subprocess that proposes compensation details during the offer phase.

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    Study Notes

    Chapter 3 - Default Compensation

    • Proper understanding of defaulting behavior and compensation framework is crucial for successful compensation transaction processing
    • Defaulting compensation reduces data entry errors and allows flexibility for exceptions.
    • Compensation eligibility rules can be applied to components, positions, job management, supervisory organizations, job requisitions, or the offer process.

    Objectives

    • Compare position, requisition, and offer compensation transactions
    • Identify differences in defaulting behaviors during hires and job changes
    • Summarize the importance of order precedence between different compensation defaulting methods

    Defaulting Compensation

    • Compensation components must have eligibility rules assigned to accurately default
    • Eligibility rules for compensation packages may differ from those on individual plans or grades.

    Defaulting during Staffing Events

    • If a worker is eligible for a package and a plan within that package, defaulting occurs.
    • Defaulting does not occur if a worker is eligible only for a plan not in a package, though the plan is selectable.
    • Defaulting does not happen if the worker is not eligible for a particular plan, even if that plan is in the package.
    • Defaulting does not occur if the compensation is eligible for more than one package/grade as options are selectable but do not default.
    • Compensation components are defaulted during staffing events to reduce data entry errors while ensuring flexibility for exceptions.
    • Specific criteria (e.g., package, grade, salary, allowance, stock, merit, bonus plans) often default.
    • Defaulting methods include rules and grade on job profiles.

    Associating Compensation Grades with Job Profiles

    • Compensation grade can default via eligibility rule framework or direct association with a job profile.
    • Administrators often associate grades with job profiles to ensure eligibility across all employees.
    • Compensation eligibility rules are often the preferred approach as it can define employee eligibility criteria.
    • Job profiles may use location-related criteria for eligibility/grade selection

    Defaulting from Position Compensation

    • Default compensation can be defined on a position, either with or in conjunction with compensation eligibility rules to accurately populate compensation during staffing transactions
    • Setting up position compensation is important if using compensation eligibility rules as default position compensation overrides eligibility rules
    • Default compensation is typically used when providing guidance to users (managers, partners) in compensation processes, for position/budget tracking, and/or when using budgeted and approved compensation values.
    • When using default position compensation, factors like amount, currency, and frequency need to be entered.

    Defaulting from Job Requisition Compensation

    • Requisition compensation is similar to position compensation, but offers more data for eligibility rules to use to accurately populate data during the hire process.
    • Job requisition compensation defaults into job requisitions and can be edited.
    • More data entry for job requisitions, such as job family, job profile, location, time type, worker type, and worker sub-type is required.
    • Absence of this data may result in no default compensation.

    Offer Compensation (Requirements for Workday Recruiting)

    • Offer compensation overrides eligibility rules
    • Accepted offer compensation automatically populates during the hire process.
    • Offer compensation can be managed using compensation eligibility rules or requisition compensation.
    • Offer compensation takes precedence if using either position or requisition compensation.

    Compensation and Job Requisitions

    • Jobs requisitions can be created with or without requisition compensation.
    • The system assigns requisition compensation for each requisition. Requisition compensation can also be used in conjunction with position compensation or on its own, depending on the process.
    • Use the request compensation change option to manage requisition compensation related changes/options.

    Knowledge Check

    • Question 1: Incorrect statement regarding position compensation, offer compensation, compensation eligibility rules.
    • Question 2: True or false, regarding whether the request compensation change step is required for using job requisitions.

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    Description

    This quiz focuses on the concepts of defaulting behavior and compensation frameworks essential for processing compensation transactions. It covers the importance of eligibility rules, comparisons of compensation types, and the significance of order precedence in defaulting methods during hiring and job changes.

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