Compensation Management Configuration

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Questions and Answers

An organization wants to prevent compensation administrators in the United States from seeing compensation grades in the UK. How can this be achieved in the system?

By enabling 'Route Business Processes Based on Costing Overrides'.
By configuring security settings to restrict access based on location. (correct)
By disabling 'Pay Date Help Text for One-Time and Referral Payment Processes'.
By enabling 'Employee Visibility Date' and setting a date in the future.

What is the purpose of the 'Enable Employee Visibility Date' setting related to compensation events?

To automatically send notifications to employees about their compensation changes.
To hide all pay-related information from employees indefinitely.
To allow time to inform employees of pay changes before they see them in self-service. (correct)
To allow employees to view their job titles before any pay changes.

An organization needs to award several different types of bonuses to an employee in the same business process. Which configuration option supports this requirement?

Enable Multiple One-Time Payments (correct)
Enable Defaulting Based on Changes to Guidelines
Use Calculate 100% FTE for Pay Range Comparisons
Enable Actual End Date

An organization uses worktags for costing and wants compensation-related business process steps to route to the managers associated with those worktags. Which option should they enable?

Route Business Processes Based on Costing Overrides (B) Signup and view all the answers

If an organization selects the 'Apply FTE%' option on a salary plan and uses full-time pay ranges, which configuration allows for fair comparison of part-time workers' pay?

Use Calculate 100% FTE for Pay Range Comparisons (D) Signup and view all the answers

What are the two available methods for calculating the compa-ratio, as defined in the content?

Using calculated 50% value or using configured midpoint value. (B) Signup and view all the answers

What does the 'Default Frequency' setting control regarding compensation components?

It assigns a default frequency to a compensation component if none is defined. (D) Signup and view all the answers

An organization updates its compensation guidelines. Which setting ensures that compensation plan assignments automatically adjust based on these guideline changes during compensation changes for workers?

Enable Defaulting Based on Changes to Guidelines (A) Signup and view all the answers

An organization's compensation package is characterized by which of the following?

Having a designated compensation component for each supervisory organization. (A) Signup and view all the answers

Which of the following is a primary function of a compensation grade?

Serving as a pay range reference when entering a salary amount. (B) Signup and view all the answers

As a compensation partner, what capabilities do you have regarding grade ranges?

Compensation partners can edit grade ranges. (D) Signup and view all the answers

When creating a compensation plan, what is the role of compensation eligibility rules?

They are required to determine employee eligibility for the plan. (D) Signup and view all the answers

An organization uses position compensation and requisition compensation. The position compensation includes a salary component. During the hiring process, where will the compensation default from?

Compensation defaults from the requisition. (C) Signup and view all the answers

Which of the following statements regarding compensation defaulting methods is incorrect?

Offer compensation defaulting overrides requisition compensation defaulting. (B) Signup and view all the answers

What does the Employee Visibility Date control within the context of compensation?

When an employee can view their pay-related compensation events. (A) Signup and view all the answers

What is the primary purpose of compensation eligibility rules within a compensation framework?

To determine which compensation components are available for each employee. (D) Signup and view all the answers

An organization wants to implement a compensation strategy where an employee's total compensation is managed from a top-down perspective and distributed across various pay components. Which compensation basis feature should they utilize?

Manage by Basis Total (MBT) (D) Signup and view all the answers

Which of the following scenarios exemplifies how compensation eligibility rules automate the assignment of compensation components?

Using a mass event to automatically enroll eligible employees in a new bonus plan. (B) Signup and view all the answers

An organization aims to provide a consistent bonus calculation based on estimated earnings across different departments. Which feature enables defining a unique estimation for bonus calculations?

Compensation Basis (A) Signup and view all the answers

When creating compensation eligibility rules, what key criteria are considered to allow for variation in salary ranges or plan targets?

Factors like worker location and position. (B) Signup and view all the answers

Which of the following is NOT a primary function of compensation basis?

Defining the logic for performance review ratings. (B) Signup and view all the answers

How can an organization utilize the compensation basis feature to gain insights into their compensation strategy?

By using it to produce reports for analysis. (D) Signup and view all the answers

True or False: If using job requisitions, the request compensation change step is required.

False (A) Signup and view all the answers

What is the main advantage of using `Manage by Basis Total (MBT)`?

It allows you to manage total compensation from a top-down perspective. (D) Signup and view all the answers

When calculating employer contributions based on a percentage of salary in retirement savings plans, where is salary defined within Workday?

In the compensation basis definition. (A) Signup and view all the answers

An organization needs to upload compensation data in bulk. Which delivered compensation basis can be loaded using EIB (Enterprise Interface Builder)?

Eligible Earnings Override (D) Signup and view all the answers

Which of the following statements correctly describes the relationship between compensation elements and payroll earnings?

Payroll earnings drive employee pay when a compensation element is attached to a plan. (B) Signup and view all the answers

How do grade profiles enhance the use of compensation grades in a global organization?

They allow localization for grades, accommodating geographic or currency differences. (A) Signup and view all the answers

A company is setting up a new bonus plan. How should compensation elements be configured for this plan, considering best practices?

Create a unique compensation element for each bonus plan to allow for plan-specific tracking and reporting. (D) Signup and view all the answers

What is the primary role of the compensation administrator concerning compensation elements and element groups?

To map and maintain compensation elements and element groups. (A) Signup and view all the answers

Workday requires the use of compensation grades, but not grade profiles. What is the primary purpose of compensation grades?

To define the standard compensation range for a job or job level. (A) Signup and view all the answers

An organization has multiple compensation bases. If an employee is eligible for more than one, how does Workday determine the primary compensation basis?

The highest ranked compensation basis will be their primary compensation basis. (D) Signup and view all the answers

When optimizing eligibility rules for performance, which of the following strategies is most effective in reducing the number of instances evaluated?

Listing conditions that exclude the largest number of instances first. (D) Signup and view all the answers

Which of the following is a key consideration when enabling the 'Eligibility Rule Performance Enhancement' feature for compensation plan profiles?

Ensuring that eligibility rules do not target overlapping employee populations. (D) Signup and view all the answers

What is the primary benefit of enabling the 'Eligibility Rule Performance Enhancement' feature in Workday?

It enhances processing efficiency by reviewing plan profiles randomly and defaulting the first one that meets the employee's eligibility criteria. (D) Signup and view all the answers

Which of the options is NOT a commonly used compensation eligibility rule criteria within Workday?

Cost Center (D) Signup and view all the answers

A company wants to implement a new bonus plan, but only for employees in specific job profiles within the Sales department and who have been with the company for over 5 years. How would eligibility rules be used to achieve this?

Create a single, complex rule combining job profile, department, and tenure criteria. (A) Signup and view all the answers

A company is restructuring, and certain compensation plans need to be phased out for specific employee groups while remaining active for others. How can eligibility rules facilitate this transition smoothly?

By creating eligibility rules that gradually remove plans from targeted employee populations over time. (C) Signup and view all the answers

Which statement accurately describes the role of defaulting in compensation transactions?

Defaulting reduces data entry errors and offers the flexibility to handle exceptions in compensation. (D) Signup and view all the answers

What is one of the many options available to configure defaulting behavior?

Determining proper understanding of defaulting behavior and compensation framework. (D) Signup and view all the answers

Which of the following best describes the relationship between eligibility rules and ranking when configuring a compensation basis in Workday?

Eligibility rules determine which employees are subject to a specific compensation basis, while ranking is used to prioritize bases when an employee meets multiple eligibility criteria. (B) Signup and view all the answers

An HR manager needs to generate a report identifying employees without an assigned compensation basis. Which Workday report should they use?

Employees Missing a Compensation Basis report (A) Signup and view all the answers

A company uses Workday to manage compensation. They want to create a compensation basis that includes salary, allowance, and bonus plans. Which of the following is the correct way to configure this in Workday?

Create a Configurable Compensation Basis and select the relevant salary, allowance, and bonus plans. (B) Signup and view all the answers

Which of the following actions can you perform on the 'Maintain Compensation Basis' page?

Change the name, eligibility rule, functional area, use to view compensation, and ranking, and also delete the compensation basis. (D) Signup and view all the answers

An organization needs to categorize a compensation basis for use in budgeting and forecasting. Which 'Functional Area' option would be most appropriate to select when configuring the compensation basis?

Planning (D) Signup and view all the answers

An employee is eligible for two different compensation bases with different rankings. How does Workday determine which compensation basis is the employee's primary basis?

The basis with the highest ranking is the primary basis. (C) Signup and view all the answers

A company wants to use a compensation basis specifically for calculating a percent-based bonus. Which setting should they adjust when configuring the basis?

Use to View Compensation (B) Signup and view all the answers

If the 'Eligibility Rule' field is left blank when configuring a compensation basis, what is the impact?

All employees can use this compensation basis definition. (D) Signup and view all the answers

Flashcards

Compensation Grade Visibility

Restricts visibility of UK compensation grades to U.S. administrators.

Hide Total Salary & Allowances

Hides total salary and allowances on worker profiles and menus.

Enable Actual End Date

Allows entry of the date a compensation plan ends for a worker.

Employee Visibility Date

Controls when an employee views their pay-related events; allows preemptive communication about changes.