Employee Compensation Step Progression Quiz
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Questions and Answers

What does Workday recommend scheduling when running the step and grade progression process?

  • Time off request reports
  • Performance review reports
  • Related step and grade progression reports (correct)
  • Benefits enrollment reports

    • Which task is used to view employee information regarding step and grade progression?

  • Maintain Compensation Steps (correct)
  • Review Employee Profile
  • Manage Employee Documents
  • Update Employee Records

    • When scheduling the Employee Compensation Step Progression report, what option allows you to exclude specific individuals?

  • Include Only
  • Exclude Employees (correct)
  • Targeted Selection
  • Individual Override

    • What is the primary purpose of the 'Employee Compensation Step Progression' report?

    <p>To list employees with compensation step changes within a specified period. (C)</p> Signup and view all the answers

    How can variations in compensation steps across a population of employees be implemented?

    <p>By building grade profiles and steps within each profile. (A)</p> Signup and view all the answers

    Which event triggers the inclusion of an employee in the Employee Compensation Step Progression report?

    <p>A compensation event resulting in a step change (A)</p> Signup and view all the answers

    Besides individual employees, what other criteria can be used for selecting employees when scheduling the 'Employee Compensation Step Progression ' report?

    <p>By compensation eligibility rule (A)</p> Signup and view all the answers

    What is the primary function of compensation grade profiles?

    <p>To allow assignment of detailed compensation ranges and different currencies to employees based on location. (A)</p> Signup and view all the answers

    Which of the following factors can be included in a progression rule applied to a compensation step?

    <p>Age, length of service, job profile, or collective agreements. (C)</p> Signup and view all the answers

    What type of employee movement is captured by the 'Employee Compensation Step Progression' report?

    <p>Advancement to the next step through the automatic step progression process (B)</p> Signup and view all the answers

    What process is used to automatically increase a worker's compensation based on their time in a step?

    <p>Schedule Automatic Step Progression (D)</p> Signup and view all the answers

    In what sequence should you configure compensation steps?

    <p>Create the compensation grade, then build the compensation steps. (A)</p> Signup and view all the answers

    Which type of worker is the compensation step feature most commonly used for?

    <p>Hourly workers. (C)</p> Signup and view all the answers

    What staffing event is mentioned as a time to assign a step to a worker?

    <p>Hire (D)</p> Signup and view all the answers

    Following the configuration and assignment of a compensation step, when can progressions be scheduled?

    <p>Periodically using the automatic step progression process. (B)</p> Signup and view all the answers

    What does the 'Assign 1st Step Compensation During Proposal' action allow the system to do?

    <p>It automatically assigns a new employee to the first compensation step of their grade or grade profile. (A)</p> Signup and view all the answers

    What is the primary role of a compensation administrator regarding compensation elements?

    <p>Mapping and maintaining compensation elements and element groups. (D)</p> Signup and view all the answers

    Why might a company choose to create a unique compensation element for each compensation plan?

    <p>Because allowance requirements may vary from one plan to another. (C)</p> Signup and view all the answers

    What is the purpose of a compensation element group?

    <p>To define <strong>Total Base Pay</strong>. (B)</p> Signup and view all the answers

    How are compensation element groups typically associated within a compensation structure?

    <p>With compensation grades and grade profiles, potentially varying by country or population. (C)</p> Signup and view all the answers

    What primary function do compensation grades serve in determining employee pay?

    <p>To provide a standard compensation range for a given job or job level. (B)</p> Signup and view all the answers

    During salary data entry, what guidance do the segments (tertiles, quartiles, or quintiles) within compensation grades provide?

    <p>They provide a distribution of pay within the range for guidance. (D)</p> Signup and view all the answers

    For the Total Base Pay compensation basis, what is Workday's requirement regarding a compensation range?

    <p>Workday requires a compensation range. (C)</p> Signup and view all the answers

    What action does the system take if a salary is entered outside of the defined pay range in Workday?

    <p>The system generates a warning message, but allows the entry. (C)</p> Signup and view all the answers

    How do compensation grade profiles enhance the functionality of compensation grades?

    <p>By allowing for more granular compensation ranges based on location or other business-related criteria. (B)</p> Signup and view all the answers

    What role does the Schedule Automatic Step Progression process play in the context of compensation steps?

    <p>It drives the process of increasing an employee's compensation amount based on their time in a step. (A)</p> Signup and view all the answers

    Which of the following is an example of an additional factor that can be applied to a step progression rule?

    <p>Age, length of service, job profile, or collective agreements. (D)</p> Signup and view all the answers

    In what scenario is the use of compensation steps most commonly observed?

    <p>For compensation grades with an hourly frequency. (C)</p> Signup and view all the answers

    What action must occur before you can schedule progressions periodically using the automatic step progression process?

    <p>A staffing event such as <strong>Hire</strong> must be used to assign the step to a worker (A)</p> Signup and view all the answers

    What is the primary trigger for Workday's automatic compensation step progression process?

    <p>The current date being later than an employee's next step start date. (C)</p> Signup and view all the answers

    What happens if an employee is participating in a parallel compensation event when the step progression process runs?

    <p>The process skips the employee and attempts to progress them on the next run. (D)</p> Signup and view all the answers

    An employee was supposed to progress on July 1st. However, the automatic step process only succeeds on August 15th due to a prior compensation event. What date will the employee's step change be effective?

    <p>July 1st, the original intended progression date. (B)</p> Signup and view all the answers

    Which report provides a list of all step progressions within a specified timeframe?

    <p>Employee Compensation Step Progression report (C)</p> Signup and view all the answers

    If you need to run step and grade progression reports automatically, what task should you use in Workday?

    <p>Schedule a Report (A)</p> Signup and view all the answers

    When setting up the automated step progression process, how can you exclude specific employees from being processed?

    <p>By using the <code>Exclude Employees</code> option. (A)</p> Signup and view all the answers

    Where would you configure compensation steps for a specific compensation grade in Workday?

    <p>Using the <code>Maintain Compensation Steps</code> task. (A)</p> Signup and view all the answers

    Besides maintaining compensation steps, what other feature can be built to allow compensation variations across different employee populations?

    <p>Grade profiles (C)</p> Signup and view all the answers

    An employee is hired directly into a specific compensation step. How does the 'Employee Compensation Step Progression' report reflect this event?

    <p>The old step value remains blank, indicating it's their initial step. (D)</p> Signup and view all the answers

    What is the primary purpose of the 'Employees Eligible for Next Grade' report?

    <p>To list employees who have reached the final compensation step in their current grade. (D)</p> Signup and view all the answers

    An organization wants to understand all compensation changes that occurred for an employee in the last quarter, including automatic step progressions and manual adjustments. Which report would provide this information?

    <p>'Employee Compensation Step Progression' report (D)</p> Signup and view all the answers

    Which type of compensation event is recorded in the 'Employee Compensation Step Progression' report?

    <p>Employees advancing to the next step through automatic step progression. (A)</p> Signup and view all the answers

    A manager wants to review details of a specific compensation change for one of their team members. How can they access further information from the 'Employee Compensation Step Progression' report?

    <p>By selecting the various links on a compensation change to drill into details. (D)</p> Signup and view all the answers

    Flashcards

    Compensation Grade Profiles

    Define localizations and assign compensation ranges to employees.

    Granular Compensation Ranges

    More specific pay ranges within a compensation grade.

    Step in Compensation Grade

    A level within a salary range that assigns specific pay amounts.

    Automatic Step Progression

    Process that drives salary increases based on steps.

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    Progression Rule

    Factors affecting salary increments such as age or service length.

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    Staffing Event

    Actions like ‘Hire’ that assign compensation steps to workers.

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    First Step Compensation Assignment

    Automatically assigns employees to the first compensation step in their grade.

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    Compensation Steps

    Specific increments in pay based on defined progression rules.

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    Employee Compensation Step Progression report

    A report listing all employee step progressions for a defined period.

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    Schedule a Report task

    A task to automate report generation for employee compensation steps.

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    Exclude Employees option

    A feature to select specific employees to omit from reports.

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    Maintain Compensation Steps task

    A task to create or adjust steps for specific compensation grades.

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    Compensation eligibility rule

    A guideline determining which employees qualify for certain compensation steps.

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    Grade profiles

    Structures used to define variations in compensation across employee groups.

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    Step progression process

    An automatic system that advances employees to the next compensation step.

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    Reports for employee information

    Documents that provide details on employee compensation steps and grades.

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    Compensation Elements

    Components used in creating compensation plans, like bonuses and allowances.

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    Element Groups

    Groups that define categories like Total Base Pay for compensation planning.

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    Compensation Administrator

    Person responsible for mapping and maintaining compensation elements and groups.

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    Compensation Grades

    Standard compensation ranges for specific job levels or types.

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    Pay Range Segments

    Divisions within a pay range, typically in 3, 4, or 5 segments.

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    Total Base Pay

    The foundational salary basis for employee compensation within grades.

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    Compa-Ratio

    A calculation used to compare an individual's pay to the midpoint of the salary range.

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    Schedule Automatic Step Progression

    A process that automates salary increases based on employee progression criteria.

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    Step Progression

    The process that advances employees to the next compensation step based on eligibility and date criteria.

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    Eligibility Criteria

    Conditions that determine if an employee can progress to the next compensation step.

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    Step End Date

    The deadline after which an employee's current compensation step ends.

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    Step Progression Audit

    A report listing employees who are in the automatic step progression process.

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    Maintain Compensation Steps

    A task to create and manage compensation steps for different grades.

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    Parallel Compensation Event

    An active pay adjustment process that pauses step progression for an employee.

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    Employee Compensation Step Progression

    Report listing employees with compensation step changes within a period, including automatic progression, new hires, and manual changes.

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    Compensation Event

    Specific occurrences that trigger a change in an employee's compensation step, like hiring or manual adjustment.

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    Details on Step Changes

    Information accessible via links for each compensation change, showing specifics of employee adjustments.

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    Employees Eligible for Next Grade

    Report listing employees who have reached the highest step in their current grade and can be promoted.

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    Old Step Value in Hire Events

    In hire compensation events, there is no old step value because it’s the employee's first step.

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    Study Notes

    Compensation Basis

    • Compensation basis allows for different definitions of estimated earnings across populations.
    • It features a "Manage by Basis Total (MBT)" function that uses an algorithm to distribute pay.
    • Compensation basis can be used as a basis for bonuses, stock, allowances, and period salary.
    • Compensation basis can also be used for merit increases.

    Configurable Compensation Basis

    • Four steps to create and manage compensation bases in Workday:
      • Access the Create Configurable Compensation Basis task.
      • Select compensation plans.
      • Adjust the compensation basis.
      • Run a report to identify employees without eligible compensation bases.
    • Compensation basis configuration options from the Maintain Compensation Basis page include:
      • Name
      • Eligibility Rule
      • Functional Area
      • Use to View Compensation
      • Ranking
    • Compensation bases can be deleted.

    Compensation Plans

    • Available compensation plans include Salary Plans, Period Salary Plans, Bonus Plans, Retirement Savings Plans, Allowance Plans, Commission Plans, and Future Payment Plans.
    • Eligibility Rule: If left blank, all employees use the definition. If eligible for multiple definitions, ranking determines which displays in reports.
    • Functional Area: four functional areas available for selection.

    Use to View Compensation

    • When checked, the compensation basis is used in reports and analytics.
    • Uncheck if the basis has a specific purpose (like calculating a bonus).

    Ranking

    • Only the highest-ranked compensation basis is the employee's primary basis.
    • Maximum percentage amount that can be entered for salary plan allocation (cannot exceed 100%).

    Retention of Total Basis

    • Workday retains the total compensation basis even with staffing changes.

    Compensation Plan Options

    • All: Includes all compensation plans of one type
    • Base Pay Only: Includes only compensation plans of one type if compensation element is selected.
    • Select Plans: Only includes specific compensation plans of one type.
    • None of the Above: Excludes the plan type from the calculation

    Compensation Grades and Compensation Basis

    • Workday allows for the creation of unique pay ranges for each compensation basis, providing insight into compensation changes.
    • Two compensation bases display for each employee: Total Base Pay and highest-ranked basis.

    Manage Compensation Basis

    • Workday allows managing employee compensation using their compensation basis, such as Manage Basis Total (MBT).
    • In MBT, a single total compensation amount is entered, distributing it to all compensation components within that basis, following an algorithm.

    Retirement Savings and Compensation Basis

    • Retirement savings plans use mapping to the compensation basis to define the employer contribution percentage.
    • Salary in payroll is defined on the compensation basis.

    Knowledge Check

    • Three correct Workday delivered compensation bases: Total Base Pay, Total Salary & Allowances, Eligible Earnings Override (and Total Rewards)
    • Total Base Pay, Total Salary and Allowances available for loading using EIB; Manage Basis Total not directly loadable using EIB

    Compensation Elements

    • Link compensation to payroll.
    • Identify the components using compensation elements.
    • Compensation elements map and maintain compensation plans.
    • Specific plan types may require unique elements (i.e., bonus plans vs. allowances).

    Compensation Grade and Grade Profiles

    • Grade is a standard compensation range for a job/level.
    • Grades provide minimum, midpoint, and 3, 4, or 5 segments to guide salary/hourly pay rate entry.
    • Grades can show tertiles, quartiles, or quintiles during data entry.
    • Segments are used in reports for compensation change guidance and compa-ratio calculation.
    • If a salary is outside the pay range, a warning message is issued.
    • Compensations with different currencies are allowed per grade.
    • Compensation grade profiles define localization of a compensation grade for a specific population.

    Creating Compensation Grade Steps

    • Compensation steps within a compensation grade set a specific amount and progression rule for salary.
    • Additional factors for progression include age, length of service, job profile, and collective agreements.
    • Scheduled automatic step progressions can be implemented.

    Running Step Progression Process

    • Compensation steps are progressed for workers based on today's date.
    • Email notifications are sent to personnel.
    • Progression is based on next step start dates.

    Maintaining Compensation Steps

    • Compensation steps are managed using the Maintain Compensation Steps task.
    • Grade profiles and steps within profiles allow for population-wide variations.

    Quality Step Increases

    • Workday enables quality step increases without impacting standard step progression.
    • Quality step increases have a review step.
    • Within grade increase notifications allow managers to ease approval or denial of within grade increases.

    Job Profiles

    • Compensation grades and grade profiles are associated with job profiles.
    • This association can override grade eligibility rules on compensation components.

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    Related Documents

    Compensation for Administrators Chapter 4-6 PDF

    Description

    Test your knowledge on the Employee Compensation Step Progression process in Workday. This quiz covers scheduling, reports, and criteria related to employee step progressions. Assess your understanding of compensation rules and reporting functionalities within the system.

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