Compensation for Administrators Chapter 4-6 PDF

# Compensation for Administrators ## Chapter 4 - Compensation Basis ### Overview - How do you calculate compensation? - How do you define it across your entire population? - This chapter explains compensation basis. - Compensation creates different definitions of estimated earnings for multiple p...

# Compensation for Administrators ## Chapter 4 - Compensation Basis ### Overview - How do you calculate compensation? - How do you define it across your entire population? - This chapter explains compensation basis. - Compensation creates different definitions of estimated earnings for multiple populations across a country and the globe. - Compensation uses the **Manage by Basis Total (MBT)** function. - MBT manages an employee's compensation based on a top-down algorithm to distribute pay. ### Objectives - Define compensation basis and map its usage in reports and analytics. - Administer compensation basis. - Describe the **Manage by Basis Total (MBT)** compensation basis. - Configure an MBT compensation basis. ### Compensation Basis Overview - Compensation basis allows you to define a unique estimation to use as: - The basis for bonus, stock, allowances, and period salary. - The amount for merit increases. - Compensation basis can be viewed on reports. - Three compensation bases: | Action | Definition | |--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Total Base Pay | The sum of any compensation components using the Base Pay Elements field of the employee's compensation grade or compensation grade profile. | | Total Salary and Allowances | The sum of all the salary and allowance plans on a position. | | Eligible Earnings Override | A field enables you to define a currency amount used for bonus calculations and percent-based stock plans. You can use an inbound Enterprise Interface Builder (EIB) to import employee eligible earnings amounts during compensation review processing in Workday. | ### Configurable Compensation Basis - Four steps to creating and managing compensation basis in Workday: 1. Access **Create Configurable Compensation Basis** task. 2. Select compensation plans to include in the compensation basis. 3. Adjust the compensation basis on the **Maintain Compensation Basis** page. Evaluate the rankings in relationship to other compensation bases. 4. Run the **Employees Missing a Compensation Basis** report to determine if there are employees without an eligible compensation basis. - You can edit a compensation basis from the **Maintain Compensation Basis** page. - Changes include: - Name - Eligibility Rule - Functional Area - Use to View Compensation - Ranking - You can delete a compensation basis. ### Maintain Compensation Basis - When configuring a compensation basis, the following compensation plans are available: - Salary Plans - Period Salary Plans - Allowance Plans - Bonus Plans - Retirement Savings Plans - Commission Plans - Calculated Plans - Future Payment Plans - The following fields are available when configuring a compensation basis: | Action | Definition | |--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Eligibility Rule | There are a few configuration options: - **If left blank**: all employees can use this definition. - **If an employee is eligible for more than one definition**: then you would need to rank the definitions. The one with the highest ranking will display for that employee in reports, such as the **Compensation Basis Analytics** report. | | Functional Area | There are four functional areas to choose from: - **Compensation -** If you want to view in compensation-related transactions or severance worksheet. - **Benefits -** If you include retirement savings plans. - **Projects and Work -** If you want to use it to derive a fully burdened cost rate for worker on a project. - **Planning -** If you want to use a worksheet with data such as headcount from Workday Planning. - You can select more than one functional area. | | Use to View Compensation | Select this checkbox if using this basis in reports and analytics. If a compensation basis has a specific purpose, such as calculating a percent-based bonus, clear this box. | | Ranking | Employees may be eligible for more than one compensation basis, but only the highest-ranked basis is the employee's primary basis. | | Salary Plans Maximum | Enter a maximum percentage amount for salary plan allocation. You cannot enter a value greater than 100. For example, if you enter 80%, then the amount allocated to salary plans cannot be greater than 80% of the employee's total compensation basis. You must disperse the remaining 20% between plans allowing override, such as allowance, bonus, and commission plans. | | Retain Basis Total | Workday retains the compensation basis total even when a staffing transaction changes compensation plan assignment. | | Compensation Plan Option | - **All -** Includes all compensation plans of one type. - **Base Pay Only -** Includes all compensation plans of one type only if the compensation element selected. - **Select Plans -** Includes only specific compensation plans of one type. - **None of the Above -** Excludes the plan type from the calculation. | ### Configurable Compensation Basis Examples - **On Target Earnings Example** - **Who is eligible?** Sales employee in U.S. - **What does it include?** Salary Plan + Cell Phone Allowance + All Commissions - **Cost to Company Example** - **Who is eligible?** Employee in India - **What does it include?** Salary Plan + All Bonuses + All Allowances + Pension - **Total Cash Example** - **Who is eligible?** Employee in UK - **What does it include?** Salary Plan + All Bonuses + All Allowances ## Manage Compensation Basis - Workday provides the option to manage an employee's compensation using their compensation basis. - One common basis is **Manage Basis Total** or **MBT**. - You can enter one total compensation amount, which distributes automatically to all the components of pay within the compensation basis using an algorithm. - For an employee with multiple plans, the increase or decrease applies to all assigned compensation plans. ## Retirement Savings and Compensation Basis - To show an employer contribution percentage, retirement savings plans must be mapped to the correct compensation basis to identify the designated percent. - This uses the **Map Retirement Savings Plans to Compensation Basis** task. - If you use a percentage of the salary plan to calculate an employer contribution amount, define salary in payroll for your retirement savings plans. - This mapping only controls how salary is defined on the compensation basis. ## Compensation Grades and the Compensation Basis - In addition to total base pay, you can set up unique pay ranges for each compensation basis. - These unique pay ranges provide more insight when initiating a compensation change. - Only two compensation bases will display for an employee: 1. **Total Base Pay** 2. The highest-ranked basis for which the employee is eligible. ## Compensation Grades and Grade Profiles - A grade is a standard compensation range for a given job or job level. - Compensation grades provide guidance when entering salary or hourly pay rates by defining minimum, midpoint, and three, four, or five segments. - These segments provide tertiles, quartiles, or quintiles during data entry. - These segments can appear in reports and provide guidance during a compensation change process. - They can also be helpful when calculating the compa-ratio. - For the **Total Base Pay** compensation basis, Workday requires a compensation range. - You can set up more than one compensation basis and range for a grade. - If you enter a salary outside of the pay range, the system generates a warning message, but not an error message. - The fields are as follows: | Action | Definition | |-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | **Pay Range Segments** | Select 3, 4, or 5 to designate the number of pay range segments. | | **Base Pay Elements** | Select the compensation elements or element groups you want to associate with this grade. | | **Eligibility Rules** | One or more rules determines who is eligible for the compensation grade. Remember, if the eligibility rule field is blank, you need to associate the compensation grade with a job profile. | | **Compensation Basis** | A compensation basis can have unique pay ranges. Only two compensation bases will display for an employee: **Total Base Pay** and the highest ranked basis for which the employee is eligible. | | **Enable the Compensation Basis on Reports and Worker Package Analytics** | Enable the Compensation Basis on the Compensation Package Analytics to view this information on reports and worker profiles. | | **Calculate Segments Minimum** | Select this checkbox to have the system calculate or recalculate each segment. Enter the minimum of the pay range | ### Compensation Grade Profiles - A compensation grade allows you to define one default pay range for the eligible population. - For some deployments, a single population may have variations based on location or some other business-related criteria. - Compensation grade profiles define localizations and allow you to assign more granular compensation ranges to employees. - These ranges can also have different currencies, allowing one compensation grade for a global population. ### Creating Steps Within Compensation Grades - A step occurs within a compensation grade or grade profile salary range. - Steps assign a specific amount to a worker's salary or hourly plan. - Based on the time in a step, the amount increases. - You can apply a progression rule to a step with an additional factor. - Additional factors include age, length of service, job profile, or collective agreements. - The **Schedule Automatic Step Progression** process drives the amount increase process. - First, create the compensation grade. Then, build the compensation steps. - This feature is common for compensation grades with an hourly frequency, but you can use it for salary workers too. - After this configuration, you must assign the step to a worker using a staffing event such as **Hire**. - Then, you can schedule progressions periodically using the automatic step progression process. - The table below outlines primary fields for step configuration: | Action | Definition | |------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | **Assign 1st Step Compensation During Proposal** | Allows the system to automatically assign an employee to the first compensation step of their grade or grade profile. | | **Sequence** | Determines the step progression order for employees assigned to the grade or grade profile. | | **Interval** | Defines the length of time an employee must remain in the step before progressing to the next step. | | **Period** | Use with the interval to define how long an employee must be in the step before progressing to the next step. | | **Progression Rule** | Optionally, select an eligibility rule to define how long a worker should stay in the step before progressing to the next. A few examples of criteria that would stop step progression are poor performance review, job profile, length of service, leave status, or collective agreement. If only using a progression rule, you can leave the interval and period blank. | ### Running the Step Progression Process - You can create compensation grades with steps within the grade that an employee would progress through based on the preset intervals. --- for example an employee's hourly rate increased after six months of service, and another increase after a year. - The progression process scans all employees with compensation steps. - Workday evaluates today's date with their next step start date. - If today's date is greater than the next step start date, then the process progresses these eligible employees to the next step in their grade. - Upon completion, the process updates compensation history for these employees and sends an email notification to personnel that support the employee. - The process moves employees to the next step on the appropriate effective as of date in their assigned compensation step. - If an employee is participating in a parallel compensation event at run time, the process does not progress them until the next run --- for example, if an employee has a step end date of July 1, but participates in a compensation process on July 2, the automatic step process will ignore that employee. - The employee will populate on the **Step Progression Audit** report. - During each subsequent run, the process will again attempt to progress that employee to the next step until successful. - The date of step change will be July 1, no matter when the process finally succeeds. - To view a list of employees involved in the step progression, run the **Employee Compensation Step Progression report** or **Employees Eligible for Next Compensation Step Audit report**. - Workday recommends that you schedule to run related step and grade progression reports while you run this process. - The **Employee Compensation Step Progression report** will list all step progressions within a defined period. - If you would like to automate these reports to run, use the **Schedule a Report** task: - For all employees with a compensation step. - By compensation eligibility rule. - By specific employees with a compensation step. - If you select either the **All Employees with a Compensation Step** or based on an eligibility rule, there may be a need to create exceptions. - Use the **Exclude Employees** option to select individual employees to exclude. ### Maintain Compensation Steps - Create steps using the **Maintain Compensation Steps** task for a specific compensation grade. - You can also build grade profiles and steps within each profile to allow variations across a population of employees. - Use the following list of reports to view employee information regarding step and grade progression. - For each report, this table describes the purpose and next steps: | Report Name | Purpose | |-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | **Employee Compensation Step Progression** | This report lists, by compensation event, the employees who have had a compensation step change within the specified period. The report captures: - Employees who have advanced to the next step through the automatic step progression process. - Employees hired into a compensation step. - Employees who have had a manual compensation change. Select the various links on a compensation change to drill into details. For Hire compensation events, the old step value remains blank because it is their first step. | | **Employees Eligible for Next Grade** | The report lists relevant details about employees who have: - Reached the last compensation step in their current grade. - Satisfied the time requirement. - Are eligible to progress into the first step of the next grade. | ### Quality Step Increases - You can grant employees a quality step increase without impacting a standard step progression. - Workday enables you to create and secure the **Quality Step Increase** business process definition. - You can configure this process to contain a review step. - Use the **Maintain Event Categories and Reasons** task to configure Quality Step Increase Reasons to identify when a compensation event should not impact the step progression start date. - Then, add Quality Step Increase Reason codes to the **Edit Step Progression Configuration** task. - This process is useful for U.S. Federal, State, and Government agencies; however, commercial customers may have valid use cases for using the functionality. ### Within Grade Increase Notifications - Configure the **Within Grade Increase Notifications** security policy and business process definition. - With this feature, managers will receive within grade increase notifications based on your configured schedule. - Managers can then approve or deny the within grade increase upon receiving the notification. ## Chapter 5 - Compensation Elements and Grades ### Overview - Compensation elements are a bridge between compensation and payroll. - When a compensation element is attached to a plan and an employee is participating in the plan, then payroll earnings can drive employee pay. - Grades define the standard compensation range for a job or job level. - Grade profiles allow you to establish localization for grades, eliminating the need to set up multiple grades to account for geographic or currency differences. - Workday requires grades, but grade profiles are optional. ### Objectives - Explain compensation elements and compensation element groups. - Identify the compensation components that use compensation elements. - Demonstrate how to configure compensation grades, grade profiles, and grade steps. ### Compensation Elements and Element Groups ### Compensation Elements - The compensation administrator is responsible for mapping and maintaining the compensation elements and element groups. - Depending on the type of compensation plan, you may need to create a unique compensation element for each plan. - For example, bonus plans may share the same earnings element, but an allowance may be different from one allowance plan profile plan to another. ### Element and Element Groups - A compensation element group allows you to define **Total Base Pay**. - You associate that element group with compensation grades and grade profiles with different countries or populations. - Compensation element groups are optional. ### Compensation Grades and Grade Profiles - A grade is a standard compensation range for a given job or job level. - Compensation grades provide guidance when entering salary or hourly pay rates by defining minimum, midpoint, and three, four, or five segments. - These segments provide tertiles, quartiles, or quintiles during data entry. - These segments can appear in reports and provide guidance during a compensation change process. - They can also be helpful when calculating the compa-ratio. - For the **Total Base Pay** compensation basis, Workday requires a compensation range. - You can set up more than one compensation basis and range for a grade. - If you enter a salary outside of the pay range, the system generates a warning message, but not an error message. - The fields are as follows: | Action | Definition | |-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | **Pay Range Segments** | Select 3, 4, or 5 to designate the number of pay range segments. | | **Base Pay Elements** | Select the compensation elements or element groups you want to associate with this grade. | | **Eligibility Rules** | One or more rules determines who is eligible for the compensation grade. Remember, if the eligibility rule field is blank, you need to associate the compensation grade with a job profile. | | **Compensation Basis** | A compensation basis can have unique pay ranges. Only two compensation bases will display for an employee: **Total Base Pay** and the highest ranked basis for which the employee is eligible. | | **Enable the Compensation Basis on Reports and Worker Package Analytics** | Enable the Compensation Basis on the Compensation Package Analytics to view this information on reports and worker profiles. | | **Calculate Segments Minimum** | Select this checkbox to have the system calculate or recalculate each segment. Enter the minimum of the pay range | ### Compensation Grade Profiles - A compensation grade allows you to define one default pay range for the eligible population. - For some deployments, a single population may have variations based on location or some other business-related criteria. - Compensation grade profiles define localizations and allow you to assign more granular compensation ranges to employees. - These ranges can also have different currencies, allowing one compensation grade for a global population. ### Creating Steps Within Compensation Grades - A step occurs within a compensation grade or grade profile salary range. - Steps assign a specific amount to a worker's salary or hourly plan. - Based on the time in a step, the amount increases. - You can apply a progression rule to a step with an additional factor. - Additional factors include age, length of service, job profile, or collective agreements. - The **Schedule Automatic Step Progression** process drives the amount increase process. - First, create the compensation grade. Then, build the compensation steps. - This feature is common for compensation grades with an hourly frequency, but you can use it for salary workers too. - After this configuration, you must assign the step to a worker using a staffing event such as **Hire**. - Then, you can schedule progressions periodically using the automatic step progression process. - The table below outlines primary fields for step configuration: | Action | Definition | |------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | **Assign 1st Step Compensation During Proposal** | Allows the system to automatically assign an employee to the first compensation step of their grade or grade profile. | | **Sequence** | Determines the step progression order for employees assigned to the grade or grade profile. | | **Interval** | Defines the length of time an employee must remain in the step before progressing to the next step. | | **Period** | Use with the interval to define how long an employee must be in the step before progressing to the next step. | | **Progression Rule** | Optionally, select an eligibility rule to define how long a worker should stay in the step before progressing to the next. A few examples of criteria that would stop step progression are poor performance review, job profile, length of service, leave status, or collective agreement. If only using a progression rule, you can leave the interval and period blank. | ### Running the Step Progression Process - You can create compensation grades with steps within the grade that an employee would progress through based on the preset intervals. --- for example an employee's hourly rate increased after six months of service, and another increase after a year. - The progression process scans all employees with compensation steps. - Workday evaluates today's date with their next step start date. - If today's date is greater than the next step start date, then the process progresses these eligible employees to the next step in their grade. - Upon completion, the process updates compensation history for these employees and sends an email notification to personnel that support the employee. - The process moves employees to the next step on the appropriate effective as of date in their assigned compensation step. - If an employee is participating in a parallel compensation event at run time, the process does not progress them until the next run --- for example, if an employee has a step end date of July 1, but participates in a compensation process on July 2, the automatic step process will ignore that employee. - The employee will populate on the **Step Progression Audit** report. - During each subsequent run, the process will again attempt to progress that employee to the next step until successful. - The date of step change will be July 1, no matter when the process finally succeeds. - To view a list of employees involved in the step progression, run the **Employee Compensation Step Progression report** or **Employees Eligible for Next Compensation Step Audit report**. - Workday recommends that you schedule to run related step and grade progression reports while you run this process. - The **Employee Compensation Step Progression report** will list all step progressions within a defined period. - If you would like to automate these reports to run, use the **Schedule a Report** task: - For all employees with a compensation step. - By compensation eligibility rule. - By specific employees with a compensation step. - If you select either the **All Employees with a Compensation Step** or based on an eligibility rule, there may be a need to create exceptions. - Use the **Exclude Employees** option to select individual employees to exclude. ### Maintain Compensation Steps - Create steps using the **Maintain Compensation Steps** task for a specific compensation grade. - You can also build grade profiles and steps within each profile to allow variations across a population of employees. - Use the following list of reports to view employee information regarding step and grade progression. - For each report, this table describes the purpose and next steps: | Report Name | Purpose | |-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | **Employee Compensation Step Progression** | This report lists, by compensation event, the employees who have had a compensation step change within the specified period. The report captures: - Employees who have advanced to the next step through the automatic step progression process. - Employees hired into a compensation step. - Employees who have had a manual compensation change. Select the various links on a compensation change to drill into details. For Hire compensation events, the old step value remains blank because it is their first step. | | **Employees Eligible for Next Grade** | The report lists relevant details about employees who have: - Reached the last compensation step in their current grade. - Satisfied the time requirement. - Are eligible to progress into the first step of the next grade. | ### Quality Step Increases - You can grant employees a quality step increase without impacting a standard step progression. - Workday enables you to create and secure the **Quality Step Increase** business process definition. - You can configure this process to contain a review step. - Use the **Maintain Event Categories and Reasons** task to configure Quality Step Increase Reasons to identify when a compensation event should not impact the step progression start date. - Then, add Quality Step Increase Reason codes to the **Edit Step Progression Configuration** task. - This process is useful for U.S. Federal, State, and Government agencies; however, commercial customers may have valid use cases for using the functionality. ### Within Grade Increase Notifications - Configure the **Within Grade Increase Notifications** security policy and business process definition. - With this feature, managers will receive within grade increase notifications based on your configured schedule. - Managers can then approve or deny the within grade increase upon receiving the notification. ## Chapter 5 - Compensation Elements and Grades ### Overview - Compensation elements are a bridge between compensation and payroll. - When a compensation element is attached to a plan and an employee is participating in the plan, then payroll earnings can drive employee pay. - Grades define the standard compensation range for a job or job level. - Grade profiles allow you to establish localization for grades, eliminating the need to set up multiple grades to account for geographic or currency differences. - Workday requires grades, but grade profiles are optional. ### Objectives - Explain compensation elements and compensation element groups. - Identify the compensation components that use compensation elements. - Demonstrate how to configure compensation grades, grade profiles, and grade steps. ### Compensation Elements and Element Groups ### Compensation Elements - The compensation administrator is responsible for mapping and maintaining the compensation elements and element groups. - Depending on the type of compensation plan, you may need to create a unique compensation element for each plan. - For example, bonus plans may share the same earnings element, but an allowance may be different from one allowance plan profile plan to another. ### Element and Element Groups - A compensation element group allows you to define **Total Base Pay**. - You associate that element group with compensation grades and grade profiles with different countries or populations. - Compensation element groups are optional. ### Compensation Grades and Grade Profiles - A grade is a standard compensation range for a given job or job level. - Compensation grades provide guidance when entering salary or hourly pay rates by defining minimum, midpoint, and three, four, or five segments. - These segments provide tertiles, quartiles, or quintiles during data entry. - These segments can appear in reports and provide guidance during a compensation change process. - They can also be helpful when calculating the compa-ratio. - For the **Total Base Pay** compensation basis, Workday requires a compensation range. - You can set up more than one compensation basis and range for a grade. - If you enter a salary outside of the pay range, the system generates a warning message, but not an error message. - The fields are as follows: | Action | Definition | |-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | **Pay Range Segments** | Select 3, 4, or 5 to designate the number of pay range segments. | | **Base Pay Elements** | Select the compensation elements or element groups you want to associate with this grade. | | **Eligibility Rules** | One or more rules determines who is eligible for the compensation grade. Remember, if the eligibility rule field is blank, you need to associate the compensation grade with a job profile. | | **Compensation Basis** | A compensation basis can have unique pay ranges. Only two compensation bases will display for an employee: **Total Base Pay** and the highest ranked basis for which the employee is eligible. | | **Enable the Compensation Basis on Reports and Worker Package Analytics** | Enable the Compensation Basis on the Compensation Package Analytics to view this information on reports and worker profiles. | | **Calculate Segments Minimum** | Select this checkbox to have the system calculate or recalculate each segment. Enter the minimum of the pay range | ### Compensation Grade Profiles - A compensation grade allows you to define one default pay range for the eligible population. - For some deployments, a single population may have variations based on location or some other business-related criteria. - Compensation grade profiles define localizations and allow you to assign more granular compensation ranges to employees. - These ranges can also have different currencies, allowing one compensation grade for a global population. ### Creating Steps Within Compensation Grades - A step occurs within a compensation grade or grade profile salary range. - Steps assign a specific amount to a worker's salary or hourly plan. - Based on the time in a step, the amount increases. - You can apply a progression rule to a step with an additional factor. - Additional factors include age, length of service, job profile, or collective agreements. - The **Schedule Automatic Step Progression** process drives the amount increase process. - First, create the compensation grade. Then, build the compensation steps. - This feature is common for compensation grades with an hourly frequency, but you can use it for salary workers too. - After this configuration, you must assign the step to a worker using a staffing event such as **Hire**. - Then, you can schedule progressions periodically using the automatic step progression process. - The table below outlines primary fields for step configuration: | Action | Definition | |------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | **Assign 1st Step Compensation During Proposal** | Allows the system to automatically assign an employee to the first compensation step of their grade or grade profile. | | **Sequence** | Determines the step progression order for employees assigned to the grade or grade profile. | | **Interval** | Defines the length of time an employee must remain in the step before progressing to the next step. | | **Period** | Use with the interval to define how long an employee must be in the step before progressing to the next step. | | **Progression Rule** | Optionally, select an eligibility rule to define how long a worker should stay in the step before progressing to the next. A few examples of criteria that would stop step progression are poor performance review, job profile, length of service, leave status, or collective agreement. If only using a progression rule, you can leave the interval and period blank. | ### Running the Step Progression Process - You can create compensation grades with steps within the grade that an employee would progress through based on the preset intervals. --- for example an employee's hourly rate increased after six months of service, and another increase after a year. - The progression process scans all employees with compensation steps. - Workday evaluates today's date with their next step start date. - If today's date is greater than the next step start date, then the process progresses these eligible employees to the next step in their grade. - Upon completion, the process updates compensation history for these employees and sends an email notification to personnel that support the employee. - The process moves employees to the next step on the appropriate effective as of date in their assigned compensation step. - If an employee is participating in a parallel compensation event at run time, the process does not progress them until the next run --- for example, if an employee has a step end date of July 1, but participates in a compensation process on July 2, the automatic step process will ignore that employee. - The employee will populate on the **Step Progression Audit** report. - During each subsequent run, the process will again attempt to progress that employee to the next step until successful. - The date of step change will be July 1, no matter when the process finally succeeds. - To view a list of employees involved in the step progression, run the **Employee Compensation Step Progression report** or **Employees Eligible for Next Compensation Step Audit report**. - Workday recommends that you schedule to run related step and grade progression reports while you run this process. - The **Employee Compensation Step Progression report** will list all step progressions within a defined period. - If you would like to automate these reports to run, use the **Schedule a Report** task: - For all employees with a compensation step. - By compensation eligibility rule. - By specific employees with a compensation step. - If you select either the **All Employees with a Compensation Step** or based on an eligibility rule, there may be a need to create exceptions. - Use the **Exclude Employees** option to select individual employees to exclude. ### Maintain Compensation Steps - Create steps using the **Maintain Compensation Steps** task for a specific compensation grade. - You can also build grade profiles and steps within each profile to allow variations across a population of employees. - Use the following list of reports to view employee information regarding step and grade progression. - For each report, this table describes the purpose and next steps: | Report Name | Purpose | |-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | **Employee Compensation Step Progression** | This report lists, by compensation event, the employees who have had a compensation step change within the specified period. The report captures: - Employees who have advanced to the next step through the automatic step progression process. - Employees hired into a compensation step. - Employees who have had a manual compensation change. Select the various links on a compensation change to drill into details. For Hire compensation events, the old step value remains blank because it is their first step. | | **Employees Eligible for Next Grade** | The report lists relevant details about employees who have: - Reached the last compensation step in their current grade.