Total Compensation allows for a holistic view of both monetary and share-based rewards. The use of the Total Compensation plan provides efficient process as it uses a single template to manage salary, short-term, and long-term incentives. Total Compensation rewards can be viewed without running multiple reports.
Total Compensation plans can only be created when Compensation and Variable Pay are both implemented. The setup requires an understanding of both modules. If you’re not yet familiar with Variable Pay settings, go through the separate administrator guide for Variable Pay. Total Compensation uses one route map; if you’re using different approval process for merit and bonus planning, Total Compensation may not be the ideal solution for you.
Total Compensation plans can be created from scratch or by copying existing Compensation and Variable Pay plans as a baseline.
To create a plan, follow these steps:
- Navigate to Compensation Home.
- Select Add new total compensation plan.
- Choose to either Create from scratch or Copy existing plan templates.
If copying from existing plans, you’ll choose which salary and bonus plan to use as a .baseline. If you’re selecting to copy existing plans, ensure that both plans are either Employee Central-integrated templates or non-Employee Central-integrated templates
- As a part of the plan template copy process, you have an option to update the following information:
- Plan Name
- Bonus Start / End dates
- Fiscal Year end date
- New Effective date (for Employee Central-integrated plans)
- An option to clone the compensation worksheet eligibility rules
- Which variable pay data files (employee history, business goals and weights, bonus plans and eligibility) will be cloned
- An option to update the rating source for Variable Pay
When a new plan is created, you will notice the admin settings for salary and bonus are segregated to easily determine which setting is associated to which component.
Note
Total Compensation has made it easier to display bonus payouts in salary tab without importing or exporting data from different plans. As administrators, you can design the salary sheet to display variable pay columns and give planners an overall perspective of total cash incentives.
In this example, the field group Bonus Components is created to display the payouts from Variable Pay tab.
With Use a field option, administrators can easily reference any entry-level fields in variable pay sheet to be displayed in the Salary tab.
Administrators can also set up any custom field on the salary tab to launch the variable pay profile in read-only mode. This setup gives the planners an option to view calculation details of Variable Pay, not just the final bonus amount, for that employee without leaving the Salary sheet.
Any custom field in salary sheet can be set up as the access point for variable pay profile. The selected field will have a hyperlink. When planners select the link, variable pay details will be visible on the Compensation Profile pop up window.
As an administrator, bear in mind the expected behavioral changes in number formats when using Total Compensation templates.
Stand-alone compensation templates allow number formatting to be defined at Field Type level (for example, money type, percent type, and so on) while stand-alone Variable Pay templates allow for column-level number format (for example, one money field can use standard money format, while another money field can have a custom number format). Total Compensation plans, follow the number formatting at Field Type level, same as the stand-alone Compensation.
Percent type also behaves differently when used as custom or standard fields.
| Total Compensation Plan worksheets | Variable Pay standalone worksheets | |
|---|---|---|
| Percent type Custom fields | The system calculates percent type custom fields as a whole number on Salary, Stock and Variable Pay tabs, for example, 90% is stored as 90, instead of 0.90. We suggest you divide the value by 100 when you use percent type custom fields in an equation. This action will automatically adjust the value to appear as a real number. | The system calculates percent type custom fields as a real number, for example, 90% is stored as 0.90, and not as a whole number. |
| Percent type Standard fields | The system calculates percent type standard fields differently on Salary, Stock, and Variable Pay tabs of Total Compensation Plan worksheets. On Salary and Stock tabs, the behavior is the same as the standard field calculation, where the number formatting is defined at the field type level. On the Variable Pay tab, the value is stored as the real value. For example, 90% is stored as 0.90. As a result, you need not divide the values by 100 when you use standard fields of type percent in an equation. | |
| Field type "defBonusPctFormat" | You can use defBonusPctFormat to address precision differences between standard variable pay and standard compensation percent type fields. |
Points to Consider:
- If you are using Variable Pay standard fields in your custom formulas, you need not divide them by 100; for everything else you do.
- Any imports for % fields you are doing in Total Compensation for Compensation or Variable Pay need to be whole numbers.
- In reporting, you will notice that the Variable Pay standard % fields will export 90% as 0.90, while Compensation standard fields, and Compensation and Variable Pay custom fields exporting 90% as 90.