Explaining the Variable Pay Planning Structure

Standard Suite Hierarchy designates every employee with direct reports as the compensation planner for those that they manage.

This method is the simplest of the three methods as it requires no additional work. This system is not open to alterations of the manager/planner if there are special scenarios, except for manual interventions by an administrator.

In the Rollup Hierarchy scenario, individuals are designated compensation planners. Planners are responsible down the line of their hierarchy. They can be managers with direct reports; however, not every manager is necessarily a compensation planner. The designation is done through an imported file or the UI. This system allows for easy assignment of planners and can reduce the complexity and number of forms in use. It has the disadvantage of requiring defined communication and will not automatically designate a manager as a compensation planner.

In the Compensation Hierarchy, the hierarchy for compensation planning is created and can be 100% customized.

Employees designated as compensation planners may or may not be direct or indirect supervisors in the standard managerial hierarchy. This method provides the greatest degree of flexibility in assigning compensation managers.

The Compensation Hierarchy is most often used for organizations that want the hierarchy to remain frozen during planning or those where not all employees with direct reports conduct compensation planning.