Exploring the Rate Change Matrix

Objective

After completing this lesson, you will be able to navigate a Rate Change Matrix admin object.

Rate Change Matrix

A Rate Change Matrix (or RCM) is a functionality that allows organizations to define changes to rates or fees that occur over the period in which the worker is engaged. A common use of an RCM is when a worker may get an hourly wage increase after their tenure reaches a certain milestone.

For example, a buyer may have an office in a country that requires contingent workers to gain wage parity with full time workers over the course of that worker’s employment. A Rate Change Matrix allows the company to establish that wage scale so that workers’ wages are automatically raised during their engagement with the company.

Once created, the RCM can be selected on job posting templates and will automatically be triggered based on its configured lookup data, rules, and time frames.

A Job Posting Template in Edit mode displaying the Accounting section as some of the fields within in. The Use Rate Change Matrix, Rate Change Type, and the Rate Change Frequency fields are highlighted.
1When set to Yes, the Use Rate Change Matrix field enables rate change matrix functionality for this job posting template.
2

The value selected for the Rate Change Type field determines the type of rate change that will be used in the rate change matrix.

  • Selecting Percentages allows users to specify the percentages by which a base rate or cumulative rate will be increased or decreased.
  • Selecting Rate Value allows users to specify the actual values to which rates will change.
  • Selecting Buyer Defined requires users to specify the rate change matrix to assign to the template.
3

The value selected in the Rate Change Frequency field determines the frequency at which rates will change. This field does not display when the type is Buyer Defined.

  • By selecting Schedule users can specify the number of calendar days, weeks, or months from the job seeker available date or work order start date that the rate change will become effective.
  • By selecting Effective Date users can specify the date on which the rate change will become effective.

Navigating the Rate Change Matrix Admin Object

The Rate Structure section of the Admin Menu, the Rate Change Matrix selection is highlighted.
1To view the list of rate change matrices that WorkingNet uses, select Rate Change Matrix from the Company Structure section of the admin menu.

Rate Change Matrix List Page

Each Rate Change Matrix has a unique code that cannot include spaces or special characters, so it is recommended that the name be more descriptive.

Rate Change Matrix List page listing the available matrices, with columns for the Code and the Name for each matrix. The SRC link in the Code column is highlighted.
2To view the details of a rate change matrix, select an appropriate link in the Code column.

Rate Change Matrix Details Page

Before a rate change matrix can be configured, an applicable table of data must be loaded as a custom lookup and rate change matrix rules must be in place in the tenant. These define the logic driving the rate changes.

Rate Change Matrix Details page displaying the details and a section called Rate Change Matrix Component, which lists the rate components added to the matrix, including columns indicating the Name, Code, Data Type, Rate Change Matrix Rule and/or Custom Lookup, the Lookup Segment, and the Unit to Calculate for each component. The Use Tenure Policy Information row, the Start Date Defined By row, and the Default and Buyer Defined rows of the Rate Change Matrix Components section are highlighted.
3

The Use Tenure Policy Information field displays when the buyer has the company configuration, Tenure Policy Management enabled. There are three options:

  • If Do Not Use is selected, tenure is not used when defining the RCM
  • If Use to define Start Date is selected, tenure is used to define the start date. An additional required field displays, Tenure Policy Name. This drop down list is derived from the Tenure Policy Custom Lookup.
  • If Use to define Effective On is selected, tenure is used to define when the changes on the RCM become active. The Start Date defined by field does not apply.
4

In the Start Date Defined By field the user must select how the start date should be defined. There are two options:

  • System = If selected, the date is set automatically.
  • User = If selected, the buyer or supplier is allowed to set the date. A new field displays on the job seeker, work order, and work order revision pages that allow the user to enter the date the rate change matrix should start. If used, the first rate change defined in the matrix is triggered based on that start date. If no date is entered, the worker's available date or start date is used.
5The five Default components listed here must be included on all RCMs. However, the default components are actually created with the RCM Component admin object before creating the RCM. Even before creating the RCM Components, the appropriate data type custom lookups or Rate Change Matrix Rule must be created before adding the default components and consequently adding on an RCM.
6The Buyer Defined area would list any additional custom components added by the buyer. The Buyer Defined Components must have been created in the Rate Change Matrix Component admin object.

Summary

A Rate Change Matrix (RCM) is a tool that helps organizations define and automate changes to worker rates or fees based on pre-defined rules and time frames.

Key Points:

  • Job Posting Template Configuration: Enables RCM functionality and specifies the type and frequency of rate changes.
  • Rate Change Frequency: Determines when rate changes occur, either by schedule or effective date.
  • Tenure Policy Information: Uses tenure policy to define start dates or effective dates for rate changes.
  • RCM Components: Includes default and buyer-defined components, requiring pre-configuration of custom lookups and rules.

Learning

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