Policy Type Settings Parameters
What is a Policy Type? A Policy Type represents a leave (whether paid or unpaid) that an employee may request. For each Policy Type the employee can see his balance, how many days/hours were taken, how many days are booked, how many days he accrued (when applicable) and so on.
Common Policy Types that can be set for the employees include "Holiday" ("Vacation"), "Sick", "Parental Leave", "Compassionate Leave", "Work from Home" and "Unpaid Leave".
The allowance calculations and validation of a given Policy Type will be determined by the Policy (not policy type).
Units: This is used to determine whether a given policy type is tracked in Days or Hours. The policies associated with this policy type will be subjected to the Units defined in the policy type. That means that for a Policy Type defined in Hours, each and every policy amounts will also be handled in hours (annual allowance, carry over amount, maximum balance cap and so on).
Policy Settings Parameters
What is a Policy? For every Policy Type there may be one or more policies which define the set of rules and values as to the method of calculating the allowance an employee is entitled to. A policy defines, how allowance is accrued, what are the limitation of usage, carry over and years of changes update. An employee is always assigned to a given policy (for a given policy type) at a time. Example, for a policy type called "Holiday", a given employee may be assigned to a policy called "Holiday 12 days grant", and then few months later to a new policy called "Holiday 16 days earned allowance" due to changes in his job, contract term, promotion and so on.
Note: when an employee requests time off, he requests time off for a policy type and not for a policy (the policy itself is not even visible to the employee).So as per the example above, an employee will request "Holiday", but the amount available and the validation of the request will be conducted based on the policy (for example based on a policy called "Holiday 12 days grant").
Annual Grant: This type of allowance, grants the employee the full allowance right in the beginning of the annual cycle. For example, if an employee is assigned to a 12 days holiday policy where the cycle is defined from January 1st - December 31st, then the 12 days will be given on January 1st and will be at the disposal of the employee from day one.
Keep in mind that since the full amount is given to the employee from day one , the employee can theoretically use all days, and if terminated later that year, he does not "owe" the employer any paid holiday. There is no option for the system to prompt Admin of such "abuse". Example, if employee is entitled to 12 days of holiday, he may request all 12 days already in January. If at some point later (say on February) he is terminated, there is nothing Admin can do about it.
Earned Allowance: This type of allowance is accrued along the employee's time off cycle frequency, where the annual amount is broken down to accruals. For example, a 12 days holiday policy defined as an "Earned Allowance" where the time off cycle is Monthly, will be broken down into 12 intervals (months), where for each month the employee will accrue one day. A 208 hours vacation policy defined as an "Earned Allowance", for a bi-weekly time off cycle, will be broken down to 26 period, where for each bi-weekly period, the employee will accrue 8 hours.
In addition, the accrual is prorated, that is, it is subjected to the amount of days worked in a given time off cycle and will be trimmed accordingly. Example, an employee on a monthly cycle whose hire date is on October 19th, if he is supposed to accrue 12 days of holiday per year (1 day per month), then for October he will only accrue 1 day * 19/31 days (which means that for the October accrual he will only get 0.61 days and not the full amount of 1 day). This is also applicable to termination, when the employee does not the full cycle.
Unlimited Allowance: This type of allowance does not handle balance at all. The requests the user submits are not validated according to any balance calculation.
Carryover: The ability to take days with you into the next year (or follow up yearly cycle).
Carry over expiration: For a policy where carryover remaining balance to next year is enabled, you can limit the amount of time (in months) the remaining balance is accrued before it is lost.
- Carryover expiration is set in amount of months (maximum 12 months of carryover)
- Carryover expiration is supported only when the time off cycle is set to Annual.
Maximum Balance Cap: This allows setting an upper limit to the amount of days/hours a given employee can have for a given policy. For example, if the maximum balance for Holiday is defined as 18 days and the employee current balance is 17 days. Should the employee accrue on another 2 days (next month), then only one day will be added to the employee's balance, as he may not exceed the 18 days balance cap defined.
Negative Balance: this allows defining whether an employee can get into a negative balance or not, and if getting into negative balance is allowed, define what is the limit of negative balance allowed (negative value will be defined). Example: if for a given policy, employees can get up to 5 days of negative balance, set the value of -5.
If negative balance is not allowed at all, set the value as 0.
Grant time off based on Years of Service: When the annual allowance gradually increases based on the employee's years of service (seniority), tick this checkbox, and define the annual allowance change for a given years of service. Example, for a starting annual allowance of 12 days, after 1 year balance may change to 14, after 2 years to 16 and so on.
Override Annual Balance Settings: This parameter allows Admin to override the way the policy will show annual allowance: either on an annual basis (by the end of the cycle), or as "Annual (with monthly accruals)" which will show the annual allowance "broken down" in a monthly displayed, where the total annual allowance is "accrued" based on the end of each month.
Example: for a given site, the cycle is defined as Annual (from April - March). If a given holiday policy is set to override the site annual balance settings so that it shows it as "Annual (with monthly accruals)" then the full amount (that by default is supposed to be given as of end of March), will be "accrued" progressively. If employee is supposed to get 12 days of holiday, instead of showing 12 days as of end of March, on the current cycle, on may it will show that 2 days were already accrued (for April and March).
Prorate allowance for part time employees: for hourly policies, by ticking this checkbox, the system will prorate the allowance based on the employee's work pattern with respect to the employees' %FTE. If a full time employee's annual allowance is set to 208 hours, then for an employee whose FTE% is 50%, the employee will accrue only 50% of the amount (that is 104 hours only). In addition, deducting the approved day will take into consideration the nominal day's length as defined by this employee's work pattern. So if a full day nominal length is 9 hours, and the employee's expected daily pattern for the day he requests a holiday is only 4 hours long, the request will deduct 4 hours from the balance and not 9 hours.
Time Off Cycles
What is a time off cycle? In order to be able to manage the timeline of the events associated with time off (such as accrual calculation, balance change, carry over and so on), there is a need to define a time off cycle: typically a yearly interval, which has a start and end date where policies are tracked, balances are calculated and requests are deducted from the balance. Once the cycle ends (given the employee remains an active employee) a new cycle begins and a new iteration of the above mentioned behaviour takes place.
- Currently in bob, a cycle is defined at the level of the Site. This means that all the policies a given employee is assigned to will conform to the cycle type defined in the site the employee belongs to. Example, if the time off cycle is defined as Monthly cycle, Holiday, Sick, WFM and Compassionate Leave, will all be tracked on a monthly basis (monthly cycle).
- The following time off cycles are available in bob:
How should I determine which cycle should I set up? There are several factors that will guide you as to the preferable cycle that should be set (given the limitation of setting one cycle per site):
- Legislation: if, for example, an employee is entitled for the full amount of holiday from day one then setting an Annual cycle is satisfactory. If the employee earns his allowance progressively along the year, where each period the employee accrues part of the annual allowance, a higher frequency cycle (such as Monthly, Semi-monthly and so on) is the cycle that should be set up.
- Payroll Frequency: In many cases, the time off accrual frequency should match the payroll frequency, as many payroll systems, require that the total accrued days/hours, the balance as of end of period, and total used days/hours are exported to payroll. For example, for an American customer who runs payroll on a semi-monthly basis (say on every 15th and end of month), setting a semi-monthly time off cycle makes sense. That means that for the 26 payroll cycles in a given year, there will be 26 time off cycles as well.
- Time and Attendance: another factor (that also is has to do with payroll frequency) is whether time and attendance is enabled in the site (where employees report their attendance, submit their timesheets and on payroll time the records are exported to payroll). In this case it makes sense to align the time off cycle with the time and attendance cycle defined. For more information about T&A cycles please refer to https://help.hibob.com/en/articles/1917282-understanding-t-a-settings
Time Off Activity Period Definitions
To setup a cycle and define its parameters, go to Site > Setting > Site's Cycle Definitions.
Balance Closing Frequency: this is where you set the type of cycle that will be assigned to the site (Annual, Monthly, Semi-monthly, Bi-weekly or weekly cycles)
Annual Cycle Parameters
Activity Period: this will define the annual cycle tracking from/to from the 1st day of a given month. Example, in Finland holiday cycle starts from April and ends on the following end of March. So in this scenario, set the Activity Period to Apr - Mar
Another option to set the Activity Period (found at the bottom of the drop down menu) is by the employees' anniversary date. By selecting "Starts every employee anniversary", each cycle will start on the employees's anniversary and end on the following year anniversary. For example, an employee's hire date is 10/28/2016. This means that each cycle will start on 10/28 and end on the following year on 10/27.
Closing Date Delay (days): this parameter is used to define a grace period (cut off) after the cycle ends, where the time off cycle can still be updated with time off request before it is locked and no changes can be made to this (previous cycle). The cut off time will be set based on the value entered with respect to the Activity Period. For example, for an annual cycle whose activity period is defined as Jan- Dec, setting a value of 8 means that up to the following January 8th, the previous cycle can still be updated. So for the 01/01/2019 - 12/31/2019, changes can be made until 02/08/2020.
Please note: entering 0 (zero) means that there is no grace (cut off time) and the cycle is locked automatically on the last day of the month (defined in the activity period).
Balance Displayed as of: for an annual cycle that is defined to from a given month to a given month (not based on employee's anniversary), there is an option to add more "up to date" display of the balance as of the end of current month. There are two options:
- "End of cycle" (selected by default): this will show the annual balance with respect to the annual cycle end date. For example, for an Annual cycle defined from April - March, the balance will be shown as of end of March. So for an employee who earns his 12 days of annual allowance, the balance will show 12 days as of end of March.
- "Today (with monthly accrual)": will show the balance as accumulated up to current month and not the balance (as expected to be by the end of the annual cycle). For example, for an Annual cycle defined from April - March, for an employee who earns his 12 days of annual allowance, if today it is July 15th, the balance the will be shown as of end of July. That means that the 12 days will be "accrued" on a monthly display and the employee will see (as of end of July) 4 days of holiday balance (1 day for April, May, June and July). This view provides a more accurate Year-to-date view of the balance.
Monthly Cycle Parameters
Accrual Balance Period : this parameter simply states that the accrual will be added on a monthly basis, accrued at the end of each month.
Annual Carryover and Grant date: This defines the month (first day of the month) the yearly cycle will be determined when it comes to carryover remaining balance from previous year and granting employees with annual grant (for policies whose allowance calculation is set to Annual Grant). For example, by setting August 1st, every year on August 1st, carryover of remaining balance (from previous August - July) will be conducted and if Annual Grant is given, it will be given on August 1st. The bottom line is that this parameter actually defines the activity period for a monthly cycle. So in the example above the monthly cycle has a tracking year from August - July.
Closing Date Delay (days): similar behaviour as for Annual cycle (see above), only will lock the monthly cycle X days after the end date (as defined in the Activity Period below). The closing date delay parameter is defined with respect tot the Activity Period and has nothing to do with "Accrual Balance Period".
Activity Period: This defines the monthly cycle start and end time, during which time off requests can be made, balance is adjusted and so on. For example, defining "25th -24th" means that the time of cycle will start every month on the 25th and end on the following month on the 24th (say 12/25 - 01/24).
This parameter should not be confused with "Accrual Balance Period" which only defines when the accrual will be given (which is currently set to end of month only and has nothing to with the Activity Period.
Semi-Monthly Cycle Parameters
Cycle starts on every: for a semi-monthly cycle, define the two days in the month of the two semi-monthly cycles start. For example, setting "1st & 16th" means that each month there will be a semi-monthly cycle from 1st - 15th, and another cycle from 16th - end of month. for example, on a typical February the the cycles will be 02/01 - 02/15 and 02/16 - 02/28. On a leap year, the second cycle (on February) will be 02/16 - 02/29.
Annual Carryover and Grant date: See above definition (similar behaviour to Monthly cycle).
Closing Date Delay (days): This will define the grace period when previous semi-monthly cycle can still be updated. Example, by setting the value of 5, for a semi monthly cycle which is defined from 06/16 - 06/30, changes could be made up to 07/05 and then the cycle will be locked.
Bi-weekly Cycle Parameters
First cycle starts on: This serves as the anchor date from which the system will generate bi-weekly cycles. This opens a date picker where Admin is asked to define the first bi-weekly cycle that will be tracked in the system. bob allows to define any date up to an offset of 13 days as of today. Example, if today it is January 6th, the earliest bi-weekly cycle to be defined is December 24th.
Annual Carryover and Grant date: See above definition (similar behaviour to Monthly cycle).
Closing Date Delay (days): This will define the grace period when previous bi-weekly cycle can still be updated. Example, by setting the value of 4, for a bi-weekly cycle which is defined from 12/30/2019 - 01/12/2020, changes could be made up to 01/16/2020 and then the cycle will be locked.
Weekly Cycle Parameters
Weekly cycle starts every: this defines the day of the week every weekly cycle will start. For example, setting a Wednesday means that every weekly cycle will start on Wednesday and end on the following Tuesday.
Annual Carryover and Grant date: See above definition (similar behaviour to Monthly cycle).
Closing Date Delay (days): This will define the grace period when previous Weekly cycle can still be updated. Example, by setting the value of 2, for a Weekly cycle which is defined to start every Wednesday (that ends on the following Tuesday), changes can be made up to the following Thursday.
Regardless which cycle is set, the balance can be rounded based on the following parameters:
Round Balance: This determines how balance will be rounded - "Up" or "Nearest"
- "Up" - will round the balance up to the nearest value based on the precision set (see below).
- "Nearest" - will round the balance to the nearest value based on the precision set (see below).
Example: the system is set to show up to two decimals when it comes to precision.
An employee's calculated holiday balance is 17.157 days
Rounding Up will change will round the balance to 17.16 days
Rounding to the nearest will round the balance decimal (one decimal place) will round it to 17.2 days
Precision: determines what is the rounding resolution
- 1 decimal place - a balance of 17.25 will be rounded to 17.3 (rounding Up) or 17.2 (nearest)
- 2 decimal places - a balance of 17.255 will be rounded to 17.26 (rounding up) or 17.25 (nearest)
- Half - a balance of 17.25 will be rounded to to 17.00
- Whole number - a balance of 17.255 will be rounded to 20 (rounding up) or 17 (nearest)
End User: Time Off Terminology
Days used: A number of days the employee has used from their allowance
Holiday balance: Leave available. The amount of time off the employee has remaining will only be affected by 2 exceptions:
Time Off requests: deducted from the balance
Adjustment: Administrators override the balance
Who’s out today: The number and identity of employees that are absent on a specified day, and the reason they are out
Pending requests: The time off requests that are waiting for your approval.
Report on behalf: The ability of a manager or admin to take time off on behalf of one of the employees
Adjust Time-Off: The ability to add/edit (on top of existing policy allowance) specific time for a specific employee (e.g. if someone worked at the weekend, we can give them time off in lieu).
Holiday balance: The amount of time off the employee has left
Holiday balance previous period: The amount of time off the employee has left from the previous period
Holiday balance effective date: The date the balance is effective from (if not filled, the import date will be used) DD/MM/YYYY
Holiday days used: The amount of time off already used by the employee
Sick balance: A number of sick days the employee has left
Sick balance effective date: The date the balance is effective from (if not filled, the import date will be used) DD/MM/YYYY
Sick balance previous period: Number of sick days the employee has left from the previous period
Sick days used: Number of sick days already used by the employee
Annual Allowance: this shows the employee his annual allowance entitlement. It does not mean that this is the employee's current allowance, but a note as to the policy the employee is assigned to (in terms of entitlement).
Days/Hours Accrued: Based on the policy allowance calculations, will show the amount of days/hours the employee accrued for within the given time off cycle. It will show the date the accrual was given and the timeframe (the date range) for which this accrual is applicable.
Days/Hours Booked: These are requests that were submitted for the current cycle but as of today are still in the future (although they are deducted from the current balance). Example, if the current Time Off cycle is 12/25/2019 - 01/24/2020, and today it is 01/05/2020, a request for 2 days on 01/16/2020 - 01/17/2020 will show as 2 days booked and will be deducted from the current balance.
Admin Adjustments: Anytime Admin/Manager make a manual adjustment such as Balance Adjustment or manually add days, the value that was adjusted will show.
Expected Deduction: This provides the user with information that he should better book his remaining days/hours for the given policy type or he will lose them by the end of the cycle. The value will be determined by the Carryover definitions or balance cap limitations defined in the policy setting.