In this section, you will define the effective date, eligibility rules, budget, and guidelines for each of your compensation components.

Remember, there are two categories of compensation components:

  • Compensation Reviews: these include any payments that are part of an employee’s contract, e.g. base salary or commission.

  • Cash Awards: these are payments allocated on an ad-hoc basis, e.g. an end-of-year bonus.ֿ

  • Equity grants: these are long-term share-based grants, e.g. options, RSUs, etc.

Each one has a particular setup so follow along with what's relevant to your compensation review process.

How to configure compensation review components:

Compensation reviews are typically done for contractual compensation components, e.g. base salary or on-target bonus/commission. Planners’ proposals for these components represent an increase to the existing contractual amount. They are calculated based on participants’ salaries as set in this step.

  1. Click on the component tile

  2. Enter an Effective date for when finalized compensation changes will go into effect

  3. Select who is eligible for this component’s review by choosing between:

    1. All participants
      Note: this list includes all of the participants selected in Details

    2. Select by condition to add eligibility rules that will apply to the pre-selected participants list

      1. Click the Edit button

      2. To add a new condition, click + Add condition and select the desired values in each of the dropdowns from left to right

      3. Repeat to add more conditions

      4. Click Apply
        Note: All conditions selected must be met for a person to be included

    3. Select by name to choose specific people from those selected in Details

      1. Scroll or search for the employee(s) that you’d like to include and tick the box to their left

      2. Click Select

  4. To include guidelines for planners as they work on their worksheet, switch on the Guidelines toggle.

    1. Press the + Add attributes button. An attributes selector popup will appear

    2. Click on the top dropdown in the popup to select an attribute, derived from the employee list fields in bob, e.g. Performance scores, Sites, etc.
      Tip: hover over an attribute to see the list items it contains, e.g. Site will show you all of the sites in your organization

    3. Repeat as needed

    4. Rearrange the order of attributes columns in the table by clicking + Edit attributes. The uppermost attribute will appear on the left end of the table, and the bottom attribute will appear to the left of the Recommended range (%) column

    5. Input the recommended increase percentage (%) range for each rating in the Recommended range (%) column

  5. Enter the event’s overall Budget in one of two ways:

    1. Enter the given budget directly into the Budget field, or

    2. Calculate based on a percent increase that will apply to all eligible employees

      1. Click Calculate by Percentage

      2. Enter the percent increase amount in the % field. This will produce an automatic calculation of the required budget using a bottom-up calculation derived from the Participants’ current base salary.
        Note: Treat this as a general budgeting assumption. Planners may still propose a higher or lower percent increase per employee as they assess Participants’ compensation during the compensation event

      3. Click Apply

  6. Continue you on set up any cash awards in your compensation event as per the instructions below, or if you're done, click on the Next button at the bottom right of the page when you’re done

How to configure cash award components:

Cash award components are payments allocated on an ad-hoc basis, e.g. an end of year bonus, and are calculated based on participants’ salaries as set in this step.

  1. Click on the cash award component tile

  2. Enter an Award date for when finalized compensation changes will go into effect

  3. Select the cash award’s Period’s Start date and End date using the calendar to define the period for which the cash award will be awarded, e.g. an end of year bonus being reviewed in 2021 may be associated with Jan 1, 2020 to Dec 31, 2020

  4. Define the base salary that will be used for the cash award amount calculation in the eligible salary section using one of two options.
    Note: the ability to select between these two options is only available if you define a period for this component. Otherwise, “By effective date” will be automatically selected.

    1. By effective date: indicating a singular point in time. The award amount will be calculated based on base salary that was effective in that point in time

    2. Average salary in period: indicating the calculation of the weighted average base salary during the award period in the selected lifecycle statuses. e.g. if an annual bonus is calculated for a person whose salary was $60,000 in the first half of the year and went up to $62,000 in the second half of the year, the eligible salary for bonus calculations will be $61,000 if they had worked the full year.

      1. To include lifecycle statuses included in the bonus period, click on the Lifecycle status dropdown
        Note: the “Employed” lifecycle status is selected by default

        1. Click on the lifecycles you wish to include

        2. Click Apply

  5. Select who will be eligible for a cash award by choosing between:

    1. All participants
      Note: this list includes all of the participants selected in Details

  6. Select by condition to add eligibility rules that will apply to the pre-selected participants list

    1. Click the Edit button

    2. To add a new condition, click + Add condition and select the desired values in each of the dropdowns from left to right

    3. Repeat to add more conditions

    4. Click Apply
      Note: All conditions selected must be met for a person to be included

    5. Select by name to choose specific people from those selected in Details

      1. Scroll or search for the employee(s) that you’d like to include and tick the box to their left

      2. Click Select

  7. To include guidelines for planners as they work on their worksheet, switch on the Guidelines toggle.

    1. Press the + Add attributes button. An attributes selector popup will appear

    2. Click on the top dropdown in the popup to select an attribute, derived from the employee list fields in bob, e.g. Performance scores, Sites, etc.
      Tip: hover over an attribute to see the list items it contains, e.g. Site will show you all of the sites in your organization

    3. Repeat as needed

    4. Rearrange the order of attributes columns in the table by clicking + Edit attributes. The uppermost attribute will appear on the left end of the table, and the bottom attribute will appear to the left of the Recommended range (%) column

    5. Input the recommended increase percentage (%) range for each rating in the Recommended range (%) column

  8. Set Proration rules to define the percentage of the cash award period for which the final Cash award will be paid
    Note: this is only available if you define a cash award period for this component.

    1. Switch the Prorate by lifecycle toggle on to prorate proposed cash awards according to people’s lifecycle status throughout the selected Cash award period, e.g. if only the “Employed” lifecycle status is selected, a person who started working in the middle of the Cash award period will receive a payout that is 50% of the cash award amount proposed by the planner; whereas if both “Employed” and “Parental leave” lifecycle statuses are selected, a person who had joined a company prior to when the Cash award period started and had gone on parental leave in the middle of the Cash award period, will receive 100% of the cash award amount proposed by the planner.
      Note: the “Employed” status is selected by default.

    2. Select any lifecycle statuses for which you would like the final cash award to be paid Switch the Prorate by FTE toggle on if you’d like the cash award payout to be prorated also based on people’s FTE percentage throughout the selected lifecycle statuses, e.g. an employee who had worked at 50% FTE in the first half of the cash award period and full time in the second half of the cash award period will receive 75% of the cash award amount proposed by the planner

  9. Enter the overall Budget in one of two ways:

    1. Enter the given budget directly into the Budget field, or

    2. Calculate based on a percent increase that will apply to all eligible employees

      1. Click Calculate by Percentage

      2. Enter the percent increase amount in the % field. This will produce an automatic calculation of the required budget using a bottom-up calculation derived from the Participants’ current base salary.
        Note: Treat this as a general budgeting assumption. Planners may still propose higher or lower percent award per employee as they assess Participants’ compensation during the compensation event

      3. Click Apply

  10. Continue you on set up any equity components in your compensation event as per the instructions below, or if you're done, click on the Next button at the bottom right of the page when you’re done

How to configure equity components:

Equity components are long-term share-based grants, e.g. options, RSUs, etc. and are budgeted in share-units.

  1. Click on the equity component tile

  2. Click Add to open a popup with any grant details pulled from bob’s Equity table in the employee fields. The information entered here will apply to any participant that will be granted equity in this event, and will appear in the participants’ employee profiles after the event has been approved.

  3. Preview a summary of the grant information by hovering over Preview info

  4. Define who will be eligible for equity grant by choosing between:

    1. All participants
      Note: this list includes all of the participants selected in Details

  5. Select by condition to add eligibility rules that will apply to the pre-selected participants list

    1. Click the Edit button

    2. To add a new condition, click + Add condition and select the desired values in each of the dropdowns from left to right

    3. Repeat to add more conditions

    4. Click Apply
      Note: All conditions selected must be met for a person to be included

    5. Select by name to choose specific people from those selected in Details

      1. Scroll or search for the employee(s) that you’d like to include and tick the box to their left

      2. Click Select

  6. To include guidelines for planners as they work on their worksheet, switch on the Guidelines toggle.

    1. Press the + Add attributes button. An attributes selector popup will appear

    2. Click on the top dropdown in the popup to select an attribute, derived from the employee list fields in bob, e.g. Performance scores, Sites, etc.
      Tip: hover over an attribute to see the list items it contains, e.g. Site will show you all of the sites in your organization

    3. Repeat as needed

    4. Rearrange the order of attributes columns in the table by clicking + Edit attributes. The uppermost attribute will appear on the left end of the table, and the bottom attribute will appear to the left of the Recommended range (%) column

    5. Input the recommended increase percentage (%) range for each rating in the Recommended range (%) column

  7. Enter the equity component’s Budget, granted in units

  8. Click on the Next button at the bottom right of the page when you’re done

Note: the equity type and quantity are mandatory employee fields in bob’s Equity table. By selecting the component type in the setup and allocating the budget during the event, these fields will also be filled in the participant’s Equity table post-event

Completed this step? Amazing! Go on and set up your Planners and worksheets.

Need more help? If you're unsure about anything please send us a message through the chat icon below.

Did this answer your question?