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.

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

How to configure compensation review components:

  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 performance-based guidelines in the planner worksheet, switch on the Guidelines toggle.
    Note: this is only available if you opted to include performance rating in the worksheet.

    1. Select your Performance scale from the dropdown based on the scale used in performance reviews

    2. Input the recommended increase percentage (%) range for each rating

  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:

  1. Click on the component tile

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

  3. Select the cash award’s Bonus 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. Select who will be included in this component’s review 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 performance-based guidelines in the planner worksheet, switch on the Guidelines toggle.
    Note: this is only available if you opted to include performance rating in the worksheet.

    1. Select your Performance scale from the dropdown based on the scale used in performance reviews

    2. Input the recommended award percentage (%) range for each rating

  7. 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

  8. 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

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

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

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