Admins

Get familiarized with Compensation management terms and the available actions.

Event details

Base Salary

The fixed sum of money an employer pays an employee in exchange for their accomplishments. This term doesn’t consider salary benefits, bonuses, or any other possible reward from the company.

Cash Award

A type of component that can be awarded as a lump sum payment to an employee, either occasionally or periodically, usually for good performance. 

There are two types of cash awards for which recommendations can be made:

One timeBy variable plan

Recommendations made are to award payment as an amount or percentage of an employee’s annual base salary, with the payment relative to a previous period.

Comp mix

The ratio between base salary and variable pay, out of the overall OTE (On Target Earnings).

Compensation reviews

A term used to define two types of components that can be part of the employee’s contractual package.

There are two types of compensation review components for which recommendations can be made:

Base salary Variable pay

Recommendations made are to update an employee’s base salary from a defined effective date.


There are two types of cash awards for which recommendations can be made:
By component By OTE

Recommendations are made in the form of an amount or percentage of an employee’s current base salary and/or variable plan. A budget can be defined separately for each component.

Components

A term used to describe the three compensation-type recommendations that can be made in a compensation event: compensation reviews, cash awards, and equity grants.

Equity grants

A type of component that can be used to award a number of share/stock options. Recommendations are made for when to issue the suggested number of share/stock options from a defined grant date.

Event approver(s)

One or more people in the organization with permission to convert event recommendations into decisions. This is usually the CEO, CPO, or Compensation and Benefits manager.

Event description

An optional field to help Admins and other stakeholders understand the event’s purpose. The description is shown below the event name in the main comp event’s screen.

Event name

Is the label and representation of the entire event and appears in the communication emails sent during the event. It can also be the reason for employee payroll table changes when decisions are updated in the employees’ profile at the end of a compensation event.

OTE

On-target earnings (OTE) measure the total compensation or potential earnings if all targets are met.

Participants

All employees identified as relevant for a compensation event, regardless of their eligibility.

Variable pay

A type of compensation given to an employee in exchange for work accomplished and, usually, for good performance. It is usually offered in addition to an employee’s base salary and comes in various forms, such as a target bonus or commission.

Financials

The currency in which the budget for each component within the event is defined. Recommendations are made in each participant’s local currency, then converted to the event currency using the exchange rates defined when configuring a compensation event, and are recorded as spent against the budget in the event currency. Planners and Reviewers can view recommendations in either the local or event currency for each participant in the worksheet.

Talent

Benchmark

Compares one company’s job descriptions and pay ranges to similar jobs in other organizations to identify the average or market salary for each job. Benchmarking and using that data to adjust where necessary is essential in retaining staff and recruiting new talent. To learn more about our benchmarking powered by Mercer, see Download compensating benchmarking data.

Comp ratio

Compares an individual employee’s base salary, for example, to the midpoint of a given salary range.

Performance rating

Shows the last available overall rating in Bob’s Talent module. To learn more about the overall performance rating, see Getting started with Overall Performance rating. 

Positioning

Reflects the percentile to which a given pay range is compared and is based on the uploaded ranges in the benchmark template. The positioning field can range between 0% and 100%, where the bottom of the range, or below, places one in the 0th percentile, and the top of the range, or above, places one in the 100th percentile.

Worksheet notes

A visible column in the worksheet that enables the event’s Admin, Planners, and Co-planners to edit and add important notes, e.g., promotions, HR input, absences, and performance issues. Reviewers can only view this column, while Co-planners need edit permissions from the Admin.

Components

Budget

The overall annual monetary amount, in the event currency, allowed by the company for a specific event. For equity, the budget reflects a pool of units and not money.

Cash Award date

The date on which the cash award payment will occur.

Cash Award period

The start and end dates of the period for which the Cash Award will be awarded. 

Effective date

The date on which the component change will become effective.

Eligibility

A set of rules that define which participant is eligible for a component change.

Eligible Salary

The base for the cash award calculation is one time—the base salary. This base can be set either by an effective date or the average of the base and is dependent on lifecycle statuses in the award period.

On-target award

The base for the cash award calculation is by variable plan—the variable itself. This base can be set either by an effective date or the average of the base and is dependent on lifecycle statuses in the award period.

Guidelines

Set budget system recommendations for Planners using employee attributes such as level, region, department, and performance ratings. Guidelines can also help simulate multiple scenarios on which the required budget can be calculated. Components’ guidelines are set in %, while Equity’s guidelines are set in the number of units.

Proration

Allows Admins to prorate the actual Cash Award payout during a defined period and is based on lifecycle status and actual % FTE (Full Time Employee) during the selected lifecycle statuses.

Employee updates

Allow Planners to propose employee updates, like promotions and job information, from a designated column in the worksheet, using existing employee update flows.

Planners & Worksheets

Assign participants by 'reports to' hierarchy

Assign participants to Planners based on your organization’s reporting tree, meaning each planner will review their direct and indirect reports.

Assign participants by employee reference

Assign participants to Planners based on a matrix reporting structure, like HRBP or Site Manager, meaning each planner will review the employees assigned to them in the employee profile.

Co-planner

Work with Planners during the compensation event, e.g., HRBP, peer managers, and matrix managers. They can view and comment on Planners’ work and collaborate according to the permissions granted by the Admin in Step 6: Planners & Worksheets.

Planner

The main stakeholder(s) working on the worksheet. They are the first to directly evaluate and suggest compensation changes for participants in their worksheets.

Reviewer

After Planners, Reviewers will review and submit worksheets. They can propose new compensation changes and edit and comment on existing recommendations. They can also send the worksheet back to the previous planner for suggested edits. Reviewers are also Planners for their direct reports.

Status

Represents a worksheet status. To learn more, see Key stakeholders and worksheet statuses.

Org

The term used to describe all of a Reviewer’s visible participants, direct and indirect, within a compensation event.

Alerts

Error

Activated when a recommendation doesn’t align with the company policy. Planners cannot submit the worksheet until they rectify the error within the worksheet. An exclamation point within a red circle will be shown.

Warning

Activated when a recommendation doesn’t align with the company policy. Planners can still submit worksheets with warnings. An exclamation point within an orange triangle will be shown.

Notifications

Approval

Email notifications will be sent to Planners once the event is fully approved by the event’s approver(s).

Invitations

Email notifications will be sent to all Planners and Co-planners, if selected, to enter their worksheets and submit their recommendations.

Reminders

Email notifications will be sent to Planners and Reviewers that have not submitted or approved their pending worksheets.

Equity terms for admins

Exercise price

The price an employee pays the company for shares purchased when exercising options.

Grant date

The date on which the company’s board of directors approves the equity grant.

Grant status

Can be either approved by the board or pending the board’s approval.

Grant type

Can be either approved by the board or pending the board’s approval.

Last commencement date

The last available date when an employee received an equity grant.

Option expiration

The date that reflects when options can no longer be exercised.

Reason

An open text field to be used for convenience.

Vesting schedule

A preset schedule that dictates when employees can take advantage of their equity grants.

Vesting start date

The date from which the vesting schedule starts. This date can be retroactive to the Grant date.

Vesting term

The overall vesting period. Another free text field for the Admin to add important notes.

Vested

Equity is fully earned and owned outright. One can sell or otherwise dispose of them at will. If one were to leave the company, they could take them.

Unvested

Equity promised to an employee, but that has yet to be fully earned under vesting schedule terms.  So, if one were to leave, they would have to forfeit the stock.

Planners and Reviewers

Base Salary

The fixed sum of money an employer pays an employee in exchange for their accomplishments. This term doesn’t consider salary benefits, bonuses, or any other possible reward from the company.

Benchmark

Compares one company’s job descriptions and pay ranges to similar jobs in other organizations to identify the average or market salary for each job. Benchmarking and using that data to adjust where necessary is essential in retaining staff and recruiting new talent. To learn more about our benchmarking powered by Mercer, see Download compensating benchmarking data.

Budget

The overall annual monetary amount, in the event currency, allowed by the company for a specific event. For equity, the budget reflects a pool of units and not money.

Cash Award

A type of component that can be awarded as a lump sum payment to an employee, either occasionally or periodically, usually for good performance. 

There are two types of cash awards for which recommendations can be made:

One timeBy variable plan

Recommendations made are to award payment as an amount or percentage of an employee’s annual base salary, with the payment relative to a previous period.

Co-planner

Work with Planners during the compensation event, e.g., HRBP, peer managers, and matrix managers. They can view and comment on Planners’ work and collaborate according to the permissions granted by the Admin in Step 6: Planners & Worksheets.

Comp mix

The ratio between base salary and variable pay, out of the overall OTE (On Target Earnings).

Comp ratio

Compares an individual employee’s base salary, for example, to the midpoint of a given salary range.

Eligibility

A set of rules that define which participant is eligible for a component change.

Employee updates

Allow Planners to propose employee updates, like promotions and job information, from a designated column in the worksheet, using existing employee update flows.

Equity grants

A type of component that can be used to award a number of share/stock options. Recommendations are made for when to issue the suggested number of share/stock options from a defined grant date.

Error

Activated when a recommendation doesn’t align with the company policy. Planners cannot submit the worksheet until they rectify the error within the worksheet. An exclamation point within a red circle will be shown.

Event approver(s)

One or more people in the organization with permission to convert event recommendations into decisions. This is usually the CEO, CPO, or Compensation and Benefits manager.

Event currency

The currency in which the budget for each component within the event is defined. Recommendations are made in each participant’s local currency, then converted to the event currency using the exchange rates defined when configuring a compensation event, and are recorded as spent against the budget in the event currency. Planners and reviewers can view recommendations in either the local or event currency for each participant in the worksheet.

Guidelines

Set budget system recommendations for Planners using employee attributes such as level, region, department, and performance ratings. Guidelines can also help simulate multiple scenarios on which the required budget can be calculated. Components’ guidelines are set in %, while Equity’s guidelines are set in the number of units.

Org

The term used to describe all of a Reviewer’s visible participants, direct and indirect, within a compensation event.

OTE

On-target earnings (OTE) measure the total compensation or potential earnings if all targets are met.

Participants

All employees identified as relevant for a compensation event, regardless of their eligibility.

Performance rating

Shows the last available overall rating in Bob’s Talent module. To learn more about the overall performance rating, see Getting started with Overall Performance rating. 

Planner

The main stakeholder(s) working on the worksheet. They are the first to directly evaluate and suggest compensation changes for participants in their worksheets.

Positioning

Reflects the percentile to which a given pay range is compared and is based on the uploaded ranges in the benchmark template. The positioning field can range between 0% and 100%, where the bottom of the range, or below, places one in the 0th percentile, and the top of the range, or above, places one in the 100th percentile.

Proration

Allows Admins to prorate the actual Cash Award payout during a defined period and is based on lifecycle status and actual % FTE (Full Time Employee) during the selected lifecycle statuses.

Reviewer

After Planners, Reviewers will review and submit worksheets. They can propose new compensation changes and edit and comment on existing recommendations. They can also send the worksheet back to the previous planner for suggested edits. Reviewers are also Planners for their direct reports.

Status

Represents a worksheet status. To learn more, see Key stakeholders and worksheet statuses.

Variable pay

A type of compensation given to an employee in exchange for work accomplished and, usually, for good performance. It is usually offered in addition to an employee’s base salary and comes in various forms, such as a target bonus or commission.

Warning

Activated when a recommendation doesn’t align with the company policy. Planners can still submit worksheets with warnings. An exclamation point within an orange triangle will be shown.

Worksheet notes

A visible column in the worksheet that enables the event’s Admin, Planners, and Co-planners to edit and add important notes, e.g., promotions, HR input, absences, and performance issues. Reviewers can only view this column, while Co-planners need edit permissions from the Admin.