Concept: Company Performance Options

Workday gives you several options for funding bonuses to factor in company performance. You can apply company performance results to:

The initial bonus funding pool when you set up the compensation review process.

To use this option:

Assign the compensation scorecard to the bonus plan.

Rate company performance before initiating the compensation review process.

The updated bonus pool and spend for in-progress compensation reviews.

To use this option:

Assign the compensation scorecard to the bonus plan.

Update company performance using the

Edit Compensation Scorecard Results

task while the compensation review process is in progress.

Use the

Recalculate Pool and Awards

task.

Approved bonuses at the end of the compensation review process.

To use this option:

Add the Manage Bonus Process Funding
business process step to the organization's Initiate Compensation Review Process
business process.

Assign the company funding scorecard to the bonus plan.

Rate company performance after bonus approval (once your results are in).

You can also:

Use the compensation scorecard as a standalone way to track company performance.

Give bonuses without taking company performance into consideration.

Manually override the bonus funding percent before committing to it.

Depending on the option you select and when you rate company performance, Workday applies the performance results to bonus funding differently.

If You	And You Rate Performance before Compensation Review Process Initiation	And You Rate Performance after Compensation Review Process Approval
Apply company performance to the initial bonus funding pool only.	Workday includes company performance results when calculating the bonus funding pool.	Performance results have no impact because you haven't added the Manage Bonus Process Funding business process step to the organization's Initiate Compensation Review Process business process.
Apply funding to approved bonuses. You must add the Manage Bonus Process Funding step.	Assumes 100% funding.	Workday provides you with a step that enables you to use the new rating or to revise the funding percent.
Apply company performance to the initial bonus funding pool and apply funding to approved bonuses.	Workday includes company performance results when calculating the bonus funding pool.	Workday includes company performance results when calculating the approved bonuses.
Use the company performance scorecard only.	Performance results have no impact on bonus funding calculations. The scorecard is for tracking purposes only.	Performance results have no impact on bonus funding calculations. The scorecard is for tracking purposes only.
Award bonuses without accounting for company performance.	No impact to existing bonus processing. You aren't using compensation scorecards or the Manage Bonus Process Funding business process step.	No impact to existing bonus processing. You aren't using compensation scorecards or the Manage Bonus Process Funding business process step.