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Administrator Guide
Last Updated: 2023-06-23
Steps: Configure Internal Compensation Benchmarks

Steps: Configure Internal Compensation Benchmarks

You can use data from within your own tenant to create internal compensation benchmarks.
Workday calculates the internal compensation benchmark of an employee using the 100% FTE value of each position included in the calculation. Workday includes primary or secondary positions with active employees that share the same job profile, compensation grade, and grade profile as the primary position of the employee. Workday excludes compensation basis values of zero and basis amounts for positions that aren't eligible for the selected compensation basis.
For terminated employees, Workday calculates the internal compensation benchmark based on positions that matched the terminated employee's primary position as of their last day of work.
  1. Access the
    Edit Tenant Setup - HCM
     task.
    You can enable more meaningful internal benchmarks while safeguarding sensitive employee data.
    In the
    Compensation
     section, enter a value for
    Internal Compensation Benchmark Threshold
    .
    The threshold is the number of employees in outside organizations that a manager must have access to for Workday to include them in the benchmark calculation. If the manager doesn't have access to any employee data outside of their organization, the threshold has no effect.
    Workday displays job profile data according to the configured threshold to balance the needs for meaningful information while keeping sensitive data secure. A higher threshold value ensures the security of sensitive pay information, but might result in less meaningful information. A low threshold value might display more meaningful information, but risks a manager being able to deduce the pay of specific employees in outside organizations.
    Example: When Astrid accesses the benchmark of Brendt, Workday determines access to the compensation of all employees, regardless of organization, that share Brendt's job profile, compensation grade, and grade profile.
    • If yes, Astrid can see the internal benchmark derived from all employees.
    • If no, Workday determines the number of employees not in Astrid's organization sharing the same job profile, compensation grade, and grade profile. Workday then compares that number to the threshold.
      • If the number is greater than or equal to the threshold, Astrid can see the internal benchmark derived from all employees, regardless of organization.
      • If the number is less than the threshold, Astrid can only see Brendt's internal benchmark. Brendt's internal benchmark comes from those employees Astrid already has access to and that share the same job profile, compensation grade, and grade profile.
    Security:
    Set Up: Compensation Benchmark
     in the Core Compensation functional area.
  2. Access the
    Internal Compensation Benchmark for Workers
     standard report. You can compare the current compensation assignment for the primary position to the internal benchmark on the Total Base Pay and Total Salary & Allowances compensation bases.
    You can create a custom report to display current compensation assignment for the primary position, pay range from compensation grade (profile), and internal compensation benchmark of employees.
    Security:
    Worker Data: Internal Compensation Benchmark
     in the Core Compensation functional area.