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Administrator Guide
Last Updated: 2023-06-23
Create External Compensation Survey Benchmark Cycles

Create External Compensation Survey Benchmark Cycles

Security:
Set Up: Compensation Benchmark
 in the Core Compensation functional area.
You can create either a calculated or loaded external compensation survey benchmark cycle type:
  • Calculated: You configure how Workday calculates the compensation benchmark using either the
    Create Compensation Benchmark Cycle
     task or the
    Import Compensation Benchmark Configuration
     web service.
  • Loaded: You calculate benchmark data outside of Workday and load it into Workday using either the
    Create Compensation Benchmark Cycle
     task or the
    Import Compensation Benchmark Data
     web service.
For calculated external compensation survey benchmark cycles, you can configure benchmark weight, adjustment, and aging factors on a single row, provided job profiles or job families share the same configuration.
If a job profiles or job families have varying attributes, you can configure them on multiple rows.
For ease of management and review, Workday recommends that:
  • For a compensation benchmark of a job family group, job family, or job profile, keep configurations of all benchmark profiles together.
  • For a compensation benchmark profile, keep configurations of all compensation components together.
For weights and adjustments, configurations can differ for each compensation component (such as base pay or total cash target) at each location for each job profile. For annual aging factor, you can also assign a different value per compensation component per location per job profile.
  1. Access the
    Create Compensation Benchmark Cycle
     task.
  2. Select a
    Compensation Benchmark Cycle Type
    .
    Option Description
    Calculated
    Select this option to configure a benchmark cycle within Workday.
    Configure weights, adjustments, and aging factors to calculate benchmarks from survey results.
    Loaded
    Select this option if you calculate benchmark data outside of Workday.
    Configure Workday to receive the data, then load your calculated benchmark data into Workday.
  3. (Optional) Configure a
    Calculated
     benchmark cycle:
    As you complete this task, consider:
    Option Description
    Weight Method
    For calculated benchmarks, select:
    • Equal Weight Among Surveys
      : Workday weights the selected surveys equally. If a job profile matches multiple jobs in a survey, Workday divides the weight for that survey evenly among the jobs.
    • Manual Weight
      : Manually configure weight among surveys.
    • Weight by Survey Result Custom Field
      : Workday calculates the weight of each survey for each compensation component based on the relative ratio of selected custom fields.
      Example: The compensation component Base Pay for the Software Engineer 1 job profile comes from the:
      • 2021 Radford GTS survey, with 1,500 companies contributing data.
      • 2021 Mercer TRS survey with 500 companies contributing data.
      Radford has a weight of 1,500 / (1,500 + 500) = 75%. Mercer has a weight of 500 / (1,500 + 500) = 25%.
    Configuration Effective Date
    The effective date of the benchmark cycle remains in effect until a cycle with a later date becomes effective.
    Age to Date
    Workday ages compensation survey results to this date using annual aging factors.
    Job Families or Groups / Job Profiles / All Job Profiles
    Select 1 option:
    • 1 or more job family groups.
    • 1 or more job families.
    • 1 or more job profiles.
    • All job profiles.
    Benchmark Profile
    Select 1 of your benchmark profiles.
    Compensation Components / All Compensation Components
    Select 1 or more compensation components from the list or select all.
    Workday only ages components you select.
    Survey / Survey Result Set
    For
    Weights and Adjustments
    , select a compensation survey or survey result set.
    If you select a survey for this field, Workday uses the survey result set with the latest effective date from the selected survey. Some surveys release survey results multiple times per year. When you create and load a new survey result set, Workday uses data from the latest survey result set without updating benchmark cycle configuration.
    Surveys / Survey Result Sets
    For
    Annual Aging Factors
    , elect 1 or more compensation surveys or survey result sets.
    If you select a survey, Workday applies aging to all result sets in this survey. If you select a survey result set, Workday applies aging only to the selected survey result set.
    Survey Result Scope
    For
    Weights and Adjustments
    , select a scope that belongs to the vendor of the survey or survey result set and applies to the selected benchmark profile.
    Example: If the benchmark profile is
    San Francisco, CA, US
    , select the
    San Francisco Bay Area
     survey result scope.
    Survey Result Scopes / All Survey Result Scopes
    (Optional) For
    Annual Aging Factors
    , if configured, Workday applies aging only to the scope of your selected surveys or survey result sets.
    If left blank, Workday applies aging to all scopes of your selected surveys or survey result set.
    Weight Factor, %
    For
    Weights and Adjustments
    , enter a percentage. Example: 10 is 10%.
    Weight factors must total 100% for a compensation component.
    Adjustment Factor, %
    For
    Weights and Adjustments
    , enter a percentage. Example: 10 for 10%.
    Aging Factor, %
    (Optional) For
    Annual Aging Factors
    , enter a percentage. Example: 10 is 10%.
    Workday calculates the benchmark using this formula:
    sum(Cn * Wn* (1 + ADJn) * (1 + An))
    Where:
    • Cn
      : Compensation component value for the nth source of survey result data.
    • Wn
      : Weight factor for the nth source of survey result data.
    • ADJn
      : Adjustment factor for the nth source of survey result data.
    • An
      : Aging factor for the nth source of survey result data. The aging factor is proportional to the annual aging factor and is based on the duration in months between:
      • The compensation benchmark cycle age to date.
      • The survey result set effective date.
      Example:
      • The annual (12 months) aging factor is 3% (0.03).
      • The survey result set effective date is 4/1/2020 and the benchmark cycle age to date is 10/1/2021 (18 months).
      • The aging factor is: 0.03 * 18 / 12 = 0.045 (4.5%).
    Workday uses lower level configurations to override higher level configurations, in this order:
    1. Job profile.
    2. Job family.
    3. Job family group.
    4. All job profiles.
  4. (Optional) Configure a
    Loaded
     benchmark cycle for the compensation benchmark data you calculated outside of Workday.
    As you complete this task, consider:
    Option Description
    Job Profile
    Enter a job profile.
    Benchmark Profile
    For each job profile, enter a benchmark profile, a currency, and a frequency.
    Compensation Component
    For each benchmark profile, enter a compensation component.
    Percentile
    For each compensation component, enter a percentile.
    Benchmark Amount
    Enter a benchmark amount.
    After you finish your configuration here, load your calculated data using the
    Import Compensation Benchmark Data
     web service EIB.
Access:
  • Edit Compensation Benchmark Cycle
     task.
  • Review Compensation Benchmark Cycle
     report.
  • Review Compensation Benchmark Data
     report to review the calculated benchmark data for selected job family groups, job families, or job profiles.