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Administrator Guide
Last Updated: 2026-06-12
Set Up Adjustments to Compensation Steps

Set Up Adjustments to Compensation Steps

  • Configure the
    Set Up Compensation Step Adjustment
     business process to meet your organization's needs.
  • Create compensation steps.
  • Define reasons for the
    Request Compensation Change
     event using the
    Maintain Event Categories and Reasons
     task.
You can make adjustments to compensation steps associated with a compensation grade. Workday automatically adjusts the amount for all active employees with those steps. When workers are on a leave type that labels them as inactive, Workday doesn't adjust their amounts.
  1. Access the
    Set Up Compensation Step Adjustment
     task.
  2. Select the compensation grade.
    If the grade you want to adjust already has an adjustment in progress, the grade won't be available for selection.
  3. Select the allowed actions for
    Employees using Default
     and
    Employees using Override
    .
    Option Description
    Adjust to New Defaults
    Applicable to
    Employees using Default
     and
    Employees using Override
    .
    Workday sets the assigned value to the new default.
    Adjust by Same Amounts
    Applicable to
    Employees using Override
    .
    Workday calculates the difference between the old default and the new default. Workday adjusts the employee's assigned value by that same difference.
    For example, the old default was 500 and the new default is 600, which equals a difference of 100. The employee's override amount was 700. The adjustment to the employee's assigned value would be 700 + 100 = 800.
  4. In the
    Grade Steps
     tab, enter the
    New Amount
     for the step that replaces the
    Old Amount
    .
  5. In the
    Grade Profile Steps
     tab, enter the
    New Amount
     for the step that replaces the
    Old Amount
    .
If you included a review step in the business process definitions, the reviewer completes the same steps and either approves, denies, or sends back the request to the proposer.
Once approved, the process:
  • Updates the compensation grade steps with the new defaults so that future grade assignments have the new values.
  • Creates compensation events with new values for each impacted employee.
To correct a future dated compensation event, correct or rescind the event and then reprocess it after you run the adjustment process.