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Administrator Guide
Last Updated: 2024-09-20
Create Compensation Grade Steps

Create Compensation Grade Steps

  • Create compensation grades.
  • Security:
    Set Up: Compensation Steps
     domain in the Core Compensation functional area.
A step is a specific point in a compensation grade or grade profile salary range associated with an interval, period, and optionally a step progression rule. Steps, like compensation plans, assign a specific monetary amount to a worker.
If you assign a grade profile to a worker's compensation package, Workday uses the steps on the grade profile, not the steps on the grade.
  1. Access the
    Maintain Compensation Steps
     task.
  2. Select the
    Assign 1st Step During Compensation Proposal
     check box to assign the first compensation step to workers associated with their grade or grade profile when hired.
    If selected, Workday assigns the first compensation step when all these conditions are true:
    • The worker has an eligible compensation grade.
    • The grade has compensation steps.
    • The worker either doesn't have a step assigned or doesn't have a step in the grade assigned.
  3. In the
    Grade Profile Steps
     tab, consider:
    Option Description
    Salary Pay Plan
    Select the salary or hourly plan you want to associate with these steps.
    Allow Override
    Select this check box to allow the overriding of the step values in a specific worker's compensation package.
  4. In the
    Steps
     section of the
    Grade Profile Steps
     tab, consider:
    Option Description
    Inactive
    Select to mark this step as inactive. Inactive steps are skipped in automatic step progression, and can't be selected during compensation events.
    You can have duplicate inactive steps; however, only 1 step that shares a
    Name
     or
    Sequence
     value with another step can be active at a time. When you reactivate a previously inactive grade or grade profile, all associated steps with a unique
    Name
     and
    Sequence
     will reactivate. Duplicate steps will remain inactive.
    Example: when performing an annual update, some of your compensation steps must be retired. Rather than rebuilding a new grade profile to exclude the retired steps, you simply mark the step as Inactive.
    Sequence
    Identifies the step progression order for workers assigned to the grade or grade profile.
    Enter any unique and sortable character string, such as 1-2-3 or A-B-C.
    Workday sorts the sequence by character. So if you use numbers, use 01 for 1, 02 for 2, and so on. Otherwise, 11 precedes 2 and 21 precedes 3.
    Interval
     and
    Period
    Define the length of time that workers must remain in the step before progressing to the next step in the grade.
    The interval must be a positive whole number, such as
    6 Months
     or
    2 Years
     or
    13 Weeks
     or
    30 Days
    .
    (Optional) Progression Rule
    Select an eligibility rule for Workday to use to progress workers. The rule on the current step must be true for workers to progress to the next step.
    Examples: Age, length of service, job profile, or collective agreement.
    Grace Period Interval
     and
    Grace Period Type
    The number of hours or workweeks a worker can accumulate applicable time off or leave before Workday adjusts their
    Next Step Progression Target Date
    .
  5. (Optional) In the
    Grade Profile Steps
     tab, you can define a step on a profile.
    If there are no profiles associated with the selected salary pay plan, then you can't add grade profile steps.
    When a worker matches the eligibility rules on the grade profile, Workday uses the values associated with the grade profile steps, not those on the
    Grade Steps
     tab.
To view the compensation step assigned to the worker, select
Compensation
View Compensation
 as a related action off the worker.
Assign steps to employees as part of staffing transactions based on your compensation package and compensation defaulting rules.