Steps: Propose Compensation for Employees or Positions

Administrator Guide

Security:

Configure access to the domain for each plan type in both the Core Compensation and the Advanced Compensation functional areas.

Some plan definitions restrict the ability to override values. If you're using a compensation matrix, Workday can derive the plan target for the employee only after their performance review rating exists.

Your security policies define the sections that display and the changes you can make when proposing compensation. You can set up compensation plans to not allow individual overrides.

For employees managed by a compensation basis total, configure access to the Compensation Change: Compensation Basis Details
domain in the Core Compensation functional area.

Configure these business processes if you use the Workday Recruiting Offer
or Employment Agreement
business processes.

Propose Compensation Offer/Employment Agreement
.

Request One-Time Payment Offer/Employment Agreement
.

Request Stock Grant Offer/Employment Agreement
.

(Optional) Configure your tenant to not display compensation for previously terminated employees you want to rehire. See Concept: Remove Prior Compensation for Rehires.

You can propose compensation for an employee or a candidate during these business processes:

Offer

Employment Agreement

Hire

Request Compensation Change

Change Job

Add Additional Job

Start International Assignment

You can alternatively update compensation for groups of employees using Enterprise Interface Builder (EIB):

Employee Group	EIB
Existing employees	Request Compensation Change
New Hires	High Volume Event - Hire Employee

You can also assign default compensation to an approved job or position. Every employee hired into that position gets the same default compensation values.

Workday doesn't allow you to initiate a compensation change for yourself.

Access the

Maintain Event Categories and Reasons

task.

Define reasons for the Request Compensation Change
event.

(Optional) Access the

Configure Optional Fields

task.

You can hide or require most fields delivered as optional on these business processes:

Change Default Compensation
.

Propose Compensation Change (Change Job)
.

Propose Compensation Hire
.

Propose Compensation Offer/Employment Agreement
.

Request Compensation Change
.

Requisition Compensation
.

You can set the

Criteria

column to Hide For All
or hide from Security Group
for the

Guidelines – Total Base Pay Range

and

Guidelines – Primary Compensation Basis Pay Range

fields.

You can also select Not Enterable For
(read only) in the

Criteria

column for most fields delivered as optional or required.

Example: You want to display both Salary – Currency and Salary – Frequency during business processes as read only fields. You access the

Configure Optional Fields

task, select the Propose Compensation Change for Hire functional area, and for both Salary – Currency and Salary – Frequency select Not Enterable For
. During the Propose Compensation Change for Hire
process, both fields display as read only and can't be edited.

Changes made to optional fields apply to all:

Compensation plan assignments that are part of the event.

Events already in progress and all those going forward.

Any fields configured as hidden or required remain so even when the business process is used as a subprocess of another business process.

Security: Set Up: Configure Optional Fields
domain in the System functional area.

(Optional) Configure your tenant to display only relevant plan types during the Propose Compensation Change
process when used as a step in Change Job
.

You can select the

Enable Dynamic Display for Compensation Plan Sections

tenant option on the

Edit Tenant Setup - HCM

Compensation

task.

If selected, Workday displays only relevant compensation plan sections during the Propose Compensation Change
business process when used as a step on the Change Job
business process. This applies only for an internal job change or an internal hire.

See FAQ: Propose Compensation.

(Optional) Steps: Enable Machine Learning Recommendations for Change Job

If you opt in to machine learning, Workday recommends up to 5 compensation plans whenever you assign a new compensation plan to a worker in the Propose Compensation Hire,
Propose Compensation Change
and Request Compensation Change
business processes.

Example: When you add an allowance plan, Workday might suggest Car Allowance, Housing Allowance, or Meal Allowance. Workday uses machine learning to recommend compensation plans most relevant to:

You, when making the change, depending on how frequently and recently you assign plans.

The worker receiving the assignment, such as eligibility, job profile, or location.

Workday only displays plans that are active and:

The worker is eligible for, unless you have the ability to assign any plan regardless of work eligibility.

You have security permissions to add.

Access the relevant task or business process:

Use this task or process...	to...
Change Job business process.	Propose new compensation when an employee changes jobs or for promotions, demotions, or transfers. Workday recommends that Propose Compensation is either the completion step or is before the completion step.
Create Position or Edit Position business processes.	Assign default compensation to a position.
Propose Compensation button in My Tasks .	Propose compensation for a new hire.
Request Compensation Change task.	Change an existing employee's compensation.
Start International Assignment business process.	Propose new compensation when an employee starts an international assignment.

You can display the current compensation for internal candidates on the

Maintain Localization Settings

task.

Select Internal Candidate Compensation
for the

Area

Select 1 or more locations from

Allow for Countries or Regions

. Workday displays the internal candidate's current compensation only if you select their current job's primary location.

When configuring the Change Job
or Edit Position
business process definitions, consider including the Propose Compensation Change
business process as a step. If not included, Workday recommends as a best practice configuring the Automatic Compensation Change for Position Change Event
business process security policy to match that of Propose Compensation Change
.

Workday initiates the Automatic Compensation Change for Position Change Event
process when both:

The Change Job
or Edit Position
business process doesn't include the Propose Compensation Change
step.

Event transactions for either the Change Job
or Edit Position
processes result in a compensation-related change, such as location or FTE%.

Because the Automatic Compensation Change for Position Change Event
process is automatic, there's no user to apply the

Employee Visibility Date

to the event.

As you propose compensation, consider:

Option	Description
Employee Visibility Date	If configured, Workday hides updated pay-related compensation data from the employee until the date. If left blank, Workday uses the effective date. See: FAQ: Employee Visibility Date
Expected End Date	On salary, hourly, or allowance plans, the Expected End Date is an estimate. Access the Schedule Remove Compensation Plans with Expected End Date task to actually remove compensation plan assignments from employees.
Actual End Date	If displayed, the Actual End Date determines when Workday automatically removes the compensation plan assignment from the employee.
Fixed for Manage by Basis Total	Displays only when: The employee is managed by basis total. The Primary Compensation Basis (PCB) includes the compensation plan. The compensation plan allows overrides. The business process is Change Job , Hire , or Request Compensation Change . The compensation plan is: Allowance Amount Plan. Allowance Unit Plan. Bonus Amount Plan. Commission Plan. Stock Amount Plan. If selected, Workday treats the assigned amount as fixed when performing a top-down calculation on the PCB.
Guidelines	If you change the Grade Step , the Progression Start Date defaults to the effective date of the compensation change event. You can change it to a future date.

After the request is approved, the business process creates a compensation event for the employee that can be tracked in Worker History
.

If you assigned default compensation to a position, Workday uses the compensation values from the position instead of eligibility rules for staffing transactions with position events.

Workday doesn't rerun eligibility rules if you change plan assignments at the same time you're proposing compensation. Example: If you change a bonus plan, Workday doesn't run eligibility rules to update other compensation values during the same transaction.

Access the

Schedule Remove Compensation Plans with Expected End Date

task to remove compensation plan assignments. This task ignores compensation plan assignments with an

Actual End Date

To review period salary plans, use the

Period Salary Plans Manage By Compensation Basis Health

report.

Setup Considerations: Autocomplete Staffing Events

Remove Compensation Plans with Expected End Date

Steps: Set Up Offers

Steps: Set Up Employment Agreements

Hide or Require Optional Fields