FAQ: Compensation Defaulting

What is the difference between default compensation and compensation defaulting?: Default compensation
refers to the compensation attributes configured on a position. Workday automatically populates fields when filling a position or a job from default compensation, if it's configured on the position. Compensation defaulting
simply refers to how Workday populates compensation values.

Example: You've configured compensation for the Recruiter position but not for the Event Coordinator position. There's no offer or job requisition. When Glen hires Andrea for the Recruiter position using Hire
, Workday automatically populates compensation from the position. When Glen hires Heather for the Event Coordinator position, Workday uses eligibility rules.

This table lists stand-alone business processes and the sources from which Workday automatically populates compensation values. For some business processes, Workday searches for compensation values in multiple sources sequentially and stops when it finds values.

Task or Business Process
Source of Compensation

Create Position
and
Edit Position

Eligibility rules.
The Change Default Compensation
subprocess of the Create Position
process assigns compensation guidelines and plans to a position using eligibility rules. Workday assigns any changes made or additional compensation plans added during this subprocess to future staffing events.

Create Job Requisition

Position.
Eligibility rules.

If you use Evergreen requisitions, Workday derives compensation values from the Evergreen requisition.

Edit Job Requisition

Eligibility rules.
If you use Evergreen requisitions, Workday derives compensation values from the Evergreen requisition.

Offer
and Employment Agreement

Default compensation configured on the job requisition.
Eligibility rules.
Both 1 and 2 if you configure the
Run Eligibility Rules when there is Requisition Compensation
prompt in the
Compensation
section on the
Edit Tenant Setup - HCM
task.
If configured, Workday runs eligibility rules during the selected business processes even when default compensation exists on the job requisition.
Workday might populate the same compensation values regardless of the source. Example: Compensation values derived from the eligibility rules might be identical to those from the default compensation on the job requisition.

Workday persists individual overrides from default compensation on the job requisition if the candidate is still eligible for the plan as of the hire date on the process.

If Offer
or Employment Agreement
details, like location, change during a renegotiation, Workday runs eligibility rules even if default compensation exists on the job requisition.

The Offer
and Employment Agreement
business processes don't use default compensation on position.

Hire

For rehires only, Workday uses compensation assignments in effect before termination. However, Workday clears the the
Expected End Date
and
Actual End Date
fields from compensation plan assignments.
Offer
.
Job requisition.
Position.
Eligibility rules.

Change Job

Offer
.
Job requisition.
Position, but only when default compensation is configured on the position and you're not using the Change Job
Move option.
When using the Move option to move a worker to a new position, Workday always uses eligibility rules even if default compensation is configured on the new position.
Eligibility rules.

Request Compensation Change

No defaulting.

Request Requisition Compensation Change

No defaulting when initiated as a stand-alone business process. When included as a subprocess, the parent business process determines how compensation defaults. Example: Request Requisition Compensation Change
as subprocess of Job Requisition
.
What's the advantage of using default compensation on a position?: So that every employee who hires into that position receives the same compensation values.

Default Compensation enables the establishment of compensation guidelines, plans, and plan amounts on a position. Examples:
Position budgeting.
Tracking default compensation as budgeted or approved compensation.
Sending target or approved compensation to an external Applicant Tracking System.
To aid in giving concise compensation guidance to those proposing compensation.
What's the advantage of using default compensation for requisition compensation?: So that every applicant hired using the same job requisition receives consistent compensation values.
When does Workday default a grade or grade profile configured on a job profile?: Depending on the business process, when a grade or grade profile doesn't exist on the offer, job requisition, or position, Workday determines if the job profile has a grade or grade profile. If so, Workday populates compensation values in this order:
Grade, regardless if the eligibility rule configured on the grade applies to the employee.
Grade profile, only when an eligibility rule configured on the grade profile applies to the employee.
Why doesn't Workday default compensation in the Request Compensation Change task?: The
Request Compensation Change
task is for:
Proposing a change to existing compensation for an employee, not to initially determine it.
A single-purpose compensation change.

Workday doesn't run eligibility rules at initiation to populate plans in the
Proposed
column of the transaction. You can view the eligible plans when proposing compensation using the By Compensation Package and Rule
or By Compensation Rule
options.
What effect does a compensation package have on compensation defaulting?: Compensation packages group together grades, grade profiles, and compensation plans. If an employee is affected by an eligibility rule associated with a compensation package, the grades, grade profiles, and compensation plans associated with the compensation package determine compensation defaulting.
Why do rehired employees have current assignments?: To determine compensation for a rehired employee, Workday:
Reads compensation assignments in effect before the employee terminated and uses that for the initial compensation values on rehire.
Reads compensation values from the Offer
business process in Workday Recruiting, if they exist. If not, Workday looks for default compensation if configured on the position. Finally, if the position doesn't have default compensation, Workday uses eligibility rules.

You can configure your tenant to not reassign or display a previous employee's prior compensation when you rehire them. See Concept: Remove Prior Compensation for Rehires.
How does the Retain Basis Total option on the compensation basis affect the proposed total?: If you selected
Retain Basis Total
on the compensation basis, Workday populates the existing compensation basis total during the Propose Compensation
step of the Change Job
process. The primary compensation basis doesn't come from the job requisition. Workday then rebalances the plan assignments but keeps the compensation basis total fixed. If
Retain Basis Total
isn't selected, Workday recalculates the compensation basis total based on the changed plan assignments.
Does Workday apply compensation defaulting when Guidelines fields are changed manually?: By default, no. However, you can configure the
Enable Defaulting Based on Changes to Guidelines
on the
Edit Tenant Setup - HCM
task to enable compensation defaulting for 1 or more of these business processes:
Add Additional Job (Propose Compensation Hire)
Change Job (Propose Compensation Change)
Employment Agreement (Propose Compensation Offer/Employment Agreement)
Hire (Propose Compensation Hire)
Job Requisition (Requisition Compensation)
Job Requisition Change (Requisition Compensation)
Offer (Propose Compensation Offer/Employment Agreement)

Workday applies the compensation defaulting to compensation plan assignments on the business processes you select when you both:
Base eligibility rules on Guidelines fields.
Change any field in the Guidelines section that the eligibility rules are based on.

Task or Business Process	Source of Compensation
Create Position and Edit Position	Eligibility rules. The Change Default Compensation subprocess of the Create Position process assigns compensation guidelines and plans to a position using eligibility rules. Workday assigns any changes made or additional compensation plans added during this subprocess to future staffing events.
Create Job Requisition	Position. Eligibility rules. If you use Evergreen requisitions, Workday derives compensation values from the Evergreen requisition.
Edit Job Requisition	Eligibility rules. If you use Evergreen requisitions, Workday derives compensation values from the Evergreen requisition.
Offer and Employment Agreement	Default compensation configured on the job requisition. Eligibility rules. Both 1 and 2 if you configure the Run Eligibility Rules when there is Requisition Compensation prompt in the Compensation section on the Edit Tenant Setup - HCM task. If configured, Workday runs eligibility rules during the selected business processes even when default compensation exists on the job requisition. Workday might populate the same compensation values regardless of the source. Example: Compensation values derived from the eligibility rules might be identical to those from the default compensation on the job requisition. Workday persists individual overrides from default compensation on the job requisition if the candidate is still eligible for the plan as of the hire date on the process. If Offer or Employment Agreement details, like location, change during a renegotiation, Workday runs eligibility rules even if default compensation exists on the job requisition. The Offer and Employment Agreement business processes don't use default compensation on position.
Hire	For rehires only, Workday uses compensation assignments in effect before termination. However, Workday clears the the Expected End Date and Actual End Date fields from compensation plan assignments. Offer . Job requisition. Position. Eligibility rules.
Change Job	Offer . Job requisition. Position, but only when default compensation is configured on the position and you're not using the Change Job Move option. When using the Move option to move a worker to a new position, Workday always uses eligibility rules even if default compensation is configured on the new position. Eligibility rules.
Request Compensation Change	No defaulting.
Request Requisition Compensation Change	No defaulting when initiated as a stand-alone business process. When included as a subprocess, the parent business process determines how compensation defaults. Example: Request Requisition Compensation Change as subprocess of Job Requisition .

FAQ: Employee Visibility Date

Setup Considerations: Compensation Eligibility Rules