Setup Considerations: Compensation Reviews
You can use this topic to help make decisions when planning your configuration and use of compensation reviews. It explains:
- Why to set it up.
- How it fits into the rest of Workday.
- Downstream impacts and cross-product interactions.
- Security requirements and business process configurations.
- Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.
What It Is
Compensation reviews enable you to plan for and grant periodic:
- Merit increases to base pay, including promotions, allowances, and lump sum awards.
- Bonuses, including cash and deferred bonus in the form of stock.
- Stock grants as shares, options, or cash.
As part of your planning process, you can decide on compensation review milestones and set up grid configurations and named sets of initiation options.
Business Benefits
The compensation review process enables you to:
- Schedule important compensation milestones.
- Configure the organization type and roles with authority to create, edit, or review awards.
- Process staffing changes while compensation reviews are in progress.
- Manage budgets.
- Include merit, bonus, or stock plans.
- Select the organizations to include.
- Select the eligibility rules for target employee populations.
- Identify those responsible for planning, approving, and reviewing awards.
You can create a custom set of fields, or grid configurations, to guide managers during compensation reviews. You can set the fields to read-only, editable, or advanced (drill-down). You can reuse or update grid configurations in subsequent review cycles.
Use Cases
You can plan and schedule regular compensation reviews, including:
- Annual reviews that include merit, bonus, and stock awards.
- Semiannual or quarterly reviews that include bonus awards.
- Periodic reviews that include only stock awards and align with your fiscal cycle.
Questions to Consider
Questions | Considerations |
|---|---|
Do you have employees in multiple countries or managers with direct reports in other countries? | As a best practice, consider selecting the Calculate Inverse Rate on the Maintain Currency Conversion Rates task for the selected rate type and affected currencies.
If selected, Workday automatically calculates the inverse currency exchange rate between the source and target currencies. You can also select your own currency exchange rate. |
Which goals factor into bonus awards? | To calculate bonuses, you can create compensation scorecards to capture company, division, or department goals and their attainment. |
Do you offer stock to your employees? | You can configure stock plans based on amount, percent, or units. You can also grant cash in the same manner as stock.
You can use a third-party stock administration application to enable employees to manage their stock awards. |
Do you move employees between organizations or create new organizations during compensation reviews? | You can use the Maintain Compensation Review Process Employee Participation report to add or remove employees to or from in-progress compensation review processes. You can also use the Compensation Review Maintain Employee Participation operation type on the Mass Operation Management task to remove or add back previously removed employees. The Compensation Review Update New Organization Data task runs automatically on a regular schedule to detect organizations that aren't currently in a compensation review process but have eligible employees resulting from:
This task automatically adds new organizations provided they're both subordinate to the top level organization and existed before you initiated the process. Optionally, you can use this task to manually add newly detected organizations more quickly than the automatic process. As a best practice, Workday recommends that you create new organizations that you intend to add to a compensation review process before you initiate the process. |
How do you manage staffing and compensation changes that occur while the compensation reviews are in-progress? | You can configure participation rule sets to manage individual compensation, grade, or job changes while the compensation review is in-progress.
You can also:
If you don't configure participation rule sets, Workday blocks job or compensation changes for eligible employees.
|
Do you need to allow some staffing or compensation changes while compensation reviews are in progress? | You can configure compensation review options that allow Change Job or Request Compensation Change events to proceed.
You can:
|
What fields do you want managers to view during compensation reviews? | You can configure compensation review grid configuration fields as read-only, editable, and advanced (drill-down) fields. |
Is 1 compensation review grid adequate, or do you require more than 1, each targeted for a specific population? | You can set up grid configuration profiles, each targeted at users based on locale, organization, assigned roles, and other attributes. You can also set up a default grid configuration.
|
Do you use eligibility waiting periods? | You can configure eligibility waiting periods to determine whether employees are eligible for merit raises or bonuses. |
Do you prorate merit or bonus target amounts? | You can base proration rules on base pay changes, time since hire, leaves of absence, and other criteria. |
What period do you consider when prorating awards? | Workday uses the process period end date to determine:
|
When do you want employees to find out their awards? | You can set an employee visibility date to hide awards until management communicates with employees outside of Workday. |
Recommendations
Workday recommends that you create or retire organizations either before initiating a compensation review process or after the process completes.
If you use compensation matrices and include performance ratings, Workday recommends that you complete performance ratings before the process period end date of the compensation review.
Determine whether your event is large enough that you need to work with the Workday Production Readiness team.
See Workday Community: Production Readiness: Large Volume Events Best Practices. for guidelines about opening a Production Readiness case.
Requirements
No impacts.
Limitations
Workday doesn't support intersection security groups with exclusion criteria for compensation reviews.
Tenant Setup
You can configure these compensation review options on the
Edit Tenant Setup - HCM
task:
Option | Description |
|---|---|
Disable Create New Compensation Review Statement functionality for Employee on View Compensation Review Statements
| Prevents employees from creating their own compensation review statement. |
Preferred Compensation Review Employee Awards Grid Limit
| Workday limits to 500 the number of employees in the same organization hierarchy that a planner can view. |
Security
These security domains in the Advanced Compensation functional area.
Domains | Considerations |
|---|---|
Worker Data: Stock Grants
| Required to configure stock pools or issue stock grants. |
Worker Data: Propose Stock Award as Part of Compensation Review
| Required to issue stock awards during compensation reviews.
You can only configure roles on the same organization type as used in the Complete Employee Awards step. |
Worker Data: Compensation Review Statements
| Enables managers to print statements for their direct reports. |
Self-Service: Compensation Review Statement
| Enables employees to print their own statements. |
Process: Compensation Management Events
| Enables compensation administrators to initiate and finalize the process. |
Process: Compensation Review Process Controls
| Enables the Manager role to access and complete tasks. |
Process: Compensation Review Process Participant
| Enables support roles such as HR Partner and Compensation Partner to view and edit employee awards. |
Process: Compensation Review Process Reviewer
| Enables Reviewers (HR Partners and location or regional managers) to view or edit awards. |
Process: Compensation Review Rule Based Access
| Enables you to configure rule-based security for compensation administrators and others with heightened security to control employee-as-self access. |
View Compensation Review Pool Data
| Enables you to hide compensation review pool and budget wheel graphics from target populations of compensation review users. |
Business Processes
Before configuring the
Initiate Compensation Review Process
business process for all compensation reviews, consider which roles:
- Should have control over submitting employee awards. Examples: Merit Planner or Manager.
- To add to theComplete Employee Awardssubprocess: Example: Compensation Administrator.
Reporting
Reports | Considerations |
|---|---|
Compensation Review Process Search Employees (Default)
| You can use this report to give participants access to the grid configuration within the Organization Summary. |
Compensation Review Organization Search Report (Default)
| You can use this report to give reviewers access to the grid configuration within the Organization Summary. |
Compensation Review Process Status Report By Hierarchy
| Administrators can use this report to access organizations in the process and review budgets, spend, and status. |
Maintain Bonus Accrual Estimates
| You can use this report to estimate bonus costs using the same initiation parameters as a periodic compensation review. |
Integrations
Workday provides these public web services to support compensation reviews:
Web Service | Description |
|---|---|
Get Compensation Matrices
| Retrieves compensation review matrices. You can also use the Put Compensation Matrices web service. |
Get Compensation Review Participation Rule Sets
| Retrieves compensation review participation rule sets created on the Maintain Compensation Review Participation Rule Sets task.
You can also use the Put Compensation Review Participation Rule Sets |
Get Compensation Review Validation Rules
| Provides validation rules created in Workday for compensation review processes. |
Get Deferred Bonus Calculation
| Displays deferred bonus calculations that you created on the Create Deferred Bonus Calculation task. |
Get Eligibility Waiting Period
| Provides eligibility waiting periods created on the Create Compensation Eligibility Rule task or the Put Eligibility Waiting Period web service. |
Get Employee Awards
| Provides employee awards for a specific employee by position or all employees in a supervisory organization. |
Get Import Compensation Review Budget Pools
| Imports into the compensation review budget pools for single or multiple organizations, by compensation review event and organization. You can include subordinate organizations by compensation plan type. |
Import Compensation Review Budget Pools
| Updates the budget pool, holdback, and reserve information for all supervisory organizations for a specified compensation review. |
Import Eligible Earnings Override
| Adds or updates eligible earnings override information for a given employee.
Workday updates in-progress compensation reviews that:
|
Import Employee Awards
| Updates employee awards for specified employees, organization, and compensation review. |
Put Compensation Matrices
| Uploads compensation review matrices. You can also use the Get Compensation Matrices web service. |
Put Compensation Review Participation Rule Sets
| Uploads compensation review participation rule sets.
You can also use the Get Compensation Review Participation Rule Sets web service. |
Put Compensation Review Validation Rules
| You can upload new or modified validation rules for compensation review processes into Workday. |
Put Deferred Bonus Calculation
| Add or change a deferred bonus calculation. |
Put Eligibility Waiting Period
| You can upload new or modified eligibility waiting periods. |
Touchpoints and Connections
Compensation review events can touch many other areas in Workday, including the
Hire
and Change Job
business processes, Workday Payroll, Workday Expenses, and Workday Talent.Workday offers a Touchpoints Kit with resources to help you understand configuration relationships across your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.