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Administrator Guide
Last Updated: 2023-06-23
Concept: Compensation Reviews

Concept: Compensation Reviews

Compensation reviews configured with approval limited to the entire hierarchy are a collaboration between process participants. Planners can complete the process for a subordinate organization on behalf of its participant. Planners can also send the process back for correction.
The Compensation Administrator or HR Partner can also review organizations and awards as a planner. The My Tasks notification completes only after all organizations submit up to the Compensation Planner level and the Planner submits.
You can configure compensation reviews to use cost centers, custom organizations, location hierarchies, and supervisory organizations.
Cost centers aren't hierarchical organizations except when grouped as a cost center hierarchy. When configuring the participation on the business process, there's 1 role that is the participant for both the organization and the organization hierarchy. The same role must exist on both organization and organization hierarchy.
Workday stores pool contributions at the individual employee level and calculates pools once at process initiation to determine pools at the organization level. Workday stores remainder amounts or adjustments at the organization level. Example: An organization has a 10,000 pool divided among 3 employees with each receiving 3,333.33. Workday stores the remaining 0.01 at the organization level.
Workday then updates values if employee contributions change due to parallel events. The employee-level contribution isn't reportable for employees removed from the process.
When you distribute or maintain pools, you can change pool amounts and apply holdbacks at any organization level.
If the grid configuration has editable targets, you can create budget pools that:
  • Deduct the spend from the merit pool.
  • Configure a separate pool based on the merit target of each employee or any configured amount.
Workday records changes to employee targets as overrides on the latest of these effective dates:
  • Merit
  • Additional adjustment
  • Promotion
As you manage impacted employees, you can:
  • Apply the original contribution.
  • Apply the new contribution.
  • Replace the original contribution for the employees that you've manually removed from the process.
Logan accesses the
Create Compensation Review Options
 task and:
  • Configures the
    Autofill / Pre-Fill Value
     section. Both
    Merit Awards
     and
    Bonus Awards
     use the compensation matrix to populate awards to the midpoint of the matching compensation matrix row.
  • Leaves the
    Approval Limited To
     prompt set to
    Entire Hierarchy
    .
Naomi manages 15 people directly and reports to Drake, who manages 2 managers and 1 direct report. Drake reports to Don, the Vice President of Manufacturing. Don has 4 subordinates.
Logan is the Compensation Administrator and HR Partner. Logan also has the Controller role with the ability to finalize the process and remove planning from the initial participants.
After Logan initiates the compensation review process, Naomi sees a notification to complete the process. She accesses the process and sees the direct reports listed in the grid configuration selected for the process. After reviewing the plans, she decides to click
Autofill
, enabling Workday to populate the award amounts. She reviews the amounts for each of her reports and submits.
Concurrently, Drake opens his notification, which displays his 2 organizations and direct report. Drake reviews the plan and spend for his entire organizational hierarchy, looking into Naomi's and Julie's organizations. He remembers that Julie is traveling, so he clicks
Complete on Behalf
 and clicks
Autofill
 to populate the awards for her people. While reviewing Naomi's group, he decides it needs work and clicks
Send Back
 for Naomi to reconsider.
Finally, Don reviews the entire process and makes a few adjustments. He reviews the bonus award for some of Naomi's employees, and drills into how Workday calculated the bonus. He clicks Jeremy's rounded bonus target to display the bonus plan modifier and rounding rule applied. Drilling down further, Don sees the discretionary targets, performance factor, and applicable scorecards. Drilling down again, Don sees that Jeremy's prorated numbers because he went from full-time to half-time over the past year. Workday displays the sum of the 2 proration segments, including the eligible earnings, and the target amount. After his subordinates have submitted and Don has corrected some awards, Don's satisfied that everything is in order and submits.
With all subordinate organizations reporting into Don have now submitted, Logan finalizes the process. Workday removes the notification for any outstanding planners who haven't submitted. After the business process completion step, Logan ensures that Workday created all of the compensation worker events accordingly.