Create Time Proration Rules for Compensation Reviews

Security: Set Up: Merit and Bonus
domain in the Advanced Compensation functional area.

You can create proration rules to determine the portion of the merit or bonus target amount that employees receive in compensation review processes.

You can use proration rules on various criteria:

Compensation basis. Example: base pay changes.

Factors. Example: FTE or scorecard changes.

Time. Example: time in plan or time since a specified date.

Workday processes proration rules associated with merit or bonus plans during the compensation review process period and evaluates anything not specifically prorated on the compensation snapshot date. Exclusion criteria ignore the event that meets the rule, except in cases where other rules must evaluate the event.

Access the

Create Time Proration Rule

task.

(Optional) Select a

Leave of Absence Grace Period Table

You can use grace period tables only in compensation reviews.

You can also access the

Create Leave of Absence Grace Period Table

task.

Each grace period table must have:

Leave Type

1 or more

Location Hierarchies

Grace Period Days

Select the

Proration Criteria

you want to use to calculate the individual target amount and contribution to the award pool.

To exclude certain types of events, select

Excluded Criteria

. You can define types of

Excluded Criteria

in the

Maintain Event Categories and Reasons

task.

For rules that define the process period start date, Workday uses the most conservative criteria. Example: If you use both Time Since Hire
and Time Since Continuous Service Date
in the same rule, Workday uses the most recent criteria to set the process period start date.

For bonus plans with the compensation basis with eligible earnings override:

Prorates time and target percentage-based proration rules.

Doesn't prorate base pay changes.

FTE Changes in Period

only applies to compensation plans that have

Apply FTE%

selected. Workday evaluates other plans as of the compensation snapshot date. Combining

FTE Changes in Period

with

Base Pay Changes in Period

results in the most accurate application of the basis in the proration segments.

Rule Category	Rule	Description
Compensation Basis	Base Pay Changes in Period	Creates a segment for each of these business processes when they create a basis change during the process period: Request Compensation Change Propose Compensation Change as part of Change Job . This determines the basis to use, unless specifically excluded in the Exclusion Criteria . A base pay change might be caused by a change to FTE regardless of the use of the FTE Changes in Period rule.
Factor Change	FTE Changes in Period	Creates a segment for each of these business processes that change the FTE% during the process period: Request Compensation Change Propose Compensation Change as part of Change Job . Edit Position . For percent-based bonus plans, Workday applies the FTE% to the basis to determine the merit or bonus target. For amount-based bonus plans, Workday applies the FTE% to the target award amount the employee is eligible for. Example: You configure an amount-based bonus plan with an FTE time proration rule. Ben has an FTE change during the process period of the compensation review. Workday calculates proration segments based on Ben's FTE changes.
Factor Change	Scorecard Profile Changes in Period	Creates a segment for each of these business processes, without exclusion, and evaluates the scorecard result as of the segment end dates: Change Job Change Organization Assignment Move Workers (by Organization) Move Workers (Supervisory) Workday might prorate these scorecards: Compensation matrix modifier. Performance factor scorecard. Performance factor scorecard modifier. Plan modifier scorecard.
Factor Change	Target Changes in Period	Creates a segment for each each of these business processes when they change the employee target during the process period: Request Compensation Change Propose Compensation Change as part of Change Job . Workday applies the target to each segment.
Time	Leave of Absence	Subtracts any leave of absence taken from the process pay period. If you selected a Leave of Absence Grace Period Table , Workday subtracts the grace period from the total number of days on leave.
Time	Time in Plan	Excludes any period when the employee wasn't in the plan.
Time	Time in Position	Uses the date the employee was assigned to their position as of the beginning of the process period.
Time	Time Since...	Sets the beginning of the process period to 1 of these dates: Company Service Date . Continuous Service Date . Hire . last Base Pay change . last Merit increase .

Assign the time proration rule to merit or bonus plans. You can assign the same time proration rule to multiple plans.