Steps: Set Up Merit Plans
Set up compensation components and grades.
Merit plans can change base pay or promote employees to another grade or job (within the managers span of control). After you create the merit plan and assign it to employees, you use the compensation review process to implement proposed pay changes. These changes can rely on an optional compensation matrix.
- (Optional) Steps: Create a Compensation Matrix.If you want guidelines for minimum and maximum amounts when giving merit awards, you can create a compensation matrix.
- Create or update the time proration rule you intend to use in the plan.
- (Optional) Create Compensation Rounding Rules.You can associate rounding rules with allowance, salary, merit, bonus, or stock plans, or with compensation bases managed by a compensation basis total.Security:Set Up: Merit and Bonusdomain in the Advanced Compensation functional area.
- (Optional) Steps: Manage Compensation Basis.
You can also
Create
or Edit Compensation Packages
to add the plan to the appropriate compensation package.