Propose Compensation Hire
Overview
In this chapter, you will demonstrate the compensation components in action. You will examine the process of hiring a new employee and a rehire. Through the Propose Compensation for Hire subprocess, you will demonstrate defaulting behavior using eligibility rules, or through position, job requisition, or offer compensation. Most of the data will populate for you and only edits will be necessary.
Objectives
By the end of this chapter, you will be able to:
- Initiate a hire event and analyze how compensation defaults.
- Compare processing compensation for a new hire and rehire.
- Identify troubleshooting strategies for defaulting compensation.
Compensation Events
You can initiate compensation as a single event for an individual worker or as part of a staffing change (e.g., hire, transfer).
You can include the following compensation subprocesses in larger staffing events:
Compensation Subprocess | Description |
|---|---|
Propose Compensation Hire | Subprocess of the Hire , Add Additional Job , or Start International Assignment business processes. Defaults compensation components per your compensation structure. Lets you edit any compensation components during the time of hiring. |
Propose Compensation Change | Subprocess of the Change Job business process. Defaults compensation per your compensation structure and lets you edit any compensation components. You can select either the Propose Compensation Change or Propose Base Pay Change initiation steps. |
Propose Compensation Offer/Employment Agreement | Subprocess of the Offer or Employment Agreement subprocesses, which are used in the Job Application business process in Workday Recruiting. Data entered in this step automatically feeds into the Propose Compensation Hire process within the Hire business process. |
Additionally, you can manually initiate a compensation change at any time by using one of the following tasks. Both tasks are available from a worker's Related Actions > Compensation:
- Request Compensation Change: Edit any compensation plan.
- Request Grade Change: Edit the compensation grade or grade profile.
Propose Compensation Hire
The
Propose Compensation Hire
subprocess is only available for the Hire Employee
, Add Additional Job
, and Start International Assignment
business processes. When initiating these three processes, compensation is part of the process. Compensation assignment is not available as an ad hoc task.The
Propose Compensation Hire
business process uses a template-driven user interface, which provides additional configuration options. These options include instructional text within the tasks and additional security options.Compensation and the Offer Process
The
Propose Compensation Offer/Employment Agreement
subprocess is found in the Offer
business process. The compensation components in the Propose Compensation Hire
step will automatically be populated from the Propose Compensation Offer
subprocess.Eligibility Rules
One of the most misunderstood concepts of compensation is defaulting. Understanding why defaulting does or does not occur is critical to the management of your day-to-day transactions. This understanding helps you what to expect, and gives you a better ability to troubleshoot any problems. Let us start with reviewing how a hire works with compensation eligibility rules.
Based on the configuration, several things occur during a staffing transactions:
- If a worker is eligible for a package, and eligible for a plan in the package, defaulting will occur.
- If a worker is eligible for a plan that is NOT in a compensation package, defaulting will not occur, but the plan is available to select.
- If a worker is NOT eligible for a plan and the plan is in the compensation package, defaulting will NOT occur.
- If a worker is eligible for more than one compensation package or compensation grade, these components and plans will NOT default. The package, grade, and plans will be available to select, but will not default.
Generate Documents in Compensation
Workday enables you to configure document templates and generate documents as part of compensation events.
You can configure the following business processes to include a Generate Document step in the workflow:
- One-Time Payment for Referral
- Propose Compensation Change (When initiating as a step in the Change Job business process.)
- Propose Compensation Hire
- Propose Compensation Offer/Employee Agreement
- Request Compensation Change
- Request Compensation Change for Leave of Absence
- Request One-Time Payment
- Request One-Time Payment Offer/Employee Agreement
Before configuring the compensation business process, first create the necessary document templates in Workday Drive. Workday Drive is a tool that enables your team to create, store, share, and collaborate on content secured in your Workday tenant.
From Workday Drive, create a new document template. Select a document source, such as Request One-Time Payment or Propose Compensation Hire. Then, add a category and draft the document text. You can manage and insert data fields to build your document content.
Include the Generate Document step in compensation business processes. Make sure to configure the document step to use the correct template from Workday Drive.
Propose Compensation Hire for Rehire
Terminated employees can return to their organization as rehires. When a rehire occurs, some previous employment data will populate and provide guidelines. In the case of compensation, if for some reason this information is not part of their record, the system will determine other defaulting sources.
Compensation defaulting behavior may include:
Without Recruiting | With Recruiting |
|---|---|
|
|
Propose Compensation Offer/Employment Agreement
The
Offer
business process is part of Workday Recruiting and could include compensation information. The offer is typically part of recruiting efforts. Customers using both Workday Recruiting and Workday HCM applications can use the Offer step to trigger the Hire
business process work flow. Then, the Propose Compensation Hire
subprocess step will automatically populate data from the Propose Compensation Offer step of the recruiting workflow.The
Offer
step allows you to create and present the candidate with the detailed information of your employment offer.Along with offer details, it can consist of compensation information, such as:
- Base Salary
- One-Time Payments
- Stock Grants
Compensation information entered in this stage populates into Workday compensation. Eligibility rules provide defaulting values for the compensation steps. If you are negotiating terms with a candidate, you may need to make and approve several offers. You can repeat the offer step as many times as necessary. Once the offer is complete, you can generate an offer letter.
Resource:
For additional information on Workday Recruiting or on the Propose Compensation Offer/Employment Agreement process, refer to Workday Community. You can also consider enrolling in a Workday Recruiting course.