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Workday Education
Last Updated: 2026-07-10
Overview of Workday HCM Core Concepts

Overview of Workday HCM Core Concepts

Overview

This chapter provides a high-level overview of the six core concepts of Workday HCM. The six core concepts are foundational and essential to perform staffing transactions and report on data. The six core concepts are:
  • Supervisory Organizations
  • Staffing Models
  • Job Profiles
  • Compensation
  • Security
  • Business Processes
In addition to being essential to Workday HCM, security and business processes are core concepts across all Workday applications.

Objectives

By the end of this chapter, you will be able to:
  • Describe the six core concepts of Workday HCM.
  • Explain how the core concepts function in common staffing transactions.

Core Concepts

The six core concepts essential to Workday HCM are supervisory organizations, staffing models, job profiles, compensation, security, and business processes. These concepts will equip you in setting up your Workday HCM system to effectively process HCM transactions.
Supervisory Organizations
Supervisory organizations group workers into a management hierarchy. The foundation of Workday HCM, supervisory organizations contain the jobs and positions that you hire workers into. You can also configure compensation, security, and business process workflows based on your supervisory organization structures.
Staffing Models
When setting up your supervisory organizations, you need to consider your staffing strategy and budgeting needs. Every supervisory organization is associated with a staffing model. Staffing models determine how jobs are defined and filled, provide various levels of control and flexibility over staffing, and support different staffing goals.
Job Profiles
Job profiles make up your job catalog and are the foundation of your jobs and positions. A job profile is a generic description of a job and contains all characteristics of that job, such as special skills, training, or other qualifications. Every worker in Workday must have an assigned job profile.
Compensation
The Workday compensation structure consists of compensation packages, which group together compensation grades and plans. Compensation grades provide guidance with reference to pay ranges, and compensation grade profiles allow for localization. Compensation plans provide various types of pay components such as salary, hourly, and allowance plans.
Security
The Workday security framework applies to your entire Workday application, securing all data. With configurable security, you can control what a given user can view and act on in the system.
We can divide the security framework into three components: functional areas, security policies, and security groups. Workday divides every product, such as Workday HCM and Workday Recruiting, into distinct functional areas. Workday HCM includes the following functional areas: Staffing, Core Compensation, Organizations, and Personal Data. Functional areas group together domains and business processes. Each domain and business process has a corresponding security policy, which grants access to certain security groups. A security group is a collection of system users. Membership in a security group dictates the secured items (e.g., tasks, reports, business objects) that a worker can access.
Business Processes
A business process is a set of configurable steps that completes a larger overall task, like hiring or terminating an employee. In short, a business process controls the "what," "who," and "when" necessary to accomplish a task:
  • What
    needs to happen? (e.g., tasks, actions, subprocesses)
  • Who
    needs to do what? (e.g., security groups)
  • When
    will it happen? (e.g., defined time frame, order of steps)
The business process definition specifies the steps, groups, and timing of the workflow. For example, the definition identifies the security group responsible for each step, notifies the workers in these groups, and recognizes when each step is complete so the process can progress to the next step.

Chapter Summary

This chapter provided a high-level overview of the six core concepts of Workday HCM. The six concepts are essential to properly configure in a Workday tenant before performing staffing transactions and reporting on data in Workday HCM.
To recap, the six core concepts of Workday HCM are:
  • Supervisory Organizations
  • Staffing Models
  • Job Profiles
  • Compensation
  • Security
  • Business Processes
Security and business processes are not exclusive to Workday HCM, but rather are core concepts of all Workday applications. Workday delivers the application in functional areas (e.g. Staffing and Core Compensation). Each functional area includes both domains and business processes.
Domains are collections of tasks, reports, data sources, and other items that share the same security. Customers cannot change delivered domains and the items secured within them.
Business processes are workflow steps that users need to complete for a specific type of event or transaction. Workday delivers business process types. Customers define business process definitions to meet their business requirements.
Configurable security controls what a user can view and act on in the system. Security and business processes are essential across all Workday applications.