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Fusion Workforce Compensation part 2

Fusion Workforce Compensation Plan Setup – Part3

⚡ Must Read Fusion Article : Configure and Customize Approval Rules in Oracle Fusion

Fusion Compensation

You maybe already aware that we are in the process of configuring fusion workforce compensation and have covered most of the key setup in our previous post Demo of Fusion Workforce Compensation Plan Setup – Part2. We will cover remaining setup in this article, so here we go

Note : If you are looking for training on fusion compensation or any other modules of Fusion HCM, please contact us today. We are offering online training and also offline training in Hyderabad for discounted price.

4. Configure Components

Navigation : Define Workforce Compensation Page » Expand Worksheets Task

You can create up to 5 components to represent the different types of compensations you want to reward within a plan. They can be the same type, such as salary components Merit, Cost of living or, they can be different types like Bonuses and  Stock options

We will configure most of these component one by one but not all for this exercise.

4.1. Configure Compensation Components

Navigation : Define Workforce Compensation Page » Expand Worksheets Task » Configure Compensation Components

To configure the the compensation components please click on go to task against the row “Configure Compensation Components” and follow below steps

1. In the Components section Enable Components field, select Yes.
2. On the Define Compensation Components section toolbar, click the Create button to open the Create Component dialog box.
3. In the Component Number field, select 1.
4. In the Name field, enter AP Bonus.
5. In the Display Order field, enter 1.
6. In the Local Currency Determination field, select Corporate currency.
7. In the Budget Pool field, select AP Bonus Budget.
8. Select Primary Component for Budgeting.
9. Click OK to return to the Configure Compensation Components page.

Configure Compensation Components fusion compensation

10. On the Define Compensation Components section toolbar, click the Create button to open the Create Component dialog box.
3. In the Component Number field, select 2.
4. In the Name field, enter AP Salary-Merit
5. In the Display Order field, enter 2.
6. In the Local Currency Determination field, select Corporate currency.
7. In the Budget Pool field, select AP Merit Budget.
8. Select Primary Component for Budgeting.
9. Click OK to return to the Configure Compensation Components page
10. Click Save and Close to return to the Define Workforce Compensation page.

4.2. Configure Performance Rating

Navigation : Define Workforce Compensation Page » Expand Worksheets Task » Configure Performance Rating

If you have followed the article Learn Fusion Workforce Compensation Step By Step – Part1, you may have already created performance rating to use here. Manager will use this performance rating to evaluate workers. If you consider performance rating when allocating compensation, you can use performance rating in the worksheet in the following ways :-

  • Display rating from Oracle Fusion Performance Management
  • Rate workers during a workforce compensation cycle.
  • Use both performance management rating and compensation rating.

Note: Ratings updated in Performance Management automatically update in the worksheet and vice versa.

To configure performance rating click on the go to task against row “Configure Performance Rating” and follow below steps.

1. In the Performance Ratings section Enable Performance Ratings field, select Yes.
2. In the Performance Ratings to Use group, select Use compensation performance ratings.
3. In the Compensation Performance Ratings Properties section Layout Options group select Use traditional list of values system, if not already selected.
4. In the Rating Model field select Performance Rating Model.
5. Click Save and Close to return to the Define Workforce Compensation page.

4.3. Configure Approvals

Navigation : Define Workforce Compensation Page » Expand Worksheets Task » Configure Approvals

To configure approval please click on the go to task against “Configure Approvals”. You will see following default setup. There is no need to change anything here, just click on Save and Close to return to the Define Workforce Compensation page.

Configure Approvals for fusion compensation

4.4. Configure Compensation Change Statement

Navigation : Define Workforce Compensation Page » Expand Worksheets Task » Compensation Change Statement

Compensation change statement helps managers to generate compensation statements for their workers by associating a plan with a statement group. You can make different set of statements for different plans or plan periods. You also specify statement timing and output format of the compensation statement.

To define a compensation statement click on the go to task against row “Compensation Change Statement” and follow below steps.

1. In the Compensation Change Statement section Enable Worker Statement field, select Yes.
2. Click Manage Statement Groups to open the Manage Statement Groups page.
3. On the Statement Groups section toolbar, click the Add Row button.
4. In the Name field, enter AP Compensation Statements.
5. In the AP Compensation Statements: Templates section Template field, select Annual Compensation Plan Statement.rtf.
6. In the Display Name field, enter AP Compensation Change Letter.
7. Click Save and Close to return to the Configure Compensation Change Statements page.
8. In the Statement Group field, search for and select AP Compensation Statements.
9. In the Statement Generation Timing field, select Any worker in any status.
10. In the Output Format field, select PDF.
11. Click Save and Close to return to the Define Workforce Compensation page.

Configure Compensation Change Statement

4.5. Configure Worksheet Display

Navigation : Define Workforce Compensation Page » Expand Worksheets Task » Configure Worksheet Display

Using Worksheet Display task you can configure how information will appear on worksheet. The worksheet consists of ten tabs of six different tab types. You will need to configure each tab separately. You can also import entire worksheet display from another plan.

Following are the different  Worksheet Display Tab Types

  • Compensation
  • Approvals
  • Communicate
  • Performance
  • Promotion
  • Detail Table Only

To configure worksheet display click on the go to task icon against the row “Configure Worksheet Display” and follow below steps

4.5.1 Enable and Configure Compensation Type Tab

1. In the Worksheet Page Tabs section first row, select Enable.
2. In the Tab Display Name field, enter Compensate.
3. In the Display Order field, enter 1.
4. In the Tab Type field, select Compensation.
5. Click the Configure Tab Layout button to open the Configure Worksheet Page Layout page.
6. Select the Detail Table tab.
7. Expand Component 1 (AP Bonus).
8. In the Compensation Amount – Component 1 row, change the Display Name to Bonus Amount.
9. In the Compensation Amount – Component 1 row, Properties column, click the Configure Column Properties button to open the Configure Column Properties: Bonus Amount – dialog box.
10. Click the Element Mapping tab.
11. In the Post as Salary field, select No.
12. On the toolbar, click the Add Row button.
13. In the Payroll Element field, enter AVI Bonus – This element you must have created as part of the prerequisites explained in the article Learn Fusion Workforce Compensation Step By Step – Part1
14. In the Input Value field, enter Amount.
15. Click OK to return to the Configure Worksheet Page Layout page.
16. In the Eligible Salary – Component 1 row, change the Display Name value to Bonus Eligible Salary.
17. Expand Component 2 (AP Salary-Merit).
18. In the Compensation Amount – Component 2 row, change the Display Name to Merit Amount.
19. In the Compensation Amount – Component 2 row, Properties column, click the Configure Column Properties button to open the Configure Column Properties: Merit Amount – dialog box.
20. Click the Element Mapping tab.
21. In the Post as Salary field, select Yes.
22. Select Merit as Salary Component.
23. Click OK to return to the Configure Worksheet Page Layout page.
24. Collapse Component 1 (AP Salary-Merit).
25. Expand Performance.
26. Enable Compensation Performance Rating – Current, if not already enabled.
27. Collapse Performance.
28. Click the Actions tab.
29. Scroll down and enable the following actions, if not already enabled:

– Manage Default Worksheet Display
– Manage Delegations
– View Performance History

Configure Bonus Eligible Salary Dynamic Column
1. In the Eligible Salary – Component 1 row, click the Manage Dynamic Column Conditions and Results button to open the Manage Dynamic Column page.
2. Select Start compensation cycle.
3. On the toolbar, click the Add button.
4. In the Sequence field, enter 1.
5. In the third Condition column, click the Create or Edit Expression button to open the Edit Condition dialog box.
6. Click Build Condition.
7. In the Column field, select Hire Date.
8. In the Operation field, select Is greater than.
9. In the Fixed Date field, select Jun 1 of the previous year.
10. Click Done.
11. Click Apply to return to the Manage Dynamic Column page.
12. In front of the Column Result column, click the Create or Edit Expression button to open the Edit Column Result dialog box.
13. Select Equation.
14. Click Switch to Column.
15. In the new Column field, select Base Salary – Current.
16. Click Next.
17. In the Operation field, select Multiplied by.
18. In the Fixed Number field, enter 0.5.
19. Click Done.
20. Click Apply to return to the Manage Dynamic Column page.
21. On the toolbar, click the Add button.
22. In the Sequence field, enter 2.
23. Select Default.
24. In front of the Column Result column, click the Create or Edit Expression button to open the Edit Column Result dialog box.
25. Select Value from Another Column.
26. In the new Column field, select Base Salary – Current.
27. Click Done.
28. Click Apply to return to the Manage Dynamic Column page.

Manage Dynamic Column

29. Click Save and Close to return to the Configure Worksheet Page Layout page.

Configure Eligible Salary Dynamic Column

1. Collapse Component 1 (AP Bonus).
2. Expand Component 2 (AP Salary-Merit).
3. In the Eligible Salary – Component 2 row, click the Manage Dynamic Column Conditions and Results button to open the Manage Dynamic Column page.
4. Select Start compensation cycle.
5. On the toolbar, click the Add button.
6. In the Sequence field, enter 1.
7. Select Default.
8. In front of the Column Result column, click the Create or Edit Expression button to open the Edit Column Result dialog box.
9. Select Value from another column.
10. In the new Column field, select Base Salary – Current.
11. Click Done.
12. Click Apply to return to the Manage Dynamic Column page.
13. Click Save and Close to return to the Configure Worksheet Page Layout page.
14. Click Save and Close to return to the Configure Worksheet Display page.

4.5.2 Enable and Configure Approval Type Tab

1. In the Worksheet Page Tabs section second row, select Enable.
2. In the Tab Display Name field, enter Approve.
3. In the Display Order field, enter 2.
4. In the Tab Type field, select Approvals.
5. Click the Configure button to open the Configure Worksheet Page Layout page.
6. Select the Approvals Subtabs tab.
7. Expand Performance.
8. Enable Compensation Performance Rating.
9. Select the Worker Details Columns tab.
10. Expand Performance.
11. Enable Compensation Performance Rating.
12. Click Save and Close to return to the Configure Worksheet Display page.

4.5.2 Enable and Configure Promotions Type Tab

1. In the Worksheet Page Tabs section third row, select Enable.
2. In the Tab Display Name field, enter Promote.
3. In the Display Order field, enter 3.
4. In the Tab Type field, select Promotions.
5. Click the Configure button to open the Configure Worksheet Page Layout page.
6. Select the Detail Table tab.
7. Expand Promotions.
8. Enable Promotion Effective Date.
9. Select the Summary Columns tab
10. In the Summary Subtabs section, enable By Compensation Performance Rating.
11. In the Display Options section (Scroll down to see on page) Default Display Order field, select Alphabetically.
12. In the Display Options section Graph Bar Color field, select Blue.
13. Click Save and Close to return to the Configure Worksheet Display page.

4.5.3 Enable and Configure Communication Type Tab

1. In the Worksheet Page Tabs section fourth row, select Enable.
2. In the Tab Display Name field, enter Communicate.
3. In the Display Order field, enter 4.
4. In the Tab Type field, select Communications.
5. Click the Configure button to open the Configure Worksheet Page Layout page.
6. In the Columns section, enable Manager Worksheet Approved.
7. Enable Processing Status.
8. Click Save and Close to return to the Configure Worksheet Display page.
9. Click Save and Close to return to the Define Workforce Compensation page.

At this point of time we have configured four Tab Types as shown in the image below.

Fusion Compensation setup

4.6. Configure Default Worksheet Display

Navigation : Define Workforce Compensation Page » Expand Worksheets Task » Configure Default Worksheet Display

To configure default worksheet display please click on go to task against the row “Configure Default Worksheet Display” and follow below steps

1. In the Team Filter field, select All Workers.
2. In the Frozen Columns field, select First Column.
3. Click Save and Close to return to the Define Workforce Compensation page for XX Annual
Compensation Plan.

Fusion Compensation setup

4.7. Configure Alerts

Navigation : Define Workforce Compensation Page » Expand Worksheets Task » Configure Alerts

When manager is working on his team’s worksheet he can be alerted if there is any change in his salary or if the new proposed salary is out side the grade range or high salary range. We setup such alerts using Configure Alerts task. In this example we will see is an employees salary has changed in HR.

To configure alerts, please click on go to task against the row “Configure Alerts” and follow below steps:-

1. In the Predefined Alerts subsection, enable Salary changed in HR.
2. In the Salary changed in HR row Type field, select Alert.
3. Click Save and Close to return to the Define Workforce Compensation page for AP Annual Compensation Plan.

Configure alerts in fusion compensation

5. Models and Reports

Navigation : Define Workforce Compensation Page » Expand Models and Reports Task

Modeling enables managers to automatically allocate compensation to workers who meet certain criteria. We can configure modeling for the current plan on the configure modeling page. We can also disable modeling for all plans on the global setting page. We can enable modeling for Managers and Administrators or only for Administrators or we can also disable it altogether.

If modeling is enabled for managers you can decide if they can:
•Create their own models
•Only use models created by compensation professionals

You can decide how the model creator can share the model:
•Restrict the model to only the person who created the model.
•Allow the model to be shared with all managers.
•Allow the manager to share the model only with direct reporting managers.

The model can be used to change:
•Budget amounts
•Target amounts
•Actual compensation amounts
•Or, a mix of the choices

In this practice, you disable model sharing with direct reports. Also, enable the bring to n percentage of target range allocation method, disable the allocation methods that allow you to bring values up to a certain compa-ratio and increase the percentage points in compa-ratio.

5.1. Configure Modeling

Navigation : Define Workforce Compensation Page » Expand Models and Reports Task » Configure Modeling

To configure a model please click on the go to task against the row “Configure Modeling” and follow below steps

1. In the Model Sharing for Managers section, clear the Share the model with creator’s direct reports option.
2. In the Allocation Methods section line 4, Bring to n percentile in target range row, AP Bonus, select Enable.
3. In the line 10, Bring up to compa-ratio n row, AP Bonus column clear Enable.
4. In the line 11, Increase n percentage points in compa-ratio row, AP Bonus column, clear Enable.
5. Click Save and Close to return to the Define Workforce Compensation page.

Modeling and report in fusion compensation

5.2. Configure Report

Navigation : Define Workforce Compensation Page » Expand Models and Reports Task » Configure Reports

Reports are a set of analytics for managers to use when allocating compensation. Some reports are already enabled. You can select and deselect the reports.

For this exercise , you enable the allocation by managers report by clicking on go to task against row “Configure Reports” and follow below steps

1. In the Delivered Reports section, scroll down and, under Distribution Analysis, enable Allocations by Manager.
2. Click Save and Close to return to the Define Workforce Compensation page.

5.3. Configure Report Dimensions

Navigation : Define Workforce Compensation Page » Expand Models and Reports Task » Configure Report Dimensions

Report dimensions are attributes used to group data in reports or as criteria when building models. In this practice, you enable the current compensation target report dimension and change the years employed range increment.

To configure the report dimensions click on the go to task against row “Configure Report Dimensions” and follow below steps

1. In the Dimensions section, scroll down and in the Display Order 260, Compensation Performance Rating- Current row, select Enable.
2. In the Range Increments section, change the Years Employed value to 5.
3. Click Save and Close to return to the Define Workforce Compensation page for AP Annual Compensation Plan.

6. Validation and Processing

Navigation : Define Workforce Compensation Page » Expand Validation and Processing » Validate Plan and Start Compensation Cycle

We have completed the setup of compensation plan, before we launch the plan its time to validate the plan. To do so, please click on the go to task against row “Validate Plan and Start Compensation Cycle” and follow below steps.

1. Click Validate to open the Validation Results: AP Annual Compensation Plan dialog box.
Hopefully you do not receive any error or warning. If you receive any, please cross check that you have followed all the steps correctly.

2. Click Start Compensation Cycle to open the Start Compensation Cycle page.
3. In the Parameters section Cycle field, select AP 2017 Review
4. In the Population Filters section Manager Hierarchy field Select the top manager in your enterprise and remember the same. We will use this in later stage.
5. Click Submit, which causes the Confirmation dialog box to open.
Notice the Request ID.
6. Click OK to open the Monitor Processes page.
Monitor the status of your process. On the Search Results section toolbar, click the Refresh button, as required, to refresh the status.

Fusion Compensation setup

Manage Workforce Compensation

We have now completed the setup of fusion workforce compensation plan, hope you have also followed the same and completed the setup with us. We are going to close this post here, in the next post we will see how manager will evaluate workers, how budgets and models will be managed and how compensation plan is closed. Next post is available at  Fusion Workforce Compensation Plan Explained – Part 4

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