Fusion Workforce Compensation
In this article we will learn about oracle fusion workforce compensation step by step. Every organization has different ways of compensating their group of workers on an ah hoc basis or periodically such as annually, half-yearly etc. These compensations are not always monetary but other forms of compensations also like stock allocation, perk etc. To compensate larger group of employees an organization need to release budget and plan the cycle well in advance. These all can be done through fusion workforce compensation plan, which we will cover in detail in this article. As stated earlier workers can also be given compensation based on their performance outside the regular cycle without releasing any budget, this form of compensation is called Individual Compensation, which we have already covered in our previous article Oracle Fusion Individual Compensation Plan Explained With Examples.[box type=”success” align=”” class=”” width=””]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.[/box]
Learn Fusion Workforce Compensation With Example
Fusion Compensation is a big module and would not be possible to cover it in a single post so I would break it up in two or more articles to give you as much as information possible. In this article we will only cover the theory and setup of prerequisite items we will need in subsequent posts to define fusion workforce compensation. To understand in and out of fusion compensation lets put the requirement first so that we know what are we trying to achieve.
Requirement : Your client wants to setup a yearly compensation plan for its entire workforce, where plan cycle will be from January to December every month. Compensation will be given only to full-time employees who have completed one year in the organization. While the compensation plan is live manager should also be able to evaluate employees performance based on the rating from 1 to 5. At the end of the cycle employees would be able to see their compensation letters on application. Need not to say higher manager will release the budget to lower managers.
Prerequisites for Fusion Workforce Compensation Plan
In this section we will setup few of the prerequisite required to define Workforce Compensation Plan. Remember few of them are not directly linked to compensation plan but its good to have their knowledge.
1. Manager hierarchy
Before you start defining workforce compensation plan for this practice try to create your own employee records and proper managerial hierarchy so that it will be easy for you to understand how the flow is moving withing compensation plan. If you wish not to create new employees you can also use the existing setup and remember their hierarchy.
2. Creating Derived Factor
As per the requirement the plan would be available only to those employees who have completed one year. So to achieve this we will need to create one derived factor based on length of service.
Navigation : Compensation » Task Panel » Common Configuration » Manager Derived Factors » Task Panel » Eligibility » Manage Derived Factors » Length of Service
To create an eligibility profile based on derived factors, please navigate to Manage Derived Factors page and click on length of service tab after that click on Create icon under Search Result and follow below steps
1. In the Name field, enter Avi Min One Year.
2. In the Unit of Measure field, select Years.
3. In the Greater than or Equal to Length of Service field, enter 1.
4. In the Period Start Date Rule field, select Date of hire.
5. In the Determination Rule field, select As of event date.
6. In the Rounding Rule field, select Round to nearest thousandth.
7. Click Save and Close to return to the Manage Derived Factors page.
8. Close the Manage Derived Factors browser tab.
3. Eligibility Profile
As the requirement is also to restrict the plan only to Full Time employees so please create an eligibility profile for full time employees as follow
Navigation : Compensation » Task Panel » Common Configuration »Manage Eligibility Profile
On the Search Results section Create menu, select Create Participant Profile to open the Create Participant Eligibility Profile page and follow below steps
1. In the Eligibility Profile Definition section Name field, enter Avi Full Time Employee.
2. In the Profile Usage field, select Compensation.
3. In the Assignment to Use field, select Specific assignment.
4. In the Eligibility Criteria section, select the Employment tab.
5. Select the Assignment Category subtab.
6. On the toolbar, click the Create button.
7. In the Sequence field, enter 1.
8. In the Full Time or Part Time field, select Full-time regular.
09. Click Save and Close to return to the Manage Eligibility Profiles page.
We need to create another eligibility profile for the derived factor we created earlier, so please follow the below steps.
1. On the Search Results section Create menu, select Create Participant Profile.
2. In the Eligibility Profile Definition section Name field, enter Avi Min One Year.
3. In the Profile Usage field, select Compensation.
4. In the Assignment to Use field, select Specific assignment.
5. In the Eligibility Criteria section, select the Derived Factors tab.
6. Select the Length of Service subtab.
7. On the toolbar, click the Create button.
8. In the Sequence field, enter 1.
9. In the Length of Service field, select Avi Min One Year.
10. Click Save and Close to return to the Manage Eligibility Profiles page.
4. Define Bonus Element
You can also create one bonus element so that if manager or HR wishes can reward additional bonus amount to any employee. you can follow the article Oracle Fusion Individual Compensation Plan Explained With Examples to see how elements are defined in fusion. Below are the steps to create
Navigation : Compensation » Task Panel » Common Configuration » Manage Elements Task Panel » Manage Payroll Process Configuration » Manage Elements
Create the Bonus Element
1. On the Search Results section toolbar, click the Create button to open the Create Element dialog box.
2. In the Legislative Data Group field, select Legislative Data Group.
3. In the Primary Classification field, select Supplemental Earnings.
4. In the Secondary Classification field, select Bonus.
5. Click Continue to open the Create Element: Basic Information page.
Enter Basic Information and Review
1. In the Name field, enter Avi Bonus.
2. In the Reporting Name field, enter Avi Bonus.
3. In the Effective Date field, enter 1/1/1951
4. For the question What is the earliest entry date for this element?, select First Standard Earning Date.
5. For the question What is the latest entry date for this element?, select Last Standard Process Date.
6. For the question Does this element recur each payroll period, or does it require explicit entry?, select Nonrecurring.
7. To accept the remaining default values, click Next, which also opens the Create Element: Additional Details page.
8. To accept the default values, click Next, which also opens the Create Element: Review page.
Review your selected options against the rule and default options to ensure everything is as you require.
9. Click Submit to open the Element Summary: Avi Bonus page. You may need to click Refresh in your browser to open the page.
Set a Maximum Amount and Open Eligibility
1. In the Element Overview section, select Amount.
2. On the Input Values:…Amount section Edit menu, select Correct.
3. In the Default Entry Values and Validation section Maximum field, enter 10,000.
4. In the Warning or Error field, select Error.
5. Click Submit.
6. To set up this element for eligibility without any criteria, in the Element Overview section, select Element Eligibility.
7. In the toolbar Actions menu, select Create Element Eligibility.
8. In the Element Eligibility section General Information subsection Element Eligibility Name field, enter Avi Bonus Open.
9. Click Submit.
10. Click Done to return to the Manage Elements page.
NOTE : You can follow Oracle Fusion Individual Compensation Plan Explained With Examples to see in detail how elements are create with screenshots and images.
5. Create Performance Rating
As you are also planing to evaluate workers performance during the workforce compensation plan, you can also define performance rating. This step is optional as you can also use the existing performance rating.
Navigation : Compensation » Task Panel » Common Configuration » Manage Profile Rating Models
This pages is self explanatory, just create a performance rating model of your choice that will look like this.
Define Fusion Workforce Compensation Plan
We have almost completed very basic elements we need to complete the workforce compensation plan. In the next article we will see how the plan is setup step by step, so please visit Demo of Fusion Workforce Compensation Plan Setup – Part2