Define Plans:As a compensation manager, you set up individual compensation distribution (ICD) plans to define the components of an award or allowance. The line manager uses the self-service interface to assign the award - setting the start and end date of the distribution - while the back-office maintains control of the plan's administration. You can set up compensation plans so that hiring or line managers assign benefits components to applicants when they create or update offers in iRecruitment.
Follow these process steps to set up a variety of plans for ICD and iRecruitment offers, such as:
Periodic or spot bonuses
Sponsored allowances
Resettlement compensation
Severance Payments
Relocation
Sign-on bonus
New hire stock
Other periodic or recurring awards
As a compensation and benefits administrator, you define plans for individual compensation distribution and iRecruitment using the features of standard benefits or Oracle Advanced Benefits following the guidelines in these sections.
Define Plans:You set up plans for individual compensation distribution and iRecruitment by defining the characteristics of the plan and any electable options in the plan. If necessary, you can define participant eligibility profiles to limit the participants who are eligible for the plan or option.
To set up plans for self-service individual compensation distribution and iRecruitment
Define the Plan Year start and end dates for the compensation plan. Set up several plan years to account for future plan years.
Optional: define a participant eligibility profile to control eligibility for the compensation plan.
If you do not define a participant eligibility profile:
ICD finds all employees and contractors reporting to the manager eligible for the distribution.
iRecruitment finds all applicants eligible for the compensation plans defined for applicant offers.
Note: Set the participant eligibility profile status to active if you define a profile.
Set up one or more Plan Types to group the compensation plans you administer.
Required: select an Option Type of Individual Compensation Distribution to enable a manager to distribute the award or assign benefits to applicants. When you define Plan Types for iRecruitment, select Enterable Amount or Select List as the option for Self Service Display format. Currently the other self-service options do not apply for iRecruitment plans.
Optional for ICD: select a Compensation Category of Compensation for reporting purposes or for system extracts.
You can choose to set up a single plan type for all your compensation plans, or you can define multiple plan types for groupings of plans (Bonus, Allowance, Severance, and others).
Note: You should base the number of plan types you define on your reporting requirements.
See: Defining Plan Types
Required for iRecruitment: Define reporting groups to group the compensation plans for iRecruitment. Select the purpose as iRecruitment to display the plans on the Compensation page of iRecruitment.
Optional: define the options in the compensation plan.
Enter a user friendly option name to display in the self service web page.
Select the corresponding plan type of each option.
Note: Use options when there is a logical grouping of choices within a plan, such as a car allowance plan with options of BMW, Honda, and Ford. For bonus plans, severances, and allowances, set up each compensation type as a separate plan.
See: Defining Options
Define compensation plans for ICD and iRecruitment
Enter a user friendly plan name to display in the self service web page.
Select the plan type of the plan.
Set the plan status to active. You can update the status to inactive if you need to temporarily disable the plan.
Select a Plan Usage code of May Not Be In a Program.
In the Not in Program tabbed region:
Enter a sequence number that indicates the order in which the plan displays in the self service web page relative to other plans in the plan type.
Select the currency of the plan for monetary distributions. You do not enter a currency for non monetary allowances, such as cars.
Select the Activity Reference Period of the plan. For recurring awards, the activity reference period is the period the manager sees when distributing the award, for example, $100 per period.
For non recurring awards, you can select any activity reference period.
Note: For an iRecruitment plan, ensure that you select frequency specific values such as Per Month or Per Year as the Enrollment rate/frequency. As applicants are not assigned any payrolls, if you select values such as Per Pay Period no plans will be displayed to hiring managers when they create or update offers.
Link the Plan Years to the plan that you defined in Step 1.
If you defined options in Step 5, link the options to the plan.
Set the status for each option to active. You can update the status to inactive if you need to temporarily disable an option.
Link a participant eligibility profile to the plan if you limit eligibility for the plan.
For iRecruitment: Define a single life event reason with the iRecruitment type. Oracle iRecruitment uses this life event type to process compensation plans for applicants.
Define Enrollment Requirements:You use the Plan Enrollment Requirements window to control the enrollment method.
ICD only: You can also set up required certifications that the individual must provide before Oracle Payroll distributes the award.
To define enrollment requirements for ICD and iRecruitment plans
Define enrollment requirements for the plan.
Query the plan you defined in step 6 above.
Select an enrollment method of Explicit.
Check the Allows Unrestricted Enrollment check box.
Select Current, Can Keep or Choose; New, Can Choose as the Enrollment code.
For ICD Plans
If you define coverages, select a Coverage Start Date code of Enterable if you want to let the manager enter the coverage start date. The application distributes the award to Payroll following the date. If you do not want the manager to enter the start date, select any other coverage state date code.
Select a Coverage Start Date code of Event to set the start date to the system date when the manager enters the self service web page. Use this code for non-recurring awards. The application distributes the award to Payroll in the following payroll period.
Required: select a Coverage End Date code that corresponds to your Coverage Start Date code.
Activity Rate Start and End Date codes function similarly to coverage codes. Choose Enterable for recurring allowances; for non-recurring allowances, choose Event.
For iRecruitment Plans
You must define enrollment requirements by specifying coverage and rates start and end codes.
General Tab
With the General tab and the Plan tab selected, select the Coverage tabbed region.
Enter the enrollment coverage start and end dates to specify when the coverage begins and ends for participants in the plan. For example, select Event as the start date and 1 Day Before Event as the end date code.
Select the Rates tabbed region.
Enter the rates start and end date codes to specify when the activity rates start and end for participants in this plan. For example, select Event as the start date and 1 Day Before Event as the end date code.
When you set up compensation plans for iRecruitment offers, you must associate the plans with the iRecruitment life event. When a hiring manager completes the basic details of an offer and clicks Continue on the Basic Details page, the application detects that the iRecruitment life event has occurred for the applicant assignment and runs the Participation process. The Participation process evaluates the eligibility for the applicant and displays the appropriate benefit plans in the Compensation page.
Timing Tab
Define the following iRecruitment Life Event in the Life Event region of the Timing tab to allow users to make or change elections.
Select Enrollment Type as the life event.
Select iRecruitment Life Event as the life event.
Select a Coverage Start Date code of Event and select the corresponding code 1 Day Before Event as the end date code.
Select Event as the Rate Start Date and select the corresponding code 1 Day Before Event as the end date code.
Select As of Event Date as the Enrollment Period Start date code and select a Enrollment Period end date that corresponds to the Period start date such as Thirty Days After Event Date or Sixty Days After Event.
For information on compatible start and end codes, see the white paper, Oracle Applications HRMS Compatible Start & End Date Codes, Metalink Note ID: 247317.1
See: Defining Enrollment Requirements for Not in Program Plans
Optional for an ICD plan: for Advanced Benefits users, link one or more certifications to the plan if you request or require certification from the participant before you make the distribution.
Oracle HRMS supplies the certification types available with the application.
Note: If you require a certification, the application suspends the payroll distribution of the award until the participant returns the certification. A message displays to the issuing manager indicating that the distribution is suspended.
Optional for ICD: for Advanced Benefits, you can define communication types that the application generates to inform the participant of a suspended distribution.
You set up a system extract to write the applicable information from the communication type to a text file. You can then merge the data from the text file into the body of the participant communication.
Set Up Activity Rates and Coverages for the Plan:You set up activity rates to define:
The amount of a distribution (for fixed rate distributions) or to indicate that the manager enters the distribution amount when the award is assigned in the self-service web page.
Note: You can set up multiple activity rates for an ICD plan; however, you can choose only one rate to display on enrollment to the self-service user.
The amount ranges that hiring managers can assign when they create or update offers for applicants in iRecruitment
To set up activity rates for a plan
Optional: set up an activity rate for an ICD/iRecruitment plan or option in the following cases:
You do not use coverages.
You offer a monetary award and you want to distribute the amount of the award to payroll.
You create element entries for the award.
You award a non monetary gift (defined as a coverage) and you need to keep records of the taxable benefit.
You want to control the maximum amount that can be distributed for a recurring element.
Note: In order to control the maximum distribution amount, you must configure Oracle Payroll using FastFormula.
Follow these guidelines when setting up the activity rate:
Set the activity rate status to active.
Indicate if the activity rate applies to a plan or to an option in a plan.
Select any Activity Type code.
Select a Usage code of Standard Contribution/Distribution.
Select a Unit of Measure if the award is non monetary.
Note: If the Unit of Measure is monetary, do not select any unit of measure.
For ICD only: Select a rate certification type if you want to suspend the rate until the appropriate certification is received and approved.
Define the calculation method for the activity rate.
If the award is a flat amount, enter the value of the award.
If the award is not a flat amount, check the Enter Value at Enrollment check box. For recurring awards, the value the manager enters at enrollment is per the activity reference period defined for the plan.
Check the Assign on Enrollment and Display on Enrollment check boxes.
See: Defining Activity Rates for a Standard Contribution/Distribution
Note: Steps 2 - 3 do not apply to iRecruitment plans.
Optional for ICD: define a variable rate profile if the activity rate varies according to one or more factors, such as the assignment of the person to whom the manager distributes the award.
You can also use variable rate profiles to define minimum and maximum distributions, increments, and default rates.
See: Defining General Information for a Variable Rate Profile
Optional for ICD: create a taxable benefit rate for use with non monetary coverages.
You set up a taxable benefit rate for non monetary coverages like you define a standard activity rate, with the following exceptions:
Leave the Unit of Measure field blank.
Select a Calculation Method of Multiple of Coverage.
Uncheck the Enter Value at Enrollment field.
Define a multiplier where the number represents the value of one non monetary award.
Select a Coverage Operator of Multiply by.
Select a Rounding Code of Round to Nearest Hundredth.
Uncheck the Display on Enrollment check box.
Note: You may have to define your coverage first before saving this rate.
Optional for ICD and iRecruitment: create a Maximum Distribution Rate to accompany the standard rate.
You set up a Maximum Distribution Rate like you define a standard activity rate, with the following exceptions:
Select an Activity Type of Total Distribution Limit.
Leave the Unit of Measure field blank.
Leave the Recurring field blank.
Optional for ICD: define coverages for the plan if:
The award is non monetary and you do not want element entries created for the non monetary award.
The award is a non monetary gift (which is defined as a coverage) and you need to keep records of the taxable benefit.
You do not define standard activity rates.
See: Defining a Coverage Calculation
Follow these guidelines when you set up a coverage definition:
Enter a name for the coverage.
Select a coverage type.
Select a Unit of Measure if the Type is not Coverage.
On the Calculation Method Tab, select a Calculation Method of Flat Amount.
Note: If you want the user to enter the value during the enrollment check the Enter Value at Enrollment check box. Otherwise, enter the amount.
For recurring distributions, the coverage amount is per the activity reference period defined in the plan.
Note: You should set up no more than one coverage per compensation plan or option.
Configure Web Pages:To configure ICD web pages, use the Application Dictionary to configure the field labels, hints, tips, and messages that display in an ICD web page. You can also configure menu names, function names, and certain workflow attributes, see: Individual Compensation Distributions (ICD)
To configure iRecruitment offers pages, including the Compensation page, see: Setting Up Offers
Enter People for Test Purposes:You can enter sample people into the Oracle HRMS database to test your Individual Compensation Distribution plan.
Define a Manager
Using the People window, define a manager with a date of birth, social security number, and address.
Enter an Assignment for the manager.
Check the Manager check box located in the Miscellaneous tabbed region.
Select the manager's GRE in the GRE tabbed region.
Define an Employee
Using the People window, define an employee with a date of birth, social security number, and address.
Note: If you use eligibility profiles, make sure the test employee meets your eligibility requirements.
Enter an Assignment for the employee.
Select the test manager you created as the employee's supervisor on the Supervisor tabbed region.
Select the employee's GRE in the GRE tabbed region.
Create a User Name and Password for the Test Manager
As a system administrator, open the User Types window to define a user name and password for the manager you created.
Link the Manager Self Service responsibility to the user name.
Save your work and close the window.
Assign an Individual Compensation Distribution to the Employee
Using the manager's user name and password, log on to Oracle Self Service HR.
Choose the Individual Compensation menu item.
Find the Employee you created.
Assign the individual an award.
Set Up Employee Self-Service Access to ICD:You can configure ICD for employee self-service access. Use this feature if your enterprise administers charitable contribution plans, savings bond plans, or service recognition plans where you allow the employee to select from one or more awards.
Note: You set up employee self-service plans as you would other plans, using the professional user interface. However, you should include employee self-service plans in their own plan type, so that participants cannot view plans only available to managers.
To set up employee self-service access to ICD
Log in to Oracle HRMS using a System Administrator responsibility and open the Form Functions window.
Choose the Description tab.
Enter a new function name--without spaces--in the Function field.
Enter a User Function Name for this function.
Select SSWA JSP Function as the function Type.
Optional: enter a Description of the function.
Choose the Form tab.
Enter the following parameter, substituting the function name you entered in Step 3 and your plan type IDs where indicated:
pProcessName=HR_INDIVIDUAL_COMP_PRC&pItemType=HRSSA&pCalledFrom=<your new function code>&PLANTYPE=<your plan type IDs separated by commas>
Choose the Web HTML tab.
Enter the following string in the HTML Call field:
OA.jsp?akRegionCode=HR_CREATE_PROCESS_TOP_SS&akRegionApplicationId=800
Save your work.
Close the Form Functions window and open the Menus window.
Add the function you just created to the Employee Self-Service Menu.
Save your work.