Setting Up Salary Administration

Use the Salary page to manage efficiently the basic remuneration that employees receive.

  1. Create (or Decide on) Salary Elements

  2. Decide How To Validate Salary Entries

  3. Link the Salary Element

  4. Define a Salary Basis

  5. Review the salary components predefined as values for the Lookup Type PROPOSAL_REASON. If you want your new components to be displayed in the Salary Management folder, you must also change a view. See: Creating Salary Components

  6. Optional: If you want Oracle HRMS to calculate full-time equivalent salaries for part-time employees, set the HR: FTE Factor user profile option. For more information on the different available options, see: User Profiles

  7. Optional: configure compensation survey to enable you to compare your employees salaries with published compensation survey data specific to your industry.

    See: Compensation Surveys

  8. Optional: If you want the compensation manager to explicitly approve an employee's new salary (for example, approve only after all the HR processes such as background verification checks are complete), then set the HR: AUTO APPROVE FIRST SALARY PROPOSAL profile option to NO.

    Otherwise, set the HR: AUTO APPROVE FIRST SALARY PROPOSAL profile option to Yes or leave it blank to automatically approve an employee's new salary.

  9. If you want to record performance ratings such as Outstanding, Superior and Average, enter them in the Lookups window for the Lookup Type PERFORMANCE_RATING.

    See: Adding Lookup Types and Values

  10. Add the function "Salary Administration Approve" to the menu of responsibilities that should be able to approve salary proposals. Without this function, users can enter salary proposals but they cannot approve them.

    See: Defining Menus

  11. Assign employees to a salary basis using the Salary Information region of the Assignment window. Also assign employees to a grade, if you have associated a grade rate with the salary basis.

    See: Assigning Employees to a Salary Basis