You set up Compensation Workbench plans using the Total Compensation data model. The windows you use to define a Compensation Workbench plan are a subset of those windows that you use to implement and administer Standard and Advanced Benefits.

Follow this process to set up plans for Compensation Workbench. Refer to the cross-references for further details.

For information about administering Compensation Workbench plans that you have defined, see: Compensation Workbench Processing

   To set up a Compensation Workbench plan:

1. Define one life event reason for each plan.

2. Define plan years for the Compensation Workbench plan.

3. Define a plan type, selecting a compensation category.

4. Optional: define participant eligibility profiles to limit the employees who are eligible for a Compensation Workbench plan.

5. Define the Compensation Workbench plan.

6. Link the plans and eligibility.

7. Optional: define a derived compensation factor if compensation awards are based on a stored or system calculated value, such as eligible or stated salary.

8. Optional: define options.

9. Optional: define elements if you want to transfer activity rates to Oracle Payroll or to third party applications. Link the elements.

10. Optional: define variable rate profiles if an activity rate can vary according to one or more factors.

11. Define standard activity rates.

12. Optional: define or load the GL Daily Rates if you enable managers to view amounts in different currencies.

   Compensation Life Event:

Set up a life event reason.

• Enter a life event Name that corresponds to your plan. Provide a life event name that identifies the compensation type, and--if you operate globally--the legislation of the plan. A naming convention helps you to identify the life event.

• Select a life event Type of Compensation.

  Compensation Workbench life events require no additional set up.

See: Defining General Characteristics of Life Events

   Plan Years:

You use the Program/Plan Years window to set up plan years that define the year--or period within a year--during which an employee earned their compensation. You can use this amount, if, for example, you award a bonus based on a percentage of compensation earned during the period.

• Enter the plan year start and end dates. This is the year in which the employee earned the compensation.

• For compensation types that you award more than once per year (such as quarterly bonus plans)--or for which the employee earning period is less than a full year--enter a Within Year Period that represents that period.

  Select the Unit of Measure that best represents your period. For example, select Semi-Year for compensation plans administered twice yearly.

   Compensation Plan Types:

Your plan requires a compensation plan type.

Select Compensation Workbench as the Option Type.

Select a Compensation Category from the list:

See: Defining Plan Types

   Compensation Workbench Plans:

You define a Compensation Workbench plan for a group of tasks that are a single collection, available to managers at the same time, processed at same time, and use the same hierarchy and approval chain.

Typical compensation plans include salary increases linked to a yearly focal review period, scheduled bonuses, and stock option grants.

You can also define plans for promotions/job changes and performance ratings.

See: Defining a Compensation Workbench Plan

See: Setting Up a Basic Plan

See: Setting Up a Component Plan

See: Setting Up a Combination Plan

   Compensation Components:

If you itemize your compensation plan, you can define components to represent each item (Cost of Living or Merit, for example). You should attach two or more components to an itemized compensation plan.

You define components as Total Compensation options. For each option, select a plan type you defined with an Option Type of Compensation Workbench.

You can link a salary increase component to a salary administration component. Run the Compensation Workbench Post Process to update salary component values for an employee who received an award or compensation increase.

You can attach the options to a global or a local plan. A group option belongs to a group plan and you can use it for global component or global combination plans. You maintain budgets at the group option level. Options you define for a group plan display on the same worksheet within Compensation Workbench. A local option belongs to a group option or to a local plan. You can define all rates, except budget rates, at the local option level. You can also define eligibility at the local option level.

See: Defining Options

   Plan Enrollment Requirements:

Set up plan enrollment requirements to determine the availability period of Compensation Workbench in Self-Service for a plan.

You also use plan enrollment requirements to enter items such as the:

• Assigned life event date

• Plan year or within year period for the compensation plan

• Close enrollment date

• Enrollment coverage and activity rate start and end dates

• Budget and worksheet characteristics and availability periods

• Supervisor or position hierarchy to use for budgets

• Dates on which performance ratings or job changes become effective

See: Defining Enrollment Requirements for Compensation Workbench Plans

   Elements:

Use elements to transfer activity rates to Oracle Payroll or to third party applications. Elements record items such as the compensation that a line manager distributes to an employee.

If you have previously defined an element that you now want to use for a Compensation Workbench plan, you can use that element without defining a new one.

For Compensation Workbench, a typical element setup includes:

• A Primary Classification of Supplemental Earnings, for bonuses

• A Processing Type of Non-Recurring

• An Input Value of Pay Value in Units of Money

• For Stock Option plans with a unit of measure of Shares, select an element type of Information

See: Defining an Element

   Element Links:

You set up element links for Compensation Workbench plans as you would for Standard and Advanced Benefits.

See: Defining Element Links

   Variable Rate Profiles:

Variable rate profiles are optional for Compensation Workbench plans.

You can use a variable rate profile, for example, if you provide an initial recommended amount for a compensation distribution. You could vary this amount based on a manager's demographics. A line manager can override the recommended amount within the guidelines of a minimum and maximum compensation range that you define.

Variable rate profiles are also useful if you auto-issue a fixed budget to all managers and you want to vary the issued amount based on a manager's demographics.

See: Defining General Information for a Variable Rate Profile

   Standard Rates:

You set up standard activity rates to record a variety of compensation amounts, such as:

• Distribution budgets

• Worksheet budgets

• Budget reserves

• Eligible or Stated Salary

You can use rules to configure the minimum and maximum values for standard rates. The Participation Process uses these rules to dynamically calculate the minimum and maximum values. You can also use a rounding code for any Compensation Workbench standard rate.

Each standard rate uses an activity type to control many of the columns that display in Compensation Workbench. You set up different activity rates--with different activity types--depending on the kinds of values you want to record in Compensation Workbench.

If you budget or allocate for a component, you must set up activity rates for the option in plan rather than for the plan. If you have multiple components, and you check the Uses Budget check box on the Plan Enrollment Requirements window, you must budget for at least one component.

See: Defining Activity Rates for a Standard Contribution/Distribution

See: Standard Rates for Compensation Workbench

   GL Daily Rates:

Setting up GL Daily Rates enables your managers to use Compensation Workbench to enter and view budget and worksheet distributions in a currency that differs from the currency set for the profile option BEN: Benefits Preferred Currency, or, if you do not set this profile option, for the currency defined for the business group.

Line managers can select their preferred currency--you should only enable those currencies for which you have conversion rates.

• You must use a GL Daily Rate Conversion Type of Corporate for each currency you want to use with Compensation Workbench.

See: Entering Daily Rates