Compensation

Workbench
April 2002

Self–Service Compensation Workbench

Self–Service Compensation Workbench
Part No. Axxxxx–x
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Contents

Compensation Workbench . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Setting Up a Compensation Workbench Plan . . . . . . . . . . . . . . . 4
Compensation Workbench Processing . . . . . . . . . . . . . . . . . . . . . 10
Defining a Compensation Workbench Plan . . . . . . . . . . . . . . . . . 12
Defining Enrollment Requirements for Compensation
Workbench Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Defining a Reporting Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Standard Activity Rates for Compensation Workbench . . . . . . 19
Compensation Workbench Statuses . . . . . . . . . . . . . . . . . . . . . . . 24
Running the Participation Process: Compensation . . . . . . . . . . 25
Using the Person Life Events Window for Compensation
Workbench . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Issuing a Budget to a High Level Manager . . . . . . . . . . . . 28
Updating an Employee’s Eligibility . . . . . . . . . . . . . . . . . . 28
Moving an Employee to Another Manager’s
Workbench . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Updating Amounts for an Employee . . . . . . . . . . . . . . . . . 29
Running the Compensation Workbench Post Process . . . . . . . . 31
Running the Back–out Compensation Life Events Process . . . . 32
Running the Close Compensation Enrollments Process . . . . . . 34

Contents iii
Compensation Workbench

Compensation Workbench provides your enterprise with a web–based

solution for determining and allocating compensation awards, including:

• Salary increases

• Bonuses

• Stock options

Using the Oracle HRMS professional user interface, a compensation

manager or system administrator defines Compensation Workbench plans
based on the Total Compensation data model.

Line managers and other employees responsible for distributing

compensation use Compensation Workbench––available through the Oracle
Self–Service Human Resources menu––to issue budgets to reporting
managers responsible for budgeting and to allocate compensation awards to
individual employees.

Note: Documentation for Compensation Workbench and generic

Self–Service features is also available as online help in the Oracle
HRMS professional user interface.

Compensation Workbench Features

Compensation Workbench delivers a variety of features, including:

• Employee validation

• Budget preparation

• Allocations

• Approvals and Notifications

• Reporting

Employee Validation

A manager can view employee details for his or her direct reports––and any
employee farther down in the reporting hierarchy––in Compensation
Workbench.

Eligibility requirements you can set up when you define your Compensation
Workbench plan in Oracle HRMS determine if an employee is eligible to
receive an award. You can define a plan so that a compensation
administrator can override eligibility results in the professional user
interface.

Additionally, a compensation administrator can move an employee from

one manager’s worksheet to another manager’s worksheet.

1
Budget Preparation

You can define a budget at the top level of an organization hierarchy. A

high level manager in the hierarchy issues budgets to managers who have
direct reports who are also managers.

To begin the budgeting process, a compensation manager must use the

Person Life Events window––located in the professional user interface––to
issue a budget to a high level manager.

See: Using the Person Life Events Window for Compensation Workbench,
Managing Total Compensation Using Oracle HRMS

You can define a budget using:

• Monetary amounts

• Percentages of eligible salaries

A manager can determine a reporting manager’s budget:

• Manually

• Using the Allocation Wizard

The Allocation Wizard provides a variety of calculation types that

automatically calculate the budget for one or more selected managers.
Helpful tips located in Compensation Workbench explain the features of
each calculation type.

The budget provides a variety of information to a manager, such as the

available amount to budget, the amount used, and any amount or
percentage reserved for future use that is not issued to reporting managers.

During plan design, you can determine how changes to a lower level
manager’s list of employees affect a budget. You can choose to maintain
fixed amounts or to re–calculate the budget based on a percentage.

Workflow notifications are sent automatically to reporting managers when a

higher level manager issues a budget.

Allocations

A line manager uses the worksheet to allocate compensation to any employee

at a lower level in the reporting hierarchy. A line manager cannot allocate
their own compensation. As with budgets, a line manager can use the
allocation wizard to help determine compensation awards.

The worksheet displays a variety of information about an employee that a

manager can view to help determine an allocation. You can define a plan so
that a manager can view historical information about compensation
awarded to an employee.

Approvals and Notifications

If you require worksheet approval, the Self–Service workflow process

assigns a submitted worksheet a status of Pending Approval and routes a
notification to each approver through a configurable notification hierarchy.

2
The following notifications are delivered with the product:

• Your manager has issued you a budget

• A higher–level manager has changed the due date, access level, or award
amount on your worksheet

• Your manager has Approved or Rejected your worksheet

• A reporting manager has submitted their worksheet for your approval

• Final approval obtained (notification sent to HR)

A higher level manager can approve, modify, or return a submitted

worksheet to any reporting manager below them in the hierarchy.

Note: The workflow process requires approval at the highest level

of your organization hierarchy.

Reporting

Compensation Workbench delivers the following online reports for use by

line managers:

• Bonus Detail: Employee information for bonus plan distribution

• Stock Detail: Employee stock allocation information, including grant

price, number of shares, and value

• Salary Detail: Employee information such as name, beginning salary,

eligible salary, and new salary

• Total Compensation: Salary increases, bonuses, and stock option grants

for each employee for a selected year

3
Setting Up a Compensation Workbench Plan

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: page 10

" To set up a compensation workbench plan:

1. Define plan years for the Compensation Workbench plan.

2. Define one life event reason for each plan.

3. Define a derived compensation factor if compensation awards are based

on a stored or system calcuated value, such as eligible or stated salary.

4. Define participant eligibility profiles to limit the employees who are

eligible for a Compensation Workbench plan.

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

6. Define the Compensation Workbench plan.

7. Define plan enrollment requirements.

8. Optionally, define a reporting group to include multiple Compensation

Workbench plans.

9. Define elements if you want to transfer activity rates to Oracle Payroll

or to third party applications.

10. Link the elements.

11. Optionally, define variable rate profiles if an activity rate can vary
according to one or more factors.

12. Define standard activity rates.

13. Optionally, define GL Daily Rates if you enable managers to view

amounts in the budget or the worksheet in a currency that differs from
the plan’s currency.

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.

4
 Note: The application requires year periods for life event
processing.

• 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
bonus plans)––or for which the employee earning period is less than a full
year––enter a Within Year Period.

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

See: Defining a Program or Plan Year Period, Managing Total Compensation

Using Oracle HRMS

Compensation Life Event

You set up a life event reason for your Compensation Workbench plan so
that when you process participant eligibility and electability, the batch
process assigns the compensation life event to employees and schedules the
availability period for budget and worksheet entry in Compensation
Workbench.

On the Submit Requests window, you select Participation Process:

Compensation to assign the life event to a person. The life event occurred on
date is the Assigned Life Event that you define for the plan in the Plan
Enrollment Requirements window.

Note: To avoid life event collisions, set up one life event reason per
Compensation Workbench plan.

• Enter a life event reason 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 in other application windows.

• Select a life event reason Type of Compensation.

Compensation Workbench life events require no additional set up. Do

not define person changes for Compensation Workbench life events.
Standard Benefits should not create any life events other than the Type of
Compensation.

See: Defining General Characteristics of Life Events, Managing Total

Compensation Using Oracle HRMS

Derived Factors

Compensation awards are typically based on a derived compensation factor,

such as eligible salary or stated salary. You link the derived factor to the
standard rate or variable rate to determine the amount that is used in
Compensation Workbench for display purposes to help a manager make a
more informed decision about an award.

5
Derived compensation factors can use stated salary, defined balances,
historical balances, prorated balances, benefits balances, salary as of a
defined date, or a FastFormula rule that you define.

You can also use a derived factor as a component in a distribution

calculation based on a percentage of the derived amount.

Note: Use the derived factor to convert various pay bases to one
pay basis for all employees.

See: Derived Factors, Managing Total Compensation Using Oracle HRMS

Eligibility

You can define participant eligibility profiles to limit the employees who are
eligible for a Compensation Workbench plan. If you do not define an
eligibility profile, the application finds all employees and ex–employees
eligible for your plan.

• In the Applies To field, select Benefits Profile for Compensation

Workbench plans.

See: Defining an Eligibility Profile, Managing Total Compensation Using

Oracle HRMS

Compensation Plan Types

Your plan requires a compensation plan type.

• Select Compensation Workbench as the Option Type.

• Select one of the following Compensation Categories:

• Comp – Bonus

• Comp – Stock Options

• Comp – Salary

Comp – Salary identifies compensation plans that alter the amount

displayed on the Salary Administration window for a person after you
process a compensation distribution.

See: Defining Plan Types, Managing Total Compensation Using Oracle HRMS

Compensation Workbench Plans

You define a compensation workbench plan for each unique compensation

offering that you administer within Oracle HRMS for a business group.

Typical compensation plans include salary increases linked to a yearly focal

review period, scheduled bonuses, and stock option grants.

See: Defining a Compensation Workbench Plan, Managing Total

Compensation Using Oracle HRMS

6
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

See: Defining Enrollment Requirements for Compensation Workbench

Plans, Managing Total Compensation Using Oracle HRMS

Reporting Groups

For Compensation Workbench, you can create a reporting group as a

container to hold multiple plans. The name of the reporting group appears
on the Home Page in Compensation Workbench.

Create a global reporting group to include plans from more than one
business group. This enables a line manager to use a single signon to review
and allocate compensation for employees in different business groups.

Defining a reporting group places a plan switcher on your Self–Service web

pages that allows you to switch between available compensation plans. You
must have eligible employees below you in the hierarchy to see more than
one plan.

See: Defining a Reporting Group, Managing Total Compensation Using Oracle

HRMS

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.

Note: You do not need to define elements for salary plans, only for
bonus and stock option plans. The application automatically
updates the employee’s salary basis.

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:

7
• 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, Managing Total Compensation Using Oracle HRMS

Element Links

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

See: Defining an Element Link, Managing Compensation and Benefits Using

Oracle HRMS

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.

See: Defining General Information for a Variable Rate Profile, Managing

Total Compensation Using Oracle HRMS

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

Each standard rate uses an activity type to control many of the columns that
display in the 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.

See: Defining Activity Rates for a Standard Contribution/Distribution,

Managing Total Compensation Using Oracle HRMS

See: Compensation Workbench Activity Types, Managing Total Compensation

Using Oracle HRMS

8
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.

Note: Conversions are for display purposes only and do not affect
actual paid amounts.

See: Entering Daily Rates, Oracle General Ledger Users’ Guide

9
Compensation Workbench Processing

Use the following process to administer your Compensation Workbench

plans after you define them in Oracle HRMS using the Total Compensation
data model.

For information about implementing Compensation Workbench plans, see:

Setting Up a Compensation Workbench Plan

1. Run the Participation Process: Compensation.

Run this process prior to the availability period of Compensation

Workbench to prepare the Self–Service interface for data entry by your
line managers.

The process assigns the compensation life event to a person and

determines eligibility and rates. The process displays its results on the
Person Life Events window.

See: Running the Participation Process: Compensation: page 25

2. Issue the highest level budget.

You issue a budget to the highest level manager in your organization

hierarchy using the Person Life Events window in the professional user
interface.

The high level manager can then use Compensation Workbench to issue
budgets to lower level managers.

See: Issuing the Budget to the Highest Level Manager: page 28

3. Line managers use Compensation Workbench to enter compensation

awards.

4. Run the Compensation Workbench Post Process.

Run this process after all worksheet allocations have been approved to
write the distribution totals to enrollment results.

See: Running the Compensation Workbench Post Process: page 31

5. Optionally, perform enrollment overrides.

If necessary, use the Override Plan Enrollment window to override an

amount for a person after you run the Compensation Workbench Post
Process.

Note: Values you enter in this window update element entries for
bonus and stock option plans. However, for salary plans, overrides
you enter on this window do not update the Salary Administration
window.

See: Overriding Enrollment Results for a Plan, Managing Total

Compensation Using Oracle HRMS

10
6. Run the Close Compensation Enrollments Process.

This process closes the compensation life event for one or more persons
as selected by the batch process parameters. You do not need to run this
process if you set up the Compensation Workbench Post Process to close
the compensation life event.

See: Running the Close Compensation Enrollments Process: page 34

11
Defining a Compensation Workbench Plan

Use the Plans window to define a compensation workbench plan.

Note: You can also use the Plans window to define employee
benefits plans. Compensation plans use only a subset of the features
available on the Plans window.

1. Enter the plan Name.

Note: By using a generic plan name (one that does not include a
particular year period), you can re–use the plan over multiple
award periods.

2. Select a Status of Active.

Change the status to inactive to remove the plan from Compensation

Workbench.

3. Select the Plan Type you created for this plan.

4. Required: In the Plan Usage field, select May not be in Program.

5. Choose the Eligibility Rates tab.

6. Check the Track Ineligible Person field to enable eligibility overrides

without having to re–run the Participation Process: Compensation to
determine eligibility or rates.

7. Choose the Not in Program tab.

8. Enter the Sequence number of this plan if you want compensation plans
to display in a particular order in Self–Service.

9. Select the Currency of your plan.

You must create a separate plan for each plan with a unique currency.

10. Leave the Enrollment Rate/Frequency field blank.

11. Select an Activity Reference Period that matches your most common
pay basis.

This determines the period for which the base salary is displayed, and
the amount in which salary increases are entered.

12. Choose the Details button to open the Maintain Plan Related Details
window.

13. Attach the plan years you defined to the plan.

14. Close the Maintain Plan Related Details window.

15. Choose the Plan Eligibility button.

16. Attach any eligibility profiles you created to the plan.

12
 Note: You do not attach options to plans for Compensation
Workbench.

17. Save your work.

13
Defining Enrollment Requirements for Compensation Workbench Plans

Use the Plan Enrollment Requirements window to define the scheduled

availability period for a compensation workbench plan and to establish
certain budget and worksheet properties.

Note: You can also use the Plan Enrollment Requirements window
to define electability requirements for employee benefits plans.
Compensation plans use only a subset of the features available on
this window.

1. Query the plan for which you are defining enrollment requirements in
the Plan field.

2. With the General tab and the Plan tab selected, choose the Enrollment
tabbed region.

3. Select Explicit as the enrollment Method.

4. Select Current, Can Keep or Choose; New, Can Choose as the

Enrollment Code.

5. Choose the Coverage tabbed region.

Note: By setting coverage and activity rate start and end dates at
the plan level you will not have to update these codes for each
availability period.

6. In most instances, select Elections as the Enrollment Coverage Start

Date.

This starts the employee’s coverage as of the effective date of the

Compensation Workbench Post Process.

7. Required: select 1 Prior or Event as the Enrollment Coverage End Date.

This ends the employee’s coverage one day prior to the start of any
subsequent coverage.

8. Choose the Rates tabbed region.

9. In most instances, select Elections as the Rate Start Date.

This starts the employee’s rate––and element entry––as of the effective

date of the Compensation Workbench Post Process.

10. Required: select 1 Prior or Event as the Rate End Date.

11. Choose the Timing tab and then the Scheduled tab.

12. Select Compensation as the Enrollment Type.

You can only select this Enrollment Type if the option type of the plan
type you attached to this plan is Compensation Workbench.

Note: When you select this enrollment type, the application

re–draws the window to display regions unique to compensation
plans.

14
13. In the Enrollment or Availability Period Start and End fields, enter the
date range for which Compensation Workbench is available in
Self–Service for this plan.

Availability periods for the same plan cannot overlap.

Attention: Once you run the Participation Process: Compensation, you

cannot change the availability period unless you back out the life event.
Subsequent runs of the process must be after the previous life event has
been closed for all individuals and the previous availability period has
ended.

14. Enter the effective date of the compensation life event in the Assigned
Life Event Date field.

The assigned life event date sets the date by which the Compensation
Participation Process evaluates your plan design to determine eligibility,
activity rates, and each employee’s supervisor.

15. Select a previously defined compensation life event reason for this plan
in the Life Event field.

Note: You can only have one life event per plan.

16. In the No further processing is allowed after field, enter the last date on
which you can make changes in the professional user interface to this
compensation plan.

17. Enter a Close Enrollment Date to use code that determines the date
when the life event status is changed from started to processed:

• Processing End Date (Closed by the Close Compensation Enrollments

Process on the No further processing date)

• When Elections Are Made (Recommended––Closed by the

Compensation Workbench Post Process on the effective date of the
process)

• When Enrollment Period Ends (Closed by the Close Compensation

Enrollments Process as of the Availability Period end date)

18. Select the Year Period of this plan.

19. Select a Within Year Period if this plan uses a period of less than a year
to determine available compensation.

Budget Characteristics

20. Choose the Budget tabbed region.

21. Select the Uses Budget check box to enable high level managers to issue
budgets to lower level managers.

You must check this field to enable the use of budgets at any level in the
application.

15
22. Select whether to store budgets as percents or amounts in the Preserve
Budget Column field.

If you select percent (recommended), the application automatically

recalculates a manager’s distribution budget and worksheet budget if
an employee becomes eligible or ineligible or is transferred between
managers.

23. Enter the date range for which a manager can access and update the
Budget in the Self Service Budget Update Period block.

You can change the date range for the budget at any time without
having to re–run Participation Process: Compensation for the change to
take effect.

Worksheet Characteristics

24. Choose the Worksheet tabbed region.

25. Enter the date range for which a manager can access and update the
Worksheet in the Self Service Worksheet Update Period block.

You can change the date range for the worksheet at any time without
having to re–run Participation Process: Compensation for the change to
take effect.

26. Select the Default Worksheet Access for all managers:

• Not Available

• Read Only

• Updateable

You can override the default worksheet access for a manager using the
Person Life Events window. Using Self–Service, a high level manager
can set the default worksheet access for lower level managers within
their hierarchy.

Hierarchy and Performance Ratings

27. Choose the Miscellaneous tabbed region.

28. Select whether you administer Compensation Workbench plans based

on a manager’s supervisor hierarchy or a position hierarchy.

29. Select a position hierarchy if you administer this plan based on

positions.

The application checks for a manager’s supervisor if it cannot find a

position in the hierarchy above the manager’s current level. This
supervisor can be in a different business group.

If you use position hierarchies––and you want an employee to report to

a supervisor in a different business group for budget purposes––create a

16
 placeholder position above that employee in the hierarchy and do not
assign a person to the position.

30. If you maintain employee performance ratings in Oracle HRMS, and

you want to display those rating in Compensation Workbench, select the
Performance Rating Type for this plan.

You can only display one performance rating type at a time for a
compensation plan in Compensation Workbench.

31. Save your work.

17
Defining a Reporting Group
You use the Reporting Groups window to define a reporting group and
to associate programs and plans with the reporting group. You can
also define which regulatory bodies and regulations govern the
reporting group.

" To define a reporting group:

1. Enter a unique Name for the reporting group.
2. Select the Global check box to include plans in the reporting group
from any business group.
Note: Create a global reporting group if you implement a
Compensation Workbench plan and you enable a manager to
review or allocate compensation for employees in different
business groups.
3. Select the Purpose of the reports that will be generated for this
reporting group.
Select a purpose of Compensation Plan Groupings for
Compensation Workbench.
4. Enter a Description of the reporting group.
5. Save your work.

18
Standard Activity Rates for Compensation Workbench

You can define standard rates to meet a variety of business needs for a
Compensation Workbench plan. Most rates display fixed or enterable
amounts that appear as columns in the self–service interface. You can also
base a rate on a multiple of compensation that uses a derived compensation
factor you have defined.

The rates can allow input from a manager––to complete a distribution––or

provide guidance for a manager’s decision–making.

The activity type you select when you define a standard rate determines how
and where Compensation Workbench uses the rate.

See below for a description of activity types that have specific functions for
Compensation Workbench.

Standard Rate Activity Types

CWB Worksheet Amount

This activity type stores a manager’s worksheet allocations for an employee

in money or shares. This is an employee’s award amount.

For bonuses and stock options, you attach an element and input value to this
standard rate to pass the allocation to payroll. Check the Assign on
Enrollment field so that the Compensation Workbench Post Process can write
the element entry (for bonus and stock plans) or update the person’s salary
amount (for salary plans) and salary element.

Required? Required
Maximum Defined Per Plan One
Assign on Enrollment Recommendation Checked
Enter Value at Enrollment Recommendation Checked
Override Recommendation Checked
Unit of Measure Recommendation Blank or Shares
Attach elements? Yes

CWB Distribution Budget (Required if Budgeting)

This activity type stores the budget amount or percent of eligible salaries
issued by a high–level manager to another manager.

Use the Preserve Budget Column field on the Plan Enrollment Requirements
window to set whether the application stores budgets as amounts or
percents.

Required? Required if budgeting

Maximum Defined Per Plan One

– 19 –
Assign on Enrollment Recommendation Unchecked
Enter Value at Enrollment Recommendation Checked
Override Recommendation Checked
Unit of Measure Recommendation Shares of Blank if monetary
Attach elements? No

CWB Worksheet Budget

The total monetary or share amount available to a manager to distribute to

employees.

Required? Required if budgeting

Maximum Defined Per Plan One
Assign on Enrollment Recommendation Unchecked
Enter Value at Enrollment Recommendation Checked
Override Recommendation Checked
Unit of Measure Recommendation Shares or Blank if monetary
Attach elements? No

CWB Reserve

Enables a manager to retain a certain amount of money or shares in a budget

for distribution at a later time.

Required? Never required

Maximum Defined Per Plan One
Assign on Enrollment Recommendation Unchecked
Enter Value at Enrollment Recommendation Checked
Override Recommendation Checked
Unit of Measure Recommendation Blank or Shares
Attach elements? No

CWB Eligible Salary (Required if distributing budgets by percentage)

This activity type is required if you distribute budgets by percentage, and

recommended for bonus and salary plans if you budget by amount.

Uses a derived compensation factor to determine an employee’s eligible

salary. You can prorate an employee’s salary based on length of service using
a FastFormula rule to determine their eligible salary.

Required? Required if distributing budgets by percentage

Maximum Defined Per Plan One
Assign on Enrollment Recommendation Unchecked
Enter Value at Enrollment Recommendation Unchecked
Override Recommendation Checked

– 20 –
Unit of Measure Recommendation Blank
Attach elements? No

CWB Stated Salary

Use for salaries that can be converted to a different frequency than the one set
in a person’s pay basis. The stated salary is stated as of a specific date and is
usually a multiple of a compensation factor. Use stated salary if you want an
amount other than eligible salary. Unlike eligible salary, you cannot prorate
stated salary.

Required? Never required

Maximum Defined Per Plan One
Assign on Enrollment Recommendation Unchecked
Enter Value at Enrollment Recommendation Unchecked
Override Recommendation Checked
Unit of Measure Recommendation Blank
Attach elements? No

CWB Other Salary

Used when eligible and stated salary are not sufficient to display the result of
a calculated derived factor in Compensation Workbench.

Required? Never required

Maximum Defined Per Plan One
Assign on Enrollment Recommendation Unchecked
Enter Value at Enrollment Recommendation Unchecked
Override Recommendation Unchecked
Unit of Measure Recommendation Blank
Attach elements? No

CWB Misc Rate 1, 2, and 3

You can define miscellaneous standard rates to use for storing any numeric
value in Compensation Workbench, for example, vacation hours,
performance ratings, or length of service. Miscellaneous rates often require a
FastFormula rule to derive a value.

Both the budget and the worksheet use Misc Rate 1. Only the worksheet uses
Misc Rate 2 and 3. You can rename these columns in the self–service
interface.

Required? Never required

Maximum Defined Per Plan One of each
Assign on Enrollment Recommendation Unchecked
Enter Value at Enrollment Recommendation Unchecked

– 21 –
Override Recommendation Unchecked
Unit of Measure Recommendation Blank if monetary, or use any value––this has no
impact on processing
Attach elements? No

CWB Recommended Amount

Displays minimum and maximum recommended compensation increases on

the worksheet. Often, recommended rates use variable rate profiles––based
on a percentage of a multiple of compensation––to derive the recommend
increase based on an employee’s compensation.

A manager can distribute a recommended amount using the Allocation

Wizard. You can view recommended amounts in the employee detail section
of the web page.

Required? Never required

Maximum Defined Per Plan One
Assign on Enrollment Recommendation Unchecked
Enter Value at Enrollment Recommendation Unchecked
Override Recommendation Checked
Unit of Measure Recommendation Blank or Shares
Attach elements? No

CWB Total Compensation

The total of a person’s compensation stated as a monetary amount. You must

define a derived factor that provides the total through a balance or a
FastFormula rule. Attach this derived factor to the rate that uses this activity
type.

Required? Never required

Maximum Defined Per Plan One
Assign on Enrollment Recommendation Unchecked
Enter Value at Enrollment Recommendation Unchecked
Override Recommendation Checked
Unit of Measure Recommendation Blank
Attach elements? No

CWB Grant Price

Records a stock option grant price if you maintain a grant price in Oracle
HRMS. You can display the grant price on the Worksheet History page and
through reports. You enter the grant price as a parameter when you run the
Compensation Workbench Post Process.

As an estimate, you can enter the grant price in Compensation Workbench.

The Post Process overrides this value with the value you enter when you run
the process.

– 22 –
 Note: Define the CWB Grant Price activity rate even if you do not
know the grant price.

Required? Never required

Maximum Defined Per Plan One
Assign on Enrollment Recommendation Checked
Enter Value at Enrollment Recommendation Unchecked
Override Recommendation Checked
Unit of Measure Recommendation Blank
Attach elements? No

CWB Additional Element History

Displays element entry history for compensation elements distributed

outside of Compensation Workbench. For example, if your enterprise offers
a signing bonus to executives, you could link the elements used to record the
signing bonus to a Compensation Workbench bonus plan.

If you administer multiple plans of the same plan type (bonus, for example),
you should link this activity type to only one standard rate for any plan of
that plan type. The element will appear in the compensation history table
corresponding to that plan type in Compensation Workbench.

Assign this standard rate a status of inactive to prevent the Participation

Process: Compensation from processing the rate.

Required? Never required

Maximum Defined Per Plan No maximum
Assign on Enrollment Recommendation Unchecked
Enter Value at Enrollment Recommendation Unchecked
Override Recommendation Unchecked
Unit of Measure Recommendation Blank
Attach elements? No

– 23 –
Compensation Workbench Statuses

Budget Status

Not Started: The manager has not started to allocate the Distribution Budget
to the reporting managers or has changed the Budget Population, thus
clearing all saved budget allocations.

In Progress: The manager has started to allocate the Distribution Budget but
has elected Save For Later and has not yet started to issue budgets (making
the budgets available).

Issued: The manager has issued a budget to at least one reporting manager.

Worksheet Status

Not Started: The manager has not started to allocate Budgeted amounts to
employees.

In Progress: The manager has started to allocate the Budget but has elected
Save For Later and has not yet submitted the worksheet for approval.

Complete: A high level manager has completed his or her own worksheet,
but has not submitted the worksheet for approval.

Pending Approval: The manager has submitted the worksheet for approval.

Approved: The user’s manager has approved the worksheet.

Processed: The Compensation Workbench Post Process has run. Award

amounts are final, and––where applicable––sent to payroll.

Budget/Worksheet Access

Read Only: The manager cannot perform any allocations or distributions.

Updateable: The manager can update the budget or worksheet to perform

distributions or allocations.

Not Available: The user cannot view the Budget or Worksheet.

– 24 –
Running the Participation Process: Compensation

You run the Participation Process: Compensation before the availability

period of a compensation plan. The process determines eligibility, calculates
rates, and assigns the compensation life event to each eligible person.

Once you run the process, you can use the Person Life Events window to
enter a budget for the highest level manager in your enterprise responsible
for distributing budgets in Compensation Workbench.

You run Processes from the Submit Requests window.

" To run the Participation Process: Compensation:

1. Select Participation Process: Compensation in the Name field.

2. Enter the Parameters field to open the Parameters window.

3. Set the effective date of the process to a date on or after the assigned life
event date.

4. Select Commit or Rollback in the Validate field.

Select Rollback to check your results before committing them to the

database. It is easier to correct errors before you commit results.

5. Select the compensation plan in the Plan Name field.

6. Select a year Period.

7. Select a Person Type if you want to run the process for a specific person
type (such as employee) for this compensation plan.

8. Select a Person Selection Rule if you want to run the process for persons
who match the criteria of your rule.

9. To further limit the persons evaluated by the process, select from one or
more of the following parameters.

• Organization

• Benefits Group

• Location

• Postal Zip Range

• Legal Entity

• Payroll

10. Select Yes in the Audit Log to create a file that lists the eligibility results
for each person evaluated by the process.

If you select Yes, you should periodically run the Participation Audit
Activity Purge process to purge the audit log tables.

25
11. Choose the OK button.

12. Complete the batch process request and choose Submit.

26
Using the Person Life Events Window for Compensation Workbench

After you set up your Compensation Workbench plan, you run Participation
Process: Compensation on the Submit Requests window to determine a
person’s eligibility and the availability period of Compensation Workbench.

A compensation manager then uses the Person Life Events window to issue
a budget to a high level manager or managers in the organization
responsible for issuing budgets. High level managers in a hierarchy use
Compensation Workbench to issue budgets to lower level managers.

See: Issuing a Budget to a High Level Manager: page 28

As a compensation manager, you can also use the Person Life Events
window to override any employee’s eligibility or their award amount, or to
change a budget amount issued to a manager in Compensation Workbench.

See: Updating an Employee’s Eligibility: page 28

See: Updating an Employee’s Budget or Worksheet Amount: page 29

You can move an employee from one manager’s worksheet to another

manager’s worksheet. The move is effective only for the selected plan and
period.

See: Moving an Employee to Another Manager’s Worksheet: page 29

Note: You can use the Person Life Events window to back out a life
event for a single person. However, it is recommended that you use
the Back–out Life Events Process to back out the entire life event.

Note: Do not use this window to close a person’s compensation life

event. Use the Close Compensation Enrollments Process.

You can also enter the Due date by which you want a manager to complete
the budget or worksheet. This is considered information only, and does not
affect budget or worksheet processing.

The Export check box appears checked if the manager has exported their
budget or worksheet using Compensation Workbench. The field appears
unchecked if the manager:

• Chooses Save for Later

• Issues the budget (which performs a save)

• Chooses Complete Worksheet (which performs a save)

The Population field displays the level at which the high level manager
issues budgets. The manager selects this value in Compensation
Workbench.

• Direct Reports: The high level manager issues a budget to his or her
direct reports.

27
 • All Managers: The high level manager issues a budget to each direct
report and to all the budgeting managers beneath the direct reports.

Issuing a Budget to a High Level Manager

" To issue a budget to a high level manager:

1. Query the Name of the high level manager to whom you are issuing the
budget.

2. Select the started compensation life event that corresponds to your

compensation plan.

3. Choose the Enrollment Opportunities button to open the Enrollment

Opportunities window.

4. Choose the Compensation tabbed region.

5. Select the compensation plan in the Program or Plan field.

6. Select a budget or worksheet Access level for this manager.

• Read Only

• Updateable

• Not Available

Select Updateable to issue a budget to your highest level manager.

7. Choose the Electable Choices button to open the Electable Choices

window.

8. Choose the Rates button to open the Rates window.

9. Choose the Amount tabbed region.

10. Select the CWB Distribution Budget rate in the Rate Name field.

11. Enter the budget amount you are issuing to the high level manager in
the Issued Amount field.

Enter a percent (without the percent symbol) if you are budgeting based
on a percentage of eligible salaries. For example, enter .10 for ten
percent.

The high level manager can now log in to Compensation Workbench to

begin issuing budgets to lower level budgeting managers.

Note: If the Issued Amount field appears disabled, make sure that
the standard rate allows overrides.

Updating an Employee’s Eligibility

" To update an employee’s eligibility:

1. Repeat steps 1 to 5 above, querying the employee whose eligibility you

want to change

28
 2. Choose the Electable Choices button to open the Electable Choices
window.

3. You can override a employee’s eligibility for this plan in the Eligibility
field.

4. If applicable, select the Ineligibility Reason for this person.

• The application displays the override date and the person who
committed the override in the Overridden On and Overridden By
fields.

Moving an Employee to Another Manager’s Workbench

Moving a person from one manager’s worksheet to another manager’s

worksheet does not affect your actual organization hierarchy. The move
only affects the selected plan for the current year period or within year
period. If you re–run the Participation Process: Compensation, the process
restores the person to the original manager’s worksheet.

Note: If you change an employee’s supervisor on the Assignment

window after you run the Participation Process: Compensation,
you must update the employee’s worksheet manager if you want
the employee to appear on the new manager’s worksheet.

" To move an employee to another manager’s worksheet:

5. Select the new manager in the Worksheet Manager field.

Note: If the worksheet manager field is blank, the application

routes a worksheet submitted for approval to each person with a
Role Type of Compensation Administrator.

See: Defining Workflow Roles for Transactions, Managing Your

Workforce Using Oracle HRMS

6. For a worksheet, enter any Comments you want to display about an

employee in Compensation Workbench.

Line managers and view and update these comments.

Updating Amounts for an Employee

You can use the Person Life Events window to update any Compensation
Workbench amount for an employee––such as budget, worksheet, eligible
salary, budget reserve, or grant price.

" To update amounts for an employee:

1. Query the Name of the employee for whom you are issuing a budget or
worksheet amount.

29
2. Select the compensation life event that corresponds to your
compensation plan.

3. Choose the Enrollment Opportunities button to open the Enrollment

Opportunities window.

4. Choose the Compensation tabbed region.

5. Select the compensation plan in the Program or Plan field.

6. Select a budget or worksheet Access level for this manager.

7. Enter the Due date by which you want the manager to complete the
budget or worksheet.

This is considered information only, and does not affect budget or

worksheet processing.

8. Choose the Electable Choices button to open the Electable Choices

window.

9. Choose the Rates button to open the Rates window.

10. Choose the Amount tabbed region.

11. In the Rate Name field, select the rate for which you are entering an
amount.

12. Enter a value in the Amount field.

Enter a percent (without the percent symbol) if you are basing the rate
on a percentage of eligible salaries.

13. Enter an Issued Amount if you are issuing a budget or a worksheet to a

manager.

Note: When issuing a budget to a lower level manager, the Amount

and Issued Amounts should be the same. The supervising manager
of the lower level manager sees the value from the Amount field in
his or her Budget.

14. Save your work.

30
Running the Compensation Workbench Post Process

You run the Compensation Workbench Post Process after line managers have
approved all budget and worksheet entries.

The process writes the allocated amounts to an employee’s salary and

element entry––for salary changes––or to element entries for other activity
rates, such as bonuses, if you attach an element to the applicable rate when
you define the rate.

You run processes from the Submit Requests window.

" To run the Compensation Workbench Post Process:

1. Select Compensation Workbench Post Process in the Name field.

2. Enter the Parameters field to open the Parameters window.

3. Enter the effective date of the process.

Note: The effective date is the date of the election if you set the Rate
Start Date code to Elections. For example, set the effective date to
September 1st if a bonus or salary increase is effective as of that
date.

4. Select Commit or Rollback in the Validate field.

Select Rollback to check your results before committing them to the

database. It is easier to correct errors before you commit results.

5. Select the compensation plan in the Plan Name field.

6. Select an Enrollment Period.

7. Select the name of a specific person in the Person Name field if you
want to run the process for one person.

8. Enter a Grant Price if this is a Stock Option plan and you want to record
the grant price for each person who received a grant.

Note: You must define a standard activity rate with an activity type
of CWB Grant Price to record a grant price prior to running the
Participation Process: Compensation.

9. Select Yes in the Audit Log to create a file that lists the results for each
person evaluated by the process.

If you select Yes, you should periodically run the Participation Audit
Activity Purge process to purge the audit log tables.

10. Choose the OK button.

11. Complete the batch process request and choose Submit.

31
Running the Back–out Compensation Life Events Process

You run this process to remove the results of the Participation Process:
Compensation for a compensation life event in the case of errors or changes
in plan design.

Typically, you run this process before you run the Compensation Workbench
Post Process if you need to back out a compensation life event. However,
you can run the process any time before a payroll run has processed your
results.

Note: Use caution if you run this process. Persons selected by the
process lose all rates assigned during the selected period––including
amounts they entered on a budget or worksheet, or an award
distributed to the person by another manager.

As an alternative to backing–out the compensation life event, use the

Override Plan Enrollment window to override an activity rate result for a
person, or use the Person Life Events window to override eligibility or to
change worksheet managers.

You run processes from the Submit Requests window.

" To run the Back–out Compensation Life Events Process:

1. Select Back–out Compensation Life Events Process in the Name field.

2. Enter the Parameters field to open the Parameters window.

3. Enter the effective date of the process.

Typically, this is the same as the To Occurred Date in step 6.

4. Select Commit or Rollback in the Validate field.

Select Rollback to check your results before committing them to the

database.

5. Select the compensation Life Event to back out.

6. Enter the date range for which you want to back out results in the From
Occurred Date and To Occurred Date fields.

7. To further limit the persons evaluated by the process, select one or more
of the following parameters.

• Organization

• Location

• Person Benefit Group

• Legal Entity

• Person Selection Rule

32
8. Select a Resulting Status of the backed out life event.

Select a status of Voided.

9. Choose the OK button.

10. Complete the batch process request and choose Submit.

33
Running the Close Compensation Enrollments Process

This process closes the compensation life event for the selected persons
when the following conditions exist:

• The availability period for the compensation plan is passed

• The final processing date for the plan is passed

If you set the Close Enrollment Date code for a plan to When Elections are
Made, you do not need to run this process. Run the Compensation
Workbench Post Process to close the life event.

You run processes from the Submit Requests window.

" To run the Close Compensation Enrollments Process:

1. Select Close Compensation Enrollments Process in the Name field.

2. Enter the Parameters field to open the Parameters window.

3. Enter the effective date of the process.

4. Select the compensation plan in the Plan Name field.

5. Select a Location to close the compensation life event for persons who
work in a specific location.

6. Select the compensation Life Event to close.

7. Select an Assigned Life Event Date to close a life event that was
assigned on a particular date.

8. Select the name of a specific person in the Person Name field to run the
process for one person.

9. Select a Person Selection Rule to run the process for persons who match
the criteria of your rule.

10. Select Commit or Rollback in the Validate field.

Select Rollback to check your results before committing them to the

database.

11. Select Yes in the Audit Log to create a file that lists the results for each
person evaluated by the process.

If you select Yes, you must periodically run the Participation Audit
Activity Purge process to purge the audit log tables.

12. Select a Close Mode.

• Force Close always closes the life event.

• Normal Close closes the life event based on the close enrollment date.

34
13. Choose the OK button.

14. Complete the batch process request and choose Submit.

35