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Introduction
The combination plan structure enables you to use a single budget amount to award
compensation across different types of compensation.For example, you can allocate
salary increases, bonuses, and stock option awards from the same budget, also on
the same worksheet.If you want to award different type of compensation on the
same worksheet but want to use different budget amounts (ie. 1 budget for salary
and 1 budget for bonus), please follow the Component Plan Sample Setup ( Note
302084.1).
All plan structures, whether stand-alone or global, must have a global and local plan
pairing.A local plan must always be linked to a global plan even if its one in the
same.
This document will guide you in setting up a global combination plan to award
salary increases and bonuses.You can use this same sample setup to create a standalone plan by disregarding all steps related to US, UKand CA plan setup.These steps
are noted by (Skip for stand-alone plans).
The sample setup uses the US, UK, and CA business groups.These countries do not
need to be used specifically.This sample setup is only intended to serve as an
example of how 3 different business groups can be used to create a global plan.The
US business group is the master business group in which the global plan is
defined.Administrative processing must be done in the same business group in
which the global plan is defined.Steps to set up a new business group are not
included.Steps to set up conversion rates are also not included.Please refer to
Online Help for instructions these setup steps.
Note: The Total column in the Compensation Summary table within the Allocate
Compensation task does will not provide a real total for each row of data.This is
because budgets defined at the plan level in this sample setup. You can hide the
option level columns if you choose so that managers will not be confused.An
example of the data provided in the Compensation Summary table based on this
sample setup is below.
Compensation Summary
Total
Global Merit
Global Bonus
Eligible Employees
100
100
100
Employees Receiving
95
95
95
% Receiving
95
95
95
1,500,000
USD
1,500,000
USD
1,500,000
USD
Budget
150,000 USD
150,000 USD
150,000 USD
10%
10%
10%
Total Allocated
145,000 USD
90,000 USD
55,000 USD
Unused Budget
5,000 USD
9.67%
6%
3.67%
Business Rules
Some of the business rules in which this sample setup is based are as follows.
- Each country has a country specific currency.
- Budgets are published in USD.
- Budgets are published in a percentage of eligible salary.
- Managers may update rankings and rate employee performance.
- Managers may view and update employee assignment information.
- Salary increases are administered in an annual frequency.
- Line managers have access to the plan from January 1, 2006 until December 31,
2006.
- Updates to the plan cannot be made beyond November 30, 2006.
- All person related information should be displayed as of January 1, 2006.
- Approvals will climb the Supervisor Hierarchy.
- Worksheets may be submitted for approval at any time.
Setup Steps
I.
II.
This form is available to core HR customers.However, only life events that are of the
type Compensation (or Grade/Step Progression) are supported without an
1. Navigate to Total Compensation > General Definitions> Additional Setup > Life
Event Reasons.
2. Name the life event Global Combination.
3. Select Compensation as the Type.
4. Save.
III.
9. Save.
IV.
V.
Define Options
Options are defined to house the different types of compensation being awarded
within the combination plan.
VI.
Define Plans
When setting up a global plan, a global plan must be defined along with the local
plans for each country that has employees eligible for the plan.Local plans also
identify each local currency (or country) in which compensation will be awarded.
When setting up a stand-alone plan, you only need to setup a single global plan.
Define Details
11. Select the Details button.
12. Select the Plan Periods tab.
13. Enter 10 as the Sequence.
14. Choose 01-Jan-05 and 31-Dec-05 as the Start and End Date.
15. Repeat the above steps for all plan years through 2008.
16. Save.
Define Tasks
17. Select the Compensation Workbench tab.
18. Enter 10 as the Sequence.
Attach Options
VII.
1. Navigate to Total Compensation > Programs and Plans > Plan Enrollment
Requirements.
2. Query the Global Combination Plan.
3. Select the General tab.
4. Select the Plan tab.
5. On the Enrollment alternate region, select Explicit as the Method.
6. Save.
Define Timing
7. Select the Timing tab.
8. Select the Scheduled tab.
9. Select Compensation as the Enrollment Type.
IX.
For the global combination plan structures, budget rates (Budget Amount,
Worksheet Budget, Reserve Amount) are defined for the global plan at the option in
plan level.Budget rates only need to be defined in the master business group.One
set of budget rates should be defined for each option in plan.
If you are creating a stand-alone plan, skip all rate setup as noted below.
Distribution Budget
The distribution budget is the budget that a manager gives another manager to
further distribute down the reporting hierarchy.This is not the budget amount a
manager sees on his worksheet.
Budget Reserve
A budget reserve allows managers to hold back money in a budget for later use.This
rate is optional and should only be defined if managers are allowed to set aside a
reserve.
Worksheet Budget
This is the budget amount that a manager sees on his worksheet.
Worksheet Amount
This rate is required and represents the amount a manager enters on the worksheet
in money or shares.Attaching an element entry to this rate forwards this amount to
the payroll system upon running of the post process.
Eligible Salary
Eligible Salary is the salary used for CWB calculations.Eligible salary differs from
base salary and stated salary in that eligible salary is determined as of a common
date for all eligible persons.Base salary is a persons salary as of the date accessed
in CWB and is displayed in the frequency of the persons pay basis.Stated salary
may be converted to a different frequency and is displayed as of a specific
date.Stated salary is commonly defined as a multiple of a compensation factor.
If you are creating a stand-alone plan, your plan design is complete.Please refer to
Note 356770.1 for Administration help.If you are creating a global plan, please
complete the following setup steps.
XI.
Global plan structures are based on compensation being awarded across business
groups or using multiple currencies.For this sample setup, UK and CA business
groups must be set up if they are not already.(Please refer to Online Help for
instructions to set up a new business group.)
Once your business groups are set up, for each business group, follow the same
steps as above for the following items only.All other compensation objects can be
copied using the Plan Copy Process.
- Define Plan Years
- Create Derived Factors
- Create Life Event*
* If you are copingyour plan design into the same business group, you need to
create a new Life Event for your copied plan.You cannot reuse an existing life event.
The Plan Copy Process can copy your US Component Plan and all of its child records
into your UK and CA business groups one at a time as the setup is virtually the
same.Do not copy the global plan.
1. Navigate to Total Compensation> Programs and Plans > Plan Design Copy.
2. Select the link to Copy or Export Plan Design.
3. Enter UK Combo Plan as the Process Name.
4. Enter 01-Jan-1990 as the Effective Date.
5. Hit Next.
6. Select your US Combination Plan.
7. Hit Next.
8. Select the Target Category as Different Business Group (assuming that the UK
business group is in the same database.If not, then Export to a File.)
9. Hit Next.
10. Query your UK business group as the Target Business Group.
11. Enter 01-Jan-1990 as the Effective Date to Copy.
12. Select Reuse existing objects if current name exists in target as the Reuse
Method.
13. Enter a Prefix of UK.
14. Hit Next.
15. No mapping is needed.Hit Next.
16. Hit Submit.
Update the names of the copied compensation objects assuming that they do not
already exist in the target business group.
17. In the UKbusiness group, navigate to Total Compensation > Programs and Plans
> Options.
18. Query your UKUS Salary Increase option.
19. Change it the name to UK Salary Increase.
20. Save and repeat for UKUS Bonus.
21. Navigate to Total Compensation> Programs and Plans > Plans.
22. Query your UKUS Combination Plan.
23. Change the name of your plan to UK Combination Plan.
24. Change the Status to Active.
25. Select the Restrictions tab. Make sure that the Global Combination Plan is the
Global Plan.
26. Select the Not in Program tab.
27. Change the Currency to Euro.
28. Save.
Update Rate Names (Optional, as rate names are not displayed anywhere in CWB.)