Salary, Grades, and Pay AdministrationSalary, Grades, and Pay Administration OverviewOracle HRMS provides flexible mechanisms that support common industry approaches to grade implementation, and salary and pay administration. Show
GradesEnterprises use grades to compare roles within their organizational structure and relate compensation to grades to pay their employee in groups. Oracle HRMS uses grades to represent relative levels of management or seniority of employees in an enterprise, and provides alternative approaches to grade related pay administration, if you administer salaries for groups of employees. Models of Pay AdministrationOracle HRMS supports the following typical models of grade implementation and pay administration.
Recording Market Compensation SurveysUsing Oracle HRMS you can enter details from compensation surveys conducted across your industry. You can then link the survey details for individual jobs, called salary survey lines, to the jobs, positions, and assignments you use in your enterprise. Note: You can also download information from market survey companies using APIs. See: Entering Compensation Surveys Reporting on Salary, Pay, and Grade ProgressionThe salary amounts or wage rates you enter or change provide your enterprise with information for analysis purposes. If you are also using Oracle Payroll, they also provide some of the values that payroll calculations use. If you are using another payroll system, they can also provide salary information for that payroll to process. Oracle HRMS and Oracle HRMSi enable you to generate a range of reports to meet your business analysis needs and aid payroll calculations. For example, using the Salary Review Report you can check the current and past salaries for some or all of your employees. The Compensation History page in SSHR enables you to view the in-progress, current, and historical information about compensation and ranking of your employees. If you use Compensation Workbench, this feature supplies a number of reports for salary changes, bonuses, and stock options. See: Compensation Reporting and Salary and Grade Related Pay and Progression -- Reports, Oracle HRMS Configuring, Reporting, and System Administration Guide Oracle HRMS also includes various Workforce Intelligence reports that help you analyze salary and grade related information. Key ConceptsTo enable you to manage the basic remuneration that employees receive, you need to understand the following key concepts that underpin the Salary Administration functionality:
To enable you to effectively enter information about salary surveys you need to understand another key concept:
To enable you to manage grade related pay and progression, you need to understand the following key concepts:
To use Rate by Criteria, read:
Salary, Grades, and Pay AdministrationUsing the Salary Administration functionality in Oracle HRMS you are able to manage efficiently the basic remuneration that employees receive. You can manage grade-related pay using Grade/Step Progression, and variable pay using Rate by Criteria. How does HRMS enable you to administer salaries?You can enter salary amounts or wage rates for all new employees that take effect immediately. You can also enter proposals for salary changes and identify the various components making up the changes. For rapid updates to many salaries, you can download salary information to a spreadsheet, modify it, and upload again using Web Applications Desktop Integrator (Web ADI). You can also use Compensation Workbench to allocate compensation awards and propose changes to salary components. Once you have proposed salary changes, you can approve and implement the proposed changes quickly and easily. Can you associate salary changes with performance reviews?Yes. You are able to associate all salary changes with the result of performance reviews. Also, you can identify which components of a salary change are associated with performance, such as merit awards. How do you handle grade related pay?Depending on the requirements of your enterprise you may choose either the Grade/Step Progression (GSP) or the non-automatic step progression features to manage your grade related pay. If you follow the non-automatic step progression approach, you use grade rates, pay scales, scale rates, and grade scales to relate grades or sub-grades to pay. If you use the Grade/Step Progression approach, you use the Grade Ladder to group together grades (and grade steps) and then define default and criteria salary rates to relate grades to pay. Can you vary grade related pay across your enterprise?If you differentiate grade-related pay according to certain predefined criteria, you can use the Grade/Step Progression business process to record different pay rates for the same grade (or grade step). For example, if your enterprise differentiates pay for employees who are on the same grade (or step) but in different office locations, you can record one set of pay rates (known as criteria salary rates) for each location. How do you pay employees at varying rates based on the roles they perform?Rate by Criteria (RBC) offers the flexibility of the rate matrix, enabling you to pay any employee at a different rate for each role they perform. You can specify multiple (up to seven per matrix) eligibility criteria such as location and shift; rate parameters such as minimum, maximum, and overtime rates; define your own criteria; and tailor payroll formulas that call the RBC function. You can also leverage the integration with Oracle Time and Labor to tie RBC to timecards. Can you automate the progression of employees in your enterprise?The Grade/Step Progression business process enables you to group together grades (and grade steps) and then define system-based rules for their progression. These rules allow you to define how an employee becomes eligibility for progression, the grade (or step) to which they are eligible to progress, any salary updates relating to successful progression, and how those salary updates are passed to your payroll. When the application finds an employee eligible for progression, it either progresses them automatically, or flags them for manual progression, and makes any necessary salary updates (if you have set up Grade/Step Progression to apply automatic salary updates). Can you analyze and compare salaries for groups of employees?Yes. You can report on current and previous salaries for groups of employees (such as employees in a selected organization or on a certain grade). You can compare salaries to the mid point defined for a grade. You can download salary proposals to a spreadsheet for "what if" analysis. Using HRMSi you can review current and proposed salaries of comparable groups of employees. Can you map market compensation surveys to information for your enterprise?Yes. Using Oracle HRMS you enter the results of different compensation surveys. For example, you can record the minimum and maximum salaries for jobs within your industry. You can then link the compensation survey details to jobs, positions, and assignments within your enterprise. If Payroll is installed, does this link to pay?Yes. No matter which method you choose to administer pay, Oracle Payroll can process the pay rates for which your employees are eligible. Salary Administration SetupSalary Earnings ElementsFor Salary Administration, you need at least one salary earnings element for each group of employees whose salary is quoted on the same basis (such as hourly or monthly). You then link these elements to components of employee assignments, to determine which employees are eligible for a particular element. Oracle Payroll can process these elements in payroll runs to generate salary amounts for employees. A third party payroll can take information from these elements for use in generating amounts for employees. HR-OnlyIf you are an HR-only customer, you need to work closely with your Payroll Department to ensure that the elements used in Salary Administration are correctly set up for transmission of information to whatever payroll is in use. Predefined Earnings ElementsSome HR localizations have certain predefined earnings elements already set up when you receive your HR system. For example, US-HRMS includes the predefined earnings elements Regular Salary and Regular Wages. Depending on your requirements, you may decide to use some predefined elements to represent actual earnings types in your system. If you are an Oracle Payroll user, you will also get other predefined elements. However, predefined elements cannot be changed in any way. For this reason, you may decide to use the predefined elements simply as models for other earnings elements that you define to meet the particular requirements of your enterprise. If predefined elements are not available to represent all the earnings types and salary bases you need for your Salary Administration setup, you must create your own elements for this purpose. Salary BasisWhen your elements for use in Salary Administration are in place and you have defined links for them, you associate an element with each salary basis in use in your enterprise. The salary basis establishes the duration for which a salary is quoted, such as, hourly (for example, 1,000 yen per hour) or annually (for example, 18,000 pounds per year). The salary basis is not necessarily the same as the pay frequency. For example, an employee with an hourly pay rate can have the salary basis Hourly Salary, but can have an assignment to a weekly payroll and therefore have a weekly pay frequency. Note: You cannot use the Element Entries window or BEE to make entries to any elements that are associated with salary bases. You must use the Salary page to enter and maintain entries for the element. Elements and Salary Basis for Payments Salary ComponentsSalary changes can be broken down into two or more components, to reflect different reasons for the change. You can approve each component of the proposal separately. Ten salary components are predefined, as shown in the following table. You can create as many additional components as you require. However, only ten components can be displayed in the Salary Management folder. If you want your new components to be displayed in the folder instead of the default components, you must update a view. This task is for system administrators.
Setting Up Salary AdministrationUse the Salary page to manage efficiently the basic remuneration that employees receive.
Creating a Salary ElementYou need at least one salary element for each salary basis in your enterprise. If predefined elements exist in your localization, you might decide to use these. If your localization does not include predefined elements, or if the predefined elements are insufficient or inappropriate, you must create these elements. You create a salary element in the Element window. US and Canada Payroll only: If you decide not to use the predefined Regular Salary and Regular Wages elements, create your own elements using the Earnings window, rather than the Element window. Mexico and UAE only: Use the Element Design Wizard to create your own elements, rather than the Element window. To create a salary element
Linking the Salary ElementLink the salary elements to components of employee assignments to establish employee eligibility for the elements. Use the Element Link window to link the salary element. To link the salary element:
Validating Salary EntriesThere are two ways to validate salary entries:
To validate salaries against grade rate ranges:
To validate salaries using input value validation:
Creating Salary ComponentsYou can create as many additional salary components, as you require. However, only ten components can be displayed in the Salary Management folder. If you want your new components to be displayed in the folder instead of the default components, you must update a view. To create new salary components to display in the folder:
Defining a Salary BasisUse the Salary Basis window to define a salary basis for each salary element to be used for salary administration. This establishes the duration for which a salary is quoted, for example, hourly, monthly or annually. To define a salary basis
Salary AdministrationStarting Salary and Salary ProposalsUse the Salary page to enter starting salary amounts for new employees, which can be explicitly approved or receive approval automatically. You can enter a proposed salary change for a current employee at any time. You can enter a salary proposal as:
To hold multiple reasons for a starting salary or a salary change, you break down a proposal into two or more components. Each component represents a different reason for changing the salary. You can define as many reasons as you require using the Lookup Type PROPOSAL_REASON. Examples of components are Merit Award and Cost of Living Increase. Optionally, you can rank the employee to track their performance in the future or consider their performance rating to assist you in proposing a salary change. You can enter grade rate ranges against which the application validates salary proposals, if required, when you set up salary administration. You can also use Compensation Workbench to allocate compensation awards and propose changes to salary components. See: Compensation Workbench for further details. Salary Change ApprovalA salary proposal does not go into effect until it receives approval. If you have recorded multiple components of a salary proposal, you can approve each component independently. When an unapproved proposal exists for an assignment, you must either approve or delete it before you can enter a new proposal. When you approve a salary, Oracle HRMS creates or updates a salary element entry for the assignment. You can view this entry in the Element Entries window, but you cannot change it there. Note: You can approve components, but you may not be able to approve salaries. This is controlled by a menu function set up by your system administrator. Assignment ChangesIf an employee's assignment changes such that it continues to be eligible for the salary element but via a different element link, the existing element entry is ended. No new element entry is created automatically. (This is in contrast to the behavior for other types of element.) You must re-enter and approve the salary proposal following the assignment change. This ensures the integrity of your salary data. Correcting or Deleting a Salary ProposalUsing the Salary page you can:
Salary Related DetailsThe Salary page summarizes and displays information to help you perform informed salary administration all in the same page. You can find information on
Review and Compare SalariesBefore entering salary proposals, you can review the current salaries of comparable groups of employees using the Salary page. You can also view the salary history of an employee and compare employee salary against published compensation survey data for similar jobs and positions in your industry. For other methods of reviewing the current salaries of similar employees, see:Reviewing Current Salaries. Salary SpreadsheetsUsing Web Applications Desktop Integrator (Web ADI), you can download information from the Salary Management folder to a spreadsheet. Here you can manipulate the data to create new salary proposals or to modify existing proposals. You can then upload your revised salary information to the database. If your responsibility permits, you can approve all or selected proposals in the folder. Using Web ADI you can also upload descriptive flex field information. The changes you make in the spreadsheet are checked when you upload them to the database. To minimize errors, follow these rules:
See: Data Download Using Web ADI, Oracle HRMS Configuring, Reporting, and System Administration Guide See: Data Upload Using Web ADI, Oracle HRMS Configuring, Reporting, and System Administration Guide Using the Salary Management FolderUsing the Salary Management Folder, you can select sets of assignments for which you want to enter or approve salary proposals. For each assignment, the folder can display the current approved salary and proposed new salary, including up to ten salary components. Using Web Applications Desktop Integrator (Web ADI), you can download information from the Salary Management folder to a spreadsheet. Here you can manipulate the data to create new salary proposals or to modify existing proposals. You can then upload your revised salary information to the database. If your responsibility permits, you can approve all or selected proposals in the folder. See: Data Download Using Web ADI, Oracle HRMS Configuring, Reporting, and System Administration Guide See: Data Upload Using Web ADI, Oracle HRMS Configuring, Reporting, and System Administration Guide To manipulate salary proposals in a spreadsheet
Approving Multiple Salary ProposalsIf the Approve button is displayed in the Salary Management folder, you can select multiple assignments in the folder and approve them. Note: If the Approve button is not displayed, you cannot approve salaries. This is controlled by a menu function set up by your system administrator. When you approve a salary, Oracle HRMS creates or updates a salary element entry for the assignment. You can view this entry in the Element Entries window, but you cannot change it there. To approve multiple salary proposals
Reviewing Current SalariesBefore entering salary proposals, you can review the current salaries of employees in the same job and country, view the salary history of an employee and compare employee salary against published compensation survey for similar jobs and positions in your industry using the Salary page. There are a number of other ways of reviewing current salaries. Choose the appropriate approach:
Viewing Salary HistoryOracle HRMS maintains a complete history of approved salary changes for current and terminated employees, along with associated performance reviews. Using the Salary History window or the Salary page, you can view the dates, reasons, and amounts of each approved salary change, and of any new salary proposal. You can review the salary history of a current or terminated employee using the Salary page or by running the Salary Review Report. To view salary history
The Salary History window contains a folder. You can enter a query in the folder to reduce the list of salary changes displayed. You can remove, rearrange, add, or resize fields in the folder if you have access to the folder menu. The Change field shows the amount of the salary change, and the Actual field shows the new salary effective from the Change Date. The Hourly, Monthly, Annual, and Payroll fields show the salary prorated to these periods. The Currency Code field shows the currency in which the salary was paid and the Ranking field shows the employee rank. The Mid, Minimum, and Maximum fields show values from the grade rate for the employee's grade. The Comparatio field shows the salary as a percentage of the midpoint defined for the grade rate. Note: Fields are greyed out when there is no previous history, for example, if there is no previous or changed salary. Running the Salary Review ReportUse this report to see current and past salaries, and salary proposals, for some or all of your current or terminated employees. You can restrict the employees to those assigned to a selected organization, job, position, or grade. You can also restrict the report to showing only employees receiving the maximum salary for their grade (defined by the grade rate). You can use the report to show all salaries (approved and proposed) or to show unapproved salary proposals only. You run reports from the Submit Requests window. To run the Salary Review Report:
Compensation SurveysCompensation Survey IdentifiersCompensation surveys enable you to compare your basic remuneration packages against published data for your industry. Using this feature you can record as many compensation surveys as you require, map those surveys to each job and position in your enterprise, and analyze the data to understand how compensation within your enterprise compares with trends in the industry. When you enter the details of a compensation survey using the Compensation Surveys window, you must enter a compensation survey identifier. The identifier filters the survey lines to display only the information relevant to the survey you have specified, which helps you enter data more quickly and efficiently. You use the identifier as the two character prefix to the codes of each of the lookup values you use in the Compensation Surveys window. The identifier you enter on the Compensation Surveys window points to the two character prefix you added to the lookup codes, and the application displays only those lookups that are relevant to the identifier. Note: Ensure the identifier contains two characters, else the application displays an error when entering Job Names. Lookup Types for the Compensation Survey WindowYou set up the values for the fields in the Compensation Survey window using the following user-extensible Lookup Types:
To display the jobs and values specific to each survey, use the compensation survey identifier as the prefix of the lookup codes for these Lookup Types except Survey_Company. For example, you can use the prefix DB at the beginning of all lookup codes you want to display for Dun and Bradstreet surveys. For information about user-extensible lookup types, see: Adding Lookup Types and Values, Oracle HRMS Configuring, Reporting, and System Administration Guide Entering Compensation SurveysThe Compensation Surveys window enables you to enter surveys that compare remuneration levels for jobs in your industry. Survey vendors provide this information in a variety of data formats. You enter data that uniquely identifies the survey in the compensation survey master data. You can record as many different compensation surveys as you require by entering information about the categories your enterprise uses to identify compensation details, such as Region, Industry, Mean Pay, or Fiftieth Percentile. Then for each survey, you can enter the survey results for each job by creating compensation survey lines. Note: The area of the window where you enter the compensation survey line information is a folder. Therefore, you can customize the information by renaming, resizing and re-ordering the fields displayed. You can also create your own folders to display a subset of the information. You can then link compensation survey lines to the jobs, positions, and assignments you use in your enterprise. Using the OBIS Salary Survey report you can then compare how salaries for jobs within your enterprise compare with trends within your industry as a whole. If you are licensed to use Compensation Workbench, then you can also display compensation survey data in Compensation Workbench. By mapping the Compensation Survey detail lines to the applicable jobs, the salary survey data can then be displayed in the Compensation Workbench allocation worksheet to aid your managers when allocating compensation awards to employees. Note: Compensation Workbench displays only the compensation survey type of Salary. Before you enter your compensation survey details you must know your compensation survey identifier. See Compensation Survey Identifiers. You must enter details of your compensation survey in three stages:
To enter compensation survey master data
To enter compensation survey lines defaults
To enter compensation survey lines
Mapping Compensation Survey LinesYou can map compensation survey lines to jobs, positions, or assignments. Mapping survey lines gives you a picture of how the compensation for a given job, position, or assignment aligns with compensation standards in your industry. Note: You set up compensation survey lines using the Compensation Surveys window, see: Entering Compensation Surveys If you have additionally licensed and implemented Oracle HRMSi, you can use the Salary Survey Comparison Workbook to analyze surveys that you mapped to jobs, positions, or assignments in your enterprise, see: Salary Survey Comparison Workbook, Oracle HRMS Strategic Reporting (HRMSi) User Guide Additional Information: See also My Oracle Support Knowledge Document 2277369.1, Oracle E-Business Suite Support Implications for Discoverer 11gR1. You can map compensation survey lines in the Position, Job, or Assignment windows. Choose the Define Survey Map button in the Job or Position window, or the Others button in the Assignment window. If you are licensed to use Compensation Workbench, then you can also display compensation survey data in Compensation Workbench. By mapping the Compensation Survey detail lines to the applicable jobs, the salary survey data can then be displayed in the Compensation Workbench allocation worksheet to aid your managers when allocating compensation awards to employees. Note: Compensation Workbench displays only the compensation survey type of Salary. To map a compensation survey line
Grades and Pay SetupGrades and Grade StructuresGrades are normally used to record the relative status of employee assignments and to determine compensation and benefits, such as salary, overtime rates, and company car. Using Grades to Compare RolesYou can define one or more valid grades for each job or position. You enter this information in the Valid Grades window, which opens from the Job window or the Position window. When you enter a grade assignment, the list of grades shows which ones are valid for the job or position you select. Grades can have different levels of complexity, which need to be represented in the overall structure of the grade. In its simplest form, a grade can be a single character, or number, in a logical sequence. For example:
By adding a second segment to the grade name, you can identify sub-grades, such as:
A more complex structure could be used to distinguish grades for different staff groups, such as:
In this example, there are three segments in the grade name. A grade is the combination of segments you define. You set up the segments and their valid values using the Grade Name Key Flexfield. Normally this is done by the system administrator. See: User Definable Key Flexfields, Oracle HRMS Configuring, Reporting, and System Administration Guide Recognizing Your Grade Implementation ModelThere are several models for grade implementation that reflect common approaches to grade-related compensation. Oracle HRMS supports the following models
Once you have identified the models that most closely resemble your grade and compensation model, you can determine how to configure your grade information in Oracle HRMS. Model 1: Individual PayIf your enterprise uses this approach, you process salary updates manually and grade changes do not trigger salary administration changes. Commercial organizations frequently use this model. Oracle HRMS supports this model with grade rates, salary administration and a salary basis. See: Models of Pay Administration: Model 1 Individual Pay Model 2: Group Pay - Common Pay ScaleIn this model, group pay is based on a national or common pay scale for different grade groups. The enterprise uses a single reference table (the pay scale) which comprises a series of points in a predefined sequence. Every grade or grade progression point in the organization maps to a point on that pay scale, enabling the organization to compare multiple grade groups to a single set of values. Typically, the employee receives a salary update when they move to another grade or step. This approach is often used by public-sector type organizations, for example, in the education and healthcare sectors. The points on the pay scale map to values in one or more additional tables. If your enterprise records multiple rates for any single point on a pay scale, you use multiple tables. The following graphic shows four grades in an organization (IT1, IT2, IT3, and IT4). Each grade comprises between two and four progression points. Each progression point maps to a point on the national pay scale. This organization needs to record both annual salaries and also its hourly overtime rate. Therefore the same pay scale is used by two different tables. Example: Group Pay - Common Pay Scale If your enterprise uses this model, you can use pay scales to create one scale rate (per table) to record multiple values for each grade step. See: Non-automatic Step Progression Approach To progress your employees automatically (and make automatic salary updates when they move from one grade or step to another), use Grade/Step Progression. See: Grade/Step Progression Approach Model 3: Group Pay - No Common Pay ScaleIf you use this model, your enterprise uses multiple pay tables to record different rates of pay for people on the same grade. Typically, the employee receives a salary update when they move to another grade or step. Enterprises that use this model pay their employees differently according to predetermined factors. For example, the pay for employees on the same grade step may vary according to their location. The graphic illustrates how an organization uses multiple pay tables to differentiate grade pay by location. For example, Employee A is on the third step of the SE.1 grade in Sydney and is eligible for a different rate of pay from Employee B, who is on the same grade step, but located in the Melbourne office. Example: Group Pay - No Common Pay Scale In the example shown, each pay table uses only one criterion to differentiate the pay that people on the same grade step receive. There could be multiple criteria for a grade, for example, location and currency. If your enterprise varies grade pay in this way, we recommend that you use Grade/Step Progression and criteria salary rates to combine multiple criteria, plus a value for each criterion, to record different rates of pay depending on an employee's individual circumstances. See: Grade/Step Progression Approach Model 4: Criteria-based PayIn this model, you can vary pay by multiple criteria (up to seven). You can select grade as one of the criteria. For example, you could enter pay rates for each performance rating, within each grade, for each job. Similarly, you could enter rates for each grade within each location and according to bargaining unit. You use an API to identify the appropriate pay rate from the rate matrix. There is no provision, in this model, for automatically progressing employees through grades. See: Criteria-Based Rates for Variable Pay, Oracle HRMS Compensation and Benefits Management Guide Implementing Grade Related PayOracle HRMS provides alternative approaches that support the common grade and compensation models, see Recognizing Your Grade Implementation Model. You can use either the Non-automatic Step Progression or the Grade/Step Progression (GSP) approaches to implement grades and associate compensation and benefits to grades. Non-automatic Step Progression ApproachIf you follow the Non-automatic Step Progression approach, you use grade rates, pay scales, scale rates, and grade scales to relate grades or sub-grades to pay. Using grade rates, you can either enter a fixed value for each grade, or minimum, maximum, and mid-point values. You may have a salary administration system in which the actual level of pay normally falls between a minimum and a maximum value for a grade. See: Grade Rates to Relate Pay to Grades. Using grade scales, you can associate each grade with several points on a pay scale, and enter compensation values for these points. You may be using a step based system of progression points within grades, in which each point has a fixed value in a pay schedule or table. In Oracle HRMS this is a pay scale. See: Pay Scales to Relate Pay to Grades Grade/Step Progression ApproachIf you use the Grade/Step Progression approach, you use the Grade Ladder to group together grades (and grade steps) and then define system-based rules for their progression. Grade/Step Progression enables you to move large numbers of employees from one grade or grade step to the next, and update their salaries automatically. GSP also gives you the ability to vary employee pay depending on employees' individual circumstances through the use of criteria salary rates. See: Grade/Step Progression See: Administering Grade/Step Progression Additional Information: Self-service managers can view and update the grade step and grade point of their employee's salary. See: Compensation Workbench section of Self-Service Function, Oracle HRMS Deploy Self-Service Capability Guide Non-automatic Step Progression and Grade/Step Progression - A ComparisonYou may choose to use either of the above features to manage grades and pay depending on the requirements of your organization. This section gives a comparison of the two approaches. If you choose to administer grades and pay in your enterprise without implementing grade ladders, you can:
Using the Grade/Step Progression approach, you can administer employee progression and salary management automatically. The Grade/Step Progression features support:
Grade Rates to Relate Pay to GradesIn Oracle HRMS, you can set up a table of values related to each grade. These are called grade rates. You can enter a fixed value or a range of valid values for each grade. For example, you might define a salary rate and an overtime rate of pay for every grade, with minimum, maximum, and midpoint values. Both rates would be in monetary units. However, you can also define rates with non-monetary units, such as days, hours, or numbers. These grade rates serve only as a guideline to validate that the salary you propose for an employee on a certain grade is appropriate for that grade. You typically use this approach if you do not follow the grade/step progression approach to grades and pay implementation. If you want to automatically update salaries using grade rates, you can use the grade/step progression process. You can upload grade rate values that you created using the Grade Rate window to create default salary rates for grades in a grade ladder. However, once you have uploaded any existing rates, we recommend that you use the Total Compensation Setup Wizard to maintain salary rates for use in Grade/Step Progression, see: Setting Up Grade/Step Progression. Grade rates are datetracked and this means that you can keep the history of the actual values you use. You can also set up rate values at a future date and be sure that this information will automatically take effect on the date you set, and not before. You can use your grade rate values:
The salary administration process validates salary proposals automatically against the appropriate grade rate. You can use formula validation to check other compensation entries. Grade rate values can be linked directly to currencies. When you enter a monetary value for a grade rate you can associate a currency with this value. Automatic Database Item CreationWhen you save your definition, an automatic process creates corresponding database items that formulas can access. See: Dynamic Database Items, Oracle HRMS FastFormula User Guide Pay Scales to Relate Pay to GradesIf you are involved in negotiating pay levels with staff or union groups, you may be using a system of grade steps or points with specific values of pay for each step, or point. For example, you may have negotiated different pay scales with different union groups. Or, you may have negotiated a single set of pay points for all of your employees. Typically, employees are placed on a step within their grade. They move up the steps for the grade by a periodic incrementing process. This process might run automatically at a fixed time each year or it might be based on a review process specific to the employee. In Oracle HRMS you set up a pay scale to show the separate points and the value negotiated for each point. You can set up any number of pay scales, for example for negotiated pay scales with different unions. Scale RatesYou create a rate and enter a fixed value for each progression point on a pay scale. You can create as many rates as you require, such as one for a shift allowance, and another for overtime. Notice that, unlike grade rates, you can only enter a fixed value for each point; you cannot enter a range of valid values. The values are datetracked so that you can keep the history of the actual values you use. You can also set up rate values at a future date and be sure that this information will automatically take effect on the date you set, and not before. You define rates in monetary units, or as integers, numbers, days, or hours, in various formats. For example, you can define a rate in hours to specify the maximum number of overtime hours that can be worked per week. Scale rate values can be linked directly to currencies. When you enter monetary values for a scale rate you can associate a currency with these values. Automatic Database Item UpdateWhen you define rates, an automatic process creates corresponding database items that formulas can access. See: Dynamic Database Items, Oracle HRMS FastFormula User Guide Relate Grades to Progression PointsA pay scale defines a complete set of progression points. You can associate a subset of these points with each grade. The group of points valid for a grade is called a grade scale. Each point in the grade scale is called a step because it represents the steps for incrementing an employee's pay. The steps must follow the sequence of points on the pay scale but they can jump several points, if appropriate to the specific grade. Note: Grade scales are datetracked. You can create pay scales and associate grades to progression points on a pay scale using either the Scale Rate and Grade Scale windows or the Total Compensation Setup Wizard depending on whether you implement the non-automatic step progression approach or the grade/step progression approach in your enterprise. You can upload scale rate values that you created using the Scale Rate window to create default salary rates in a grade ladder. However, once you have uploaded any existing rates, we recommend that you use the Total Compensation Setup Wizard to maintain salary rates for use in Grade/Step Progression, see: Setting Up Grade/Step Progression. Grade/Step ProgressionGrade/Step Progression is a business process that enables you to move large numbers of employees from one grade or grade step to the next, in an automated, bias-free way. You do this by defining how employees become eligible for progression and the details of the grade or step to which they are eligible to progress (including the rate of pay associated with the proposed step or grade). Then, you run a pre-process to check which employees are eligible for progression according to your rules. This triggers a post-process that either progresses eligible employees automatically, or identifies them as eligible so that you can approve their progression manually (depending on how you set up Grade/Step Progression). If you have set up Grade/Step Progression to apply automatic salary updates, the application makes these salary changes and passes them to your payroll. In order to understand Grade/Step Progression, you need to understand the following key concepts:
Grade LadderAt the centre of grade/step progression is the grade ladder. You use the grade ladder to:
The graphic below illustrates the types of progression the grade ladder supports: As shown in this graphic, you can set up a grade ladder to progress employees in one of the following three ways:
Note: You can only progress employees within the same grade ladder, and not across different grade ladders. You set up the grade ladder using the Total Compensation Setup Wizard. This wizard guides you through the Grade Ladder setup pages and the tasks you must perform to create the grade ladder. French Users For a public sector type organization, you set up the grade ladder using the French Public Sector Corps business area in the Total Compensation Setup Wizard. When you create a grade ladder, Oracle HRMS creates a corps with the same name as that of the grade ladder. You can then set up the corps details. Note: In a public sector type organization, the grade ladder is the corps and you can progress employees within and across different grade ladders. Salary RatesGrade/Step Progression enables you to record the pay rates associated with grades and steps (and to make the necessary salary changes when an employee progresses from one grade or step to the next.) If you are using Grade/Step Progression, these pay rates are known as salary rates. You can enter two types of salary rate:
Default Salary Rates Default salary rates represent a single set of values for one grade. For example, if you enter minimum, maximum, and mid-value default salary rates for the grades on your grade ladder, the rate for every assignment on that grade must fall within the specified range. Or, if you are using grade steps, the default salary rate you define for each step applies to every assignment on that step. Criteria Salary Rates Criteria salary rates represent different sets of values for the same grade or step. If your enterprise compensates its employees using a group pay model (but without a common pay scale), then you can use criteria salary rates to vary the rates that you pay employees on the same grade. See: Recognizing Your Grade Implementation Model For example, your enterprise may use the same grades and steps in all its office locations. However, differences in cost of living mean that you pay your employees different amounts depending on where they work. To enable you to vary grade and step pay in this way, you use criteria sets and criteria salary rates. If your enterprise varies pay by location only, you could create one criteria set for each location (for example, one for Melbourne, one for Sydney, and one for Perth). Each criteria set would include just one criterion (the location name). You can use any of the following criteria in your criteria sets:
See: Eligibility Profile Criteria for more information about these criteria Important: You can use the above criteria only to create criteria sets for use in Grade/Step Progression. If you use other criteria, the variable rate profile is available as a criteria set in the Total Compensation Setup Wizard, but it contains no criteria. Having defined unique criteria sets, you can enter the salary rates for each grade and/or step that use different rates of pay. The application identifies employees who are on the grades (or grade steps) that meet the criteria in your criteria sets. If they meet the criteria, they are eligible for the criteria salary rate. If they do not meet the criteria (for example, they work in the Auckland office, where grade pay does not vary by location), they are eligible for the default salary rate. If your organization does not use variable rates of pay for the same grade, you need to use only default salary rates and do not need to define criteria salary rates. Reuse of Existing Grade Rates and Scale Rates You can upload grade rate and scale rate values created in the Grade Rate and Scale Rate windows to create default salary rates. However, once you have uploaded any existing rates, we recommend that you use the Total Compensation Setup Wizard to maintain salary rates for use in Grade/Step Progression. Note: If you are not using Grade/Step Progression, you can define grade and scale rates using the Grade Rate and Scale Rate windows only. French Users In a public sector type organization, Oracle HRMS derives salary rates from the pay scales that you define. It calculates the salary using the Grade and Step Rate method that uses the index values in the Global Table of Indices - Gross Index (IB) and Increased Index (INM). For a grade, the application derives the salary rates from the increased index in the Global Table of Indices and the legal indemnity rates, in case of legislative pay scales. It uses the salary rate directly, in case of exception pay scales. As you create the pay scales and then define the grade steps from the progression points, you do not have the option of using progression points for the grade ladder. Progression RulesTo progress employees using Grade/Step Progression, you need to define how a person becomes eligible for progression. You do this using eligibility profiles, which you can attach at grade ladder, grade, or step level:
Note: When you attach an eligibility profile to a grade, you can specify if you want the profile to apply to this ladder only, or to every other grade ladder using this grade. You can only attach step-level profiles to the selected grade ladder. A profile contains one or more criteria that an employee must meet to become eligible for progression. If their current grade or step is associated with multiple profiles, they must meet the criteria in any mandatory profiles and at least one of the optional profiles For example, you may want to specify that anyone on this grade ladder must have been on their current grade or step for at least two years before they are eligible for progression, and each grade has additional rules for progression. To address this, you could define the following two rules:
You can reuse the same eligibility profiles in other grade ladders, grades and steps. You can define eligibility profiles using either the Participation Eligibility Profiles window or directly from the Total Compensation Setup Wizard, then attach them to grade ladders, grades, or steps in the Total Compensation Setup Wizard. If you set up your grade ladder to rank employees on the basis of the eligibility criteria they satisfy, you must assign scores to the eligibility criteria, using the Participation Eligibility Profiles window. The application computes scores for people, on the basis of applicable eligibility criteria, to arrive at a rank for each person. Manual Approval An employee may be eligible for progression to one or more grades or steps. Based on the progression rules you defined, the application progresses the employee automatically to the appropriate grade or step. If your grade ladder uses manual approval, and the employee is eligible for more than one grade or step, the application proposes the default progression and marks it on the Approvals page. If you have set up your grade ladder to rank employees to determine the people you want to progress from a group of eligible employees, the application displays the ranks and the computed scores of employees of that grade ladder in the Approvals page. If you have enabled Workflow for a grade ladder that uses manual approval, the application notifies the managers of the employee for approval of the proposed progressions. The Grade/Step Progression process determines the default grade or step by applying the following rules:
French Users In a public sector type organization, you can define progression within corps and across corps based on the career path and using the appraisal scores, ranks, and quota restrictions. You can move civil servants across corps if they satisfy all the eligibility conditions for the corps, and the seniority requirements defined for the career path. Grade/Step Progression and the Total Compensation Data ModelThe Grade/Step Progression process maps the grade ladder structure to the Total Compensation data model. When you create grade ladders, grades, steps, progression points and salary rates using the Grade Ladder Setup pages, the system creates corresponding objects, such as programs and plans. The object mapping is shown below:
Caution: You can create the eligibility profiles (used for progression rules) using the Participation Eligibility Profiles window. However, you must create all other Grade/Step Progression objects using the Total Compensation Setup Wizard . Unless you have extensive knowledge of the Total Compensation model and Plan Design setup, we strongly recommend that you perform all ongoing grade ladder administration and maintenance using the Total Compensation Setup Wizard. The following graphic illustrates the grade ladder structure within the Compensation Hierarchy. Mapping the Grade/Step Progression structure to the Total Compensation data model enables the automatic progression of grades and steps, and optionally, automatic updates to salary rates. For more information on the Compensation Hierarchy, see: Plan Design If you are not using Grade/Step Progression, you can create your grade, step, progression point, and pay rate information using the Grade Rate, Pay Scale, Scale Rate and Grade Scale windows. This will not create corresponding compensation objects. Setting Up a Grade LadderYou set up a grade ladder using the Total Compensation Setup Wizard. The wizard guides you through the steps for creating a new grade ladder or updating an existing grade ladder. Caution: You can perform many of the grade ladder setup tasks using either the regular application windows or the Total Compensation Setup Wizard. However, Oracle strongly recommends that you use the Total Compensation Setup Wizard unless there is a specific instruction to use an application window. You should use the application windows only if you have extensive knowledge of Total Compensation data model and experience in plan design setup. There are many dependencies in grade ladder design that you may set up incorrectly if you do not use the Total Compensation Setup Wizard. You can, however, use the Variable Rate Profiles window to set up variable rate profiles for use in Grade/Step Progression criteria sets. You can save your work at any stage of the grade ladder setup process and make changes to a completed grade ladder at any point. Grade/Step Progression uses the grade ladder setup that is valid at the time of running the grade/step progression process. For example, if your existing grade ladder uses automatic approval and you change it to use manual approval on 01-JAN-2003, progression that occurs after that date uses manual approval. The application does not, however, allow you to remove a step or a grade from a grade ladder if employees exist on that step or grade.
Defining a GradeYou define a grade in the Grades window. If you intend loading historic assignment details into Oracle HRMS, make sure you enter valid start dates for your grades. You cannot assign an employee to a grade before the start date of the grade. Tip: Consider using a fixed date as a default for your initial setup, for example, 01-JAN-1901. This will simplify your data-entry. To define a grade:
Entering Grade Code InformationYou must record the grade code to enable the Authorised Pension Administration Centre to process pension payments according to the employees' grade. The Grade Code Interface files reference in the PenServer grade code information. Use the Grades window to record the grade code details as additional information for the grade. To enter grade code information
Deleting GradesTo remove a grade from the list of grades to which employees can be assigned:
To delete a grade entirely from the system:
Setting up Grade Rates, Pay Scales, Scale Rates, and Grade ScalesDefining a Grade RateYou define grade rates in the Grade Rate window. Grade rate values are DateTracked and you must ensure you use the correct date to create your initial set of values. If you intend loading historic grade rate details into Oracle HRMS, make sure you enter the correct start date for all your history. To define grade rates
Defining a Pay ScaleYou define a pay scale, which is a set of progression points for compensation, in the Pay Scale window. Pay scales are used commonly in government and regulated or unionized enterprises where actual values of pay are defined as a 'pay scale', a 'schedule', or a 'spine'. Characteristics of this functionality are:
You can have any number of different pay scales in Oracle HRMS. Each scale has its own set of points which may be characters or numbers. To define a pay scale:
Defining Scale RatesUse the Scale Rate window to define a scale rate. Use the correct date to create your initial set of values. If you intend loading historic pay scale values into Oracle HRMS, you must use correct dates for all your history. To define a scale rate:
Relating Grades to Progression PointsUse the Grade Scale window to relate grades to progression points. A grade can have any number of steps. Steps do not always have the same interval as the pay scale points. For example, you may have a pay scale with points from 1 to 10, and a Grade which has 5 steps with points in the sequence 3, 5, 7, 8, and 9. To create a grade scale
To delete a grade scale
Grades and Pay AdministrationGrades and Pay AdministrationOracle HRMS enables you to implement grades and pay in your organization in two ways. Depending on the requirements of your enterprise you may use either the Grade/Step Progression approach or implement grades and pay without using grade ladders. Administration of grades and pay in your enterprise varies depending on the approach you have implemented. Administering Grades and Pay (Without Using Grade Ladders)After you have manually set up your grades, grade rates, pay scales, and grade scales to suit your enterprise, you first assign employees to the appropriate grades using the Assignment window. See: Entering an Assignment (Assignment Window), Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide If applicable, you can place the employee on a grade step on the associated grade scale, using the Grade Step Placement window, see: Placing an Employee on a Grade Step These actions do not update employee salary with the appropriate grade rate or scale rate values. You would have to update the element entries separately or use the Salary page to propose and approve salaries. See: Starting Salary and Salary Proposals Incrementing Grade Step PlacementsTo manually increment grade step placements you use the Grade Step Placement window. To automate it, you run the Increment Progression Points process. In both cases the application does not update the salary element. You need to write an Oracle Payroll formula so that a change in grade step placements updates salary elements. Before you run the process, you must select the Auto Increment box, in the Grade Step Placement window, for the Increment Progression Points process to process an assignment. You can also specify the number of steps that the assignment should increment by. You may choose to run the Increment Progression Points process in the report only mode before choosing whether to actually run the process. The Increment Progression Point process does not progress an employee beyond the ceiling point of the current grade. If employees are eligible for increments beyond the grade scale ceiling, the application highlights these in the Employee Increment Exception report. See: Increment Progression Points Process Updating Grade Scale in the Assignment WindowWhen you place an assignment on a grade scale and then set up grade step placements for that assignment, any actions you then take to update the grade scale in the assignment window, link to the grade step placement dates to ensure that the two records match. For example, an assignment has a grade scale valid from 1 January 2000, through until the end of time, with grade step placements starting on 1 January 2000, 1 January 2001, 1 January 2002. If on 1 February 2001, you update the grade scale, the grade step placement change on 1 January 2002 becomes invalid, as this refers to the old pay scale. When placing an assignment on a new grade scale, the application automatically inserts an end date for the current grade step placement. The application places the assignment on the minimum grade step placement for the new grade scale, with the Auto Increment Number field left blank and the Auto Increment check box unchecked. The application adjusts grade step placement end dates or warns you about future changes, when you update a grade scale using the assignment window in the following circumstances:
Note: The application does not provide a warning in this circumstance.
Should you choose to continue in these circumstances, the process inserts the new minimum grade step for the new grade scale Changing Grade Types for an AssignmentWhen updating an employee's assignment you can switch from a grade that is related to a pay scale, to one that is not. The application displays a warning message that indicates what you are about to do and asks you to confirm you want to proceed. If you do proceed, then any future-dated grade step records for the assignment are deleted. This means that if you want the future records to remain then you must use the Grade Step Placement window to reinstate the future-dated grade step information. Note: You cannot change grade types using the People Management templates. Scale Rates and Salary AdministrationIf you are holding salary values as a scale rate, you should not also enter them in a salary element using Salary Administration. Instead you view an employee's salary in the Grade Step Placement window, and change it by incrementing the grade step placement of the assignment. Such increments, or changes to the scale rate, would not affect salary element entries for employees. You would have to update these entries separately. Use scale rates for employees whose salaries are determined by their grade step placement. Use Salary Administration for employees for whom you determine salary on an individual basis. Administering Grade/Step ProgressionIf you have implemented the Grade/Step Progression solution in your enterprise you perform the various tasks explained in this section as part of your grades and pay administration Once you have set up your grade ladders and added all the existing grades to one or more grade ladders, you are ready to start the progression process. See: Setting Up Grade/Step Progression. Employee Enrollment and Progression ProcessTo enroll your employees on the Grade/Step Progression process, you need to manually assign a grade ladder to employee assignments using the Assignments window. See: Entering Additional Assignment Details (Assignment Window), Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide If the grades you have assigned to certain assignments are on the default grade ladder for your business group, then you need not manually assign a grade ladder to such assignments. You can run the Batch Enrollment - Grade/Step Progression process to update the appropriate assignment records with the default grade ladder name and create benefits enrollment records for employees who are on the default grade ladder. See: Running the Batch Enrollment - Grade/Step Progression Process You then run the Participation Process: Grade Step to begin the process for the progression of employees. Then, if your grade ladder is set up for automatic progression, and no errors are reported, this triggers the Grade/Step Progression post-process. If your grade ladder uses manual progression, then you need to approve or reject eligible employees using the Approvals: Grade/Step Progression page and run a process to update employee assignments. Before you manually approve or reject the proposed progressions, you can download the progression details into a spreadsheet to distribute it to managers for their opinion or approval, for example. You can also modify the proposed rank, salary change date, and progression date for employees in the spreadsheet, and upload the modified information into the application using Web Applications Desktop Integrator (Web ADI). If your grade ladder uses Workflow to notify managers for the approval of proposed progressions, you must run the post-process after the managers have approved the proposed progressions. See: Running the Participation Process: Grade Step process Approving and Rejecting Grade/Step Progression Processing Employees Progressed Manually Rank Employees for Grade/Step ProgressionIf you set up your grade ladder to rank employees to determine the most eligible employees to progress, then you must run the ranking process to determine the ranks of the employees on a grade ladder. The ranking process computes the ranks of all the employees on the basis of their total scores for the eligibility criteria they satisfy. See: Running the Rank Employees for Grade/Step Progression process Perform Mass Updates of Grade and Step RatesAs part of your ongoing maintenance of a grade ladder you can update the existing grade/step rates on it. If you want to update all the rates you attached to a grade ladder by a specified percentage or amount, in a single step, you can use the Mass Update feature. All the Update Rates pages in the Total Compensation Setup Wizard have a Mass Update region where you can:
You define the default and criteria salary rates for your grades or grade steps in Task 5: Rates on the Grade/Step Progression Task List, see: Setting Up a Grade Ladder . Synchronize Salary Rates with Underlying Grade or Step Rate ChangesYou may want to update employee salary not only when the employee moves to a new grade or step but also when there is a change to the underlying grade or step rate, because of a cost of living adjustment, for example. Using the Recalculate Participant Values: Grade/Step Progression process you can synchronize an employee's salary with the changes in the grade or step rates that apply to the employee. This process applies only to those employees whose grade ladder supports automatic salary updates. See: Running the Recalculate Participant Values: Grade/Step Progression process Clearing Temporary Data from the Staging TablesDuring the grade ladder setup, the application stores temporary data that it uses to update and eventually create the grade ladder. Once you have created the grade ladder, the application moves the data to the Benefits HR table and you no longer require the temporary data. You can clean up the staging tables to save storage space, after you have created the grade ladder by running the Purge GSP Transactions in Staging Table. See:Purge GSP Transactions in Staging Table Process. Manual Progression and Salary ChangesYou can make manual changes to an employee's grade step assignment using the Assignment window. If you did not set up your grade ladder to automatically update employee salaries with a grade or step change, you must make salary changes manually. Manual Removal of an Employee from a Grade LadderYou may need to remove an employee from a grade ladder because they were on the wrong ladder. To do this, you just change their grade ladder in the Assignment window. Failed Progression due to Future-dated Salary ChangesIf progression fails due to future-dated salary proposals, you must progress the employee manually in the Assignment window. Manual overrides of automatic progressions and system-updated salariesTo make manual overrides of automatic grade/step progressions, use the Assignment window. If you have set up your grade ladder to allow manual override of automatically updated salaries, you can override employee salaries using the Salary page. If you do not choose this option, you cannot update the system-updated salaries. See: Entering an Assignment, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide Entering Additional Assignment Details, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide Increment Progression Points ProcessYou run the Increment Progression Points process to automatically increment the grade step placements of your employees. The process increments the grade step placement of an assignment only if:
Specifying the Assignments to ProcessThe parameters in the Increment Progression Points process enable you to be specific, when detailing the assignments to be included in the process. For example, you are able to specify that a particular organization hierarchy or part of that hierarchy is selected to be part of the process when it is run. When you run the Increment Progression Points process, you can choose to update employee progression point information or run the process in report only mode. When you run the process in report only mode, no changes are made to employee information but you can see what would happen if the full process is run. See: Incrementing Grade Step Placements Business RulesYou can select people to be incremented according to specific business rules. You can choose to enforce the following business rules to the increment process:
For each rule, you specify a start and end date, for example, if you want to increment all those people who have a birthday in January and are between the ages of 18 and 21, you specify a date range of 01-JAN-2001 to 31-JAN-2001 and an age range of 18 to 21. You enter a dependent date to specify the actual date that the increment is performed. The four dependent date categories are as follows:
Note: The dependent date, is used by the process to check if the assignment is on a grade scale and has a grade step. If the assignment has a grade step on the effective date but not on the dependent date, no increment is given. See: Incrementing Grade Step Placements Increment Progression Points ReportsWhen you run the Increment Progression Points process two reports are automatically created. You may choose to run the Increment Progression Points process in Report Only Mode before deciding whether to actually run the process. Running the process in Report Only Mode enables you to see the process results before the process is actually run. The two reports produced by the Increment Progression Points process are:
Placing an Employee on a Grade StepUse the Grade Step Placement window to place an employee on a grade step. When you open this window, information about the grade, grade ladder, and scale appears automatically. By default, the ceiling point is the one you defined for the grade. However, you can enter a special ceiling point for individual employees in the Assignment window. Note: Placing an employee on a grade step does not automatically update the salary element To place an employee on a grade step
Incrementing Placements Automatically (without using grade ladders) If you want to automatically increment the employee's placement, follow steps 4 and 5, otherwise go to step 6.
Entering Further Grade Step Information (French Users Only)
Viewing Grade ComparatiosThe View Employee Grade Comparatio window compares the compensation values you enter for employees with the minimum, maximum, and mid values you define for their grades. To view employee grade comparatio values:
Using Grade/Step ProgressionRunning the Batch Enrollment - Grade/Step Progression ProcessIf you have set up a grade ladder as the default grade ladder for your business group, then you can run the Batch Enrollment - Grade/Step Progression process to update the appropriate assignment records with the default grade ladder name and create benefits enrollment records for employees who are on the default grade ladder. For the default grade ladder to apply to an assignment, the grade you entered for the assignment must be attached to the default grade ladder and you must not have assigned any other grade ladder to the assignment using the Assignment window. Use the Submit Request window. To run the Batch Enrollment-Grade/Step Progression Process
Running the Participation Process: Grade StepThe Participation Process: Grade Step (the Grade/Step Progression pre-process) evaluates your employees one at a time, to determine the set of grades and/or steps to which an employee is eligible to progress (and marks the default grade or step when more than one eligible progression exists). When the process completes, it triggers automatically a post-process that progresses employees to their new grade or step and makes the salary updates as required. You can run this process retrospectively, but if you do so, the application does not process employees with future-dated salary proposal changes and they appear in an exception log. If you wish to process these employees, you must process them manually from the Assignment window by updating their grade or step, and salary. See: Entering an Assignment, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide and Entering Additional Assignment Details, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide We suggest that you run this process once a month. However, if you are an Advanced Benefits user with many life events triggered by person or assignment data changes, you may prefer to run the process more frequently. You run this process from the Submit Requests window. To run the Participation Process: Grade Step
Running the Rank Employees for Grade/Step Progression ProcessIf your grade ladder uses manual approval of proposed progressions, you can set it up to enable ranking of employees so that you can select the most eligible employees from a group of people to progress. The ranking ability thus gives you a fair basis for selection of employees when there are more eligible people than you can progress. If you set up your grade ladder to enable ranking of employees, you must run the ranking process for the employee ranks to appear in the Approvals: Grade/Step Progression page. The ranking process computes the ranks of all the employees on a ranking-enabled grade ladder, on the basis of their total scores for the eligibility criteria they satisfy. You run this process after you have run the Participation Process and before you approve (or reject) the proposed progression using the Approvals page. Use the Submit Request window. To run the Rank Employees for Grade/Step Progression process
Approving and Rejecting Grade/Step Progression (Manual)When you create a grade ladder, you specify the type of approval it uses (its posting style):
If you have set your grade ladder for manual approval, the Participation Process: Grade Step pre-process starts the Grade/Step Progression process, but you must then reject or approve the proposed progressions using the Approvals: Grade/Step Progression page. Setting up your grade ladder for manual approval gives you the additional ability to rank your employees on the basis of their total scores for the eligibility criteria they satisfy, and to use Workflow to notify managers for their approvals for the proposed progressions. If you set up a grade ladder to use ranking, the Approvals: Grade/Step Progression page displays the scores and ranks of all the employees who are on that grade ladder. You can check the ranks of your employees to determine the people you want to progress from all the proposed progressions. You must have run the Rank Employees for Grade/Step Progression Process for the employee ranks to display in this page. To approve or reject progressions manually
Process Employees Progressed ManuallyIf you set up your grade ladder to perform manual progression, then you need to run the Process Employees Progressed Manually process for the manual progressions to come into effect. You run this process after you have approved or rejected the proposed progressions using the Approvals: Grade/Step Progression page. Use the Submit Request window. To run the Process Employees Progressed Manually process
Running the Recalculate Participant Values: Grade/Step Progression processUsing the Recalculate Participant Values: Grade/Step Progression process you can automatically update employee salary, if there is a change in the rates of the grade or step on which you placed the employee. This process applies only to those employees whose grade ladder supports automatic salary updates. Use the Submit Request window. To run the Recalculate Participant Values: Grade/Step Progression process
Running the Purge GSP Transactions in Staging Table ProcessYou run this process to clean up the staging tables of the temporary data, after you have created a grade ladder. During the grade ladder setup, the application stores temporary data that it uses to update and eventually create the grade ladder. Once you have created the grade ladder, the application moves the data to the Benefits HR table and you no longer require the temporary data. Use the Submit Request window. To run the Purge GSP Transactions in Staging Table Process
Incrementing Progression PointsIncrementing Grade Step Placements (Without Using Grade Ladders)If you have not implemented Grade/Step Progression in your enterprise, you can increment grade step placements manually, using the Grade Step Placement window, or automatically, by running the Increment Progression Points process. In each case, the actual salary element is not updated. You can use grade step placements to update salary elements but you need to write an Oracle Payroll formula to do this. However, you are advised not to use Salary Administration to confirm a grade step change, because this means that subsequent changes to the point values would require updates for all the salary records to which they apply. If you run the Increment Progression Points process, you can specify if an assignment will be incremented and the number of steps that a placements grade step is to be incremented by. Any employees who are due increments which are greater than the grade scale ceiling will be highlighted by the application. For example, you may have an employee on step 7 of a grade scale, with a ceiling of 10 steps. If the employee is due an increment of 4 steps, the Exception report shows that the assignment was incremented but a ceiling has been reached. To run the Increment Progression Points process Note: An assignment's grade step placement is incremented automatically only if all the following conditions are met:
Running the Current and Projected Progression Point Values ReportRun this report before running the Increment Progression Points process, to assess its effects. This report shows what changes would be made by the Increment Progression Points process and how much it would cost for a particular scale rate, such as salary, or for all rates. You run reports in the Submit Requests window. To run the Points Values Report:
Running the Employee Increment Results ReportThis report is available for you to run independently in circumstances where you have deleted the original report, produced by the Increment Progression Points process. You run this report after running the Increment Progression Points process. This report gives the actual results of running the process, depending on how you specify the process to run, allowing you to check employee progressions are successful. You run reports in the Submit Requests window. To run the Employee Increment Results Report:
Workforce Intelligence Key Concepts for Salary, Grades, and Pay AdministrationKey Concepts for Salary, Grades, and Pay Administration IntelligenceThe Salary, Grades, and Pay Administration Intelligence reports enable you to compare and contrast salaries among employees working in different circumstances, such as different jobs or organizations, within your enterprise. You can also examine salary trends, or you can view salary details for individual employees. You can set Key Performance Indicators to alert you to critical changes in salaries. Note: These reports will not return data if you have not attached your Grade Rates to a Salary Basis. To enable you to get the most out of the Salary, Grades, and Pay Administration intelligence reports, you need to understand the following key concepts:
Salary CurrenciesThe Salary, Grades, and Pay Administration reports enable you to select the currency on which you want to report. If salaries exist that are not paid in the currency you select, you can include or exclude them from the report. If you include salaries that are not in the currency you select, the reports convert the salary using the general ledger (GL) daily rates. If the report cannot find a valid exchange rate, it ignores the salary. For more information, see Entering A Conversion Rate Type, Oracle HRMS Configuring, Reporting, and System Administration Guide. Salary AnnualizationMost of the reports display salary values as annualized figures. Reports use the salary basis set up for the assignment to calculate the annualized figure. Reports only include the salary values they can convert to an annualized figure. Grade AnnualizationReports display the minimum, mid-point, and maximum payments in a grade range as annualized figures. Reports use the grade annualization factor set up as part of the pay basis to calculate the annualized figure. Salaries and AssignmentsThe Salary, Grades, and Pay Administration reports show salaries for all assignments that satisfy the following criteria. For an assignment to be included in the reports, it must:
Each assignment that matches the selection criteria appears on the report. If an employee has more than one assignment that matches all the criteria, the employee appears more than once on the report. Workforce Intelligence for Salary, Grades, and Pay AdministrationEmployee Primary Assignment with Salary and Grade Rate Detail WorkbookThis workbook enables you to report on employees based on their primary assignment. The workbook output is in a non-legislative specific format, which is useful for global reporting. You can report on employee details, including:
Additional Information: See also My Oracle Support Knowledge Document 2277369.1, Oracle E-Business Suite Support Implications for Discoverer 11gR1. WorksheetsThis workbook has the following worksheets:
Organization Hierarchy WorksheetThis worksheet enables you to report on employee details based on the employee primary assignment (in a non-legislative specific format) for a given organization and its subordinate organizations. Business QuestionsHow much do my employees within each organization earn and how does that compare with their grade rate? Worksheet ParametersYou must specify values for the following parameters:
The worksheet includes those employees who held a primary assignment at the time of the Effective Date, and were employed in the selected organization hierarchy at the time of the Effective Date. Headings and CalculationsThis report uses the following calculations:
Supervisor Hierarchy WorksheetThis worksheet enables you to report on employee details based on the employee primary assignment (in a non-legislative specific format) for a given supervisor and his/her subordinates. Business QuestionsHow much do the employees for a given supervisor earn and how does that compare with their grade rate? Worksheet ParametersYou must specify values for the following parameters:
The worksheet includes those employees who held a primary assignment at the time of the Effective Date, and were assigned to the selected supervisor at the time of the Effective Date. Headings and CalculationsThis report uses the following calculations:
Related Topics Salary, Grades, and Pay Administration Key Concepts Employee Primary Assignment with Salary Detail WorkbookThis workbook enables you to report on employee details based on employee primary assignment, in a non-legislative specific format. This is useful for global reporting. Employee details include:
Additional Information: See also My Oracle Support Knowledge Document 2277369.1, Oracle E-Business Suite Support Implications for Discoverer 11gR1. WorksheetsThis workbook has the following worksheets:
Organization Hierarchy WorksheetThis worksheet enables you to report on employee details based on employee primary assignment, in a non-legislative specific format, for a given organization and its subordinate organizations. Business QuestionsHow much do my employees within each organization earn? Worksheet ParametersYou must specify values for the following parameters:
The worksheet includes those employees who held a primary assignment at the time of the Effective Date, and were employed in the selected organization hierarchy at the time of the Effective Date. Supervisor Hierarchy WorksheetThis worksheet enables you to report on employee details based on employee primary assignment, in a non-legislative specific format, for a given supervisor and his/her subordinates. Business QuestionsHow much do the employees for a given supervisor earn? Worksheet ParametersYou must specify values for the following parameters:
The worksheet includes those employees who held a primary assignment at the time of the Effective Date, and were assigned to the selected supervisor at the time of the Effective Date. Related Topics Salary, Grades, and Pay Administration Key Concepts Employee Salary Change Detail WorkbookThis workbook investigates salary changes over specified periods of time within your organization. The resulting information allows you to:
Additional Information: See also My Oracle Support Knowledge Document 2277369.1, Oracle E-Business Suite Support Implications for Discoverer 11gR1. WorksheetsThis workbook has the following worksheets:
Summary WorksheetThis worksheet enables you to view information about salary changes within your organization. The resulting information allows you to analyze salary changes across all organizations in a Business Group. Business QuestionsWhat are the details of the most recent salary changes for employees? ParametersYou must specify a value for the following parameter:
By Years of Service WorksheetThis worksheet displays salary change information by years of service across organizations. The resulting information allows you to:
Business QuestionsWhat are the details of the most recent salary changes for my employees, by years of service? ParametersYou must specify a value for the following parameter:
By Gender WorksheetThis worksheet enables you to analyze salary change within your organization, by gender. It enables you to analyze differences in salary changes between male and female employees across organizations. Business QuestionsWhat are the details of the most recent salary changes for my employees, by gender? ParametersYou must specify a value for the following parameter:
By Performance Rating WorksheetThis worksheet enables you to investigate the effects of performance ratings on employee salary change across organizations. It enables you to ensure employees are rewarded for performance. Business QuestionsWhat are the details of the most recent salary changes for my employees, by performance? ParametersYou must specify a value for the following parameter:
By Person WorksheetThis worksheet enables you to investigate salary changes for individual employees. Business QuestionsWhat are the details of the most recent salary changes for my individual employees? ParametersYou must specify a value for the following parameter:
Related Topics Salary, Grades, and Pay Administration Key Concepts Employee Salary Change WorkbookThis workbook enables you to report on employee salary change details; for example, the latest salary increment, the effective date of a salary change, the salary level compared to the grade minimum, mid value and maximum value. The details can be shown for a chosen period of time. Additional Information: See also My Oracle Support Knowledge Document 2277369.1, Oracle E-Business Suite Support Implications for Discoverer 11gR1. WorksheetsThis workbook has the following worksheets:
Organization Hierarchy WorksheetThe Organization Hierarchy worksheet enables you to report on employee salary change details by organization hierarchy for a given time period. Business QuestionsWhen did my employees' salaries change, and by how much? ParametersYou must specify values for the following parameters:
The worksheet includes those employees who held a primary assignment, were employed in the selected organization hierarchy, and had a salary change, during the period from your selected Start Date to your selected End Date. You can also enter a value for the following optional parameter:
If you use the Organization Hierarchy Effective Date parameter, the worksheet will use the Organization Hierarchy Version effective on this date to display organization Hierarchy information. This date will affect the output of your worksheet if your selected Start Date and End Date parameters cover more than one Organization Hierarchy Version for your selected Organization Hierarchy. If you do not use the Organization Hierarchy Effective date parameter, the worksheet will default to the Organization Hierarchy Version effective on your selected End Date. Headings and CalculationsThis report uses the following calculations:
Supervisor Hierarchy WorksheetThe Supervisor Hierarchy worksheet enables you to report on employee salary change details by supervisor hierarchy for a given time period. Business QuestionsWhen did my employees' salaries change, and by how much? ParametersYou must specify values for the following parameters:
The worksheet includes those employees who held a primary assignment, were employed by the selected supervisor, and had a salary change, during the period from your selected Start Date to your selected End Date. Headings and CalculationsThis report uses the following calculations:
Related Topics Salary, Grades, and Pay Administration Key Concepts Employee with Tenure Detail WorkbookThis workbook enables you to report on current employee tenure details based on the employee primary assignment in a non-legislative specific format. In addition to the basic employee primary assignment details, you can report on:
Additional Information: See also My Oracle Support Knowledge Document 2277369.1, Oracle E-Business Suite Support Implications for Discoverer 11gR1. WorksheetsThis workbook has the following worksheets:
Organization Hierarchy WorksheetThis worksheet enables you to report on employee tenure details (based on the employee primary assignment in a non-legislative specific format) for a given organization and its subordinate organizations. Business QuestionsHow long have my employees within a given organization hierarchy been working within my enterprise? ParametersYou must specify values for the following parameters:
The worksheet includes those employees currently employed within the selected organization hierarchy, and within the selected employment category. Headings and CalculationsThis report uses the following calculations:
Supervisor Hierarchy WorksheetThis worksheet enables you to report on employee tenure details (based on the employee primary assignment in a non-legislative specific format) for a given supervisor and his/her subordinates. Business QuestionsHow long have employees, reporting directly or indirectly to a given supervisor, been working within my enterprise? ParametersYou must specify values for the following parameters:
The worksheet includes those employees currently employed by the selected supervisor, and within the selected employment category. Headings and CalculationsThis report uses the following calculations:
Related Topics Salary, Grades, and Pay Administration Key Concepts What is the term used for compensation on the basis of a fixed annual rate?A salary (or wage) is a fixed amount paid in exchange for an employee's services.
Which of these are compensation and incentives for employees?Compensation incentives may include items such as raises, bonuses, profit sharing, signing bonus, and stock options. Recognition incentives include actions such as thanking employees, praising employees, presenting employees with a certificate of achievement, or announcing an accomplishment at a company meeting.
Which of the following refers to the extent to which information on the compensation of any individual in an organization is formally made available to other individuals?Pay secrecy refers to the extent to which the compensation of any individual in an organization is secret or the extent to which it is formally made available to other individuals.
How is compensation determined for an employee quizlet?Pay is determined by the employee's output. examples are straight piece-rate system and differential piece-rate system. The employees receives a base wage rate and is awarded additional compensation for the amount of output produced. eg: An employee earns minimum wage plus 10 cent per item produced.
Which of the following statements defines total compensation?Which of the following statements defines total compensation? total compensation. It refers to the overall value of financial compensation plus the value of additional benefits that an organization provides to its employees.
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