Oracle Fusion HCM Workforce Compensation
People use workforce compensation plans to allocate budgets to managers and compensation to groups of people during a compensation cycle. Every organization has different ways of compensating their group of workers on an ad hoc basis or periodically, such as annually, half-yearly, etc. These compensations are not always monetary, but can also include other forms of compensation like stock allocation, perks, etc. To compensate a larger group of employees, an organization needs to release a budget and plan the cycle well in advance. All of these can be done through a fusion workforce compensation plan.
Workers can also be given compensation based on their performance outside the regular cycle without releasing any budget. This form of compensation is called Individual Compensation.
Administering workforce compensation is an iterative process. It involves preparing for the cycle, administering individual and workforce compensation plans during the cycle, and closing the cycle.
Workforce Compensation Roles:
- Compensation Administrator
- Compensation Manager
- Line Manager
- Worker
Role | Base Pay | Individual Compensation and Personal Contribution | Manage compensation budget | Administer and manage Workforce Compensation |
Compensation Administrator  |  |  |  | 1.Manage plan 2.Initiate Cycle 3.Manage and Transfer Data |
Compensation Manager                | Manage Individual Base pay record | Manage Individual Compensation History | 1.Initiate Budget 2.Automaticaly Publish to Line manger | 1.Manage Models 2.Act as a proxy Manager |
Line Manager  | Manage Individual Base pay record | Manage Individual Compensation History | Determine budget amount to distribute or allocate | Allocate compensation view details of performance and Compensation rate |
HR Specialist | Manage Individual Base pay record | Manage Individual Compensation History | Â | Â |
Worker  |  | Enroll and mange Personal |  |  |
Prerequisites for Fusion Workforce Compensation Plan
- Manager hierarchy
- Creating Derived Factor
- Eligibility Profile
- Define Bonus Element
- Create Performance Rating
Fusion Workforce Compensation Plan Setup
1. Create a Compensation Plan
2. Define Plan Foundation
2.1 Configuring Plan Details
2.2. Configure Plan Eligibility
2.3. Configure Plan Cycles
2.4. Configure Plan Hierarchies
2.5. Configure Plan Currency
2.6. Configure Plan Access
2.7. Configure Feedback Survey
3. Define Plan Budget
3.1. Configure Budget Pools
3.2. Configure Budget Display
4. Configure Components
4.1. Configure Compensation Components
4.2. Configure Performance Rating
4.3. Configure Approvals
4.4. Configure Compensation Change Statement (Optional Step)
4.5. Configure Worksheet Display
4.5.1 Enable and Configure Compensation Type Tab
4.5.2 Enable and Configure Approval Type Tab
4.5.3 Enable and Configure Promotions Type Tab
4.5.4 Enable and Configure Communication Type Tab
4.6. Configure Default Worksheet Display
4.7. Configure Alerts
5. Models and Reports
5.1. Configure Modeling
5.2. Configure Report
5.3. Configure Report Dimensions
6. Validation and Processing
Manage Workforce Compensation
1. Adjust Budget
2. Modeling Budget
3. Managing Budget
4. Managing Active Plans
5. Administering Workers
6. Running Batch Processes
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Scenario: The client wants to set up a yearly compensation plan for its entire workforce, with the plan cycle running from January to December each year. Compensation will be given only to full-time employees who have completed one year in the organization. Managers should also be able to allocate bonuses to employees. While the compensation plan is live, managers should be able to evaluate employees’ performance based on a rating scale from 1 to 5. At the end of the cycle, employees will be able to see their compensation letters in the application. Needless to say, higher-level managers will release the budget to lower-level managers.