To configure compensation plan details in Oracle Fusion, you will typically follow a series of steps in the Compensation Management module. This involves setting up various components of a compensation plan, including the plan type, eligibility criteria, and related parameters.
Here’s a step-by-step guide to configuring compensation plan details in Oracle Fusion:
1. Navigate to Setup and Maintenance
- From the Home Page, click on the Navigator icon (hamburger menu) in the top-left corner.
- Select Setup and Maintenance.
2. Search for Compensation Plan Setup
- In the Setup and Maintenance page, use the search bar to look for Manage Compensation Plans.
- Click on the Manage Compensation Plans task from the search results.
3. Select a Compensation Plan
- You will see a list of existing compensation plans.
- If you want to modify an existing plan, find it in the list and click Edit.
- To create a new compensation plan, click the Create or + button.
4. Enter Plan Details
- Fill in the necessary details for the compensation plan:
- Plan Name: Enter a descriptive name for the compensation plan (e.g., “Annual Bonus Plan”).
- Plan Type: Select the type of compensation plan (e.g., Salary, Bonus, Commission).
- Plan Description: Provide a brief description of the plan’s purpose and eligibility.
- Effective Date: Specify the date from which this plan will be effective.
- Currency: Select the currency in which compensation will be calculated.
5. Configure Eligibility Criteria
- In the Eligibility section, specify the criteria that determine which employees can participate in the plan:
- Eligibility Group: You can define specific groups of employees (e.g., all full-time employees, specific departments) that are eligible for the compensation plan.
- Assignment Type: Determine how employees are assigned to the plan (e.g., based on job level, location).
- Additional Filters: You can apply additional filters based on other criteria, such as hire date or performance ratings.
6. Define Plan Components
- Depending on the type of compensation plan, you may need to configure specific components such as:
- Salary Ranges: For salary plans, set minimum, midpoint, and maximum salary levels.
- Bonus Structures: For bonus plans, define how bonuses will be calculated (e.g., percentage of salary, fixed amount).
- Commission Rates: For commission plans, set up the commission structure based on sales or performance metrics.
7. Set Up Administration and Approval Workflow
- Configure how the compensation plan will be administered:
- Approval Workflow: Set up approval levels for compensation increases or changes.
- Notifications: Define notifications to be sent to managers and employees regarding the plan.
8. Review and Save
- After entering all necessary details, review the information to ensure it is correct.
- Click Save or Submit to apply the changes.
9. Test the Compensation Plan (Optional)
- If you want to validate the compensation plan, consider running test scenarios using sample employee data to see how the plan works in practice.
- Review calculations and ensure eligibility rules are applied correctly.
10. Communicate the Plan to Employees
- Once the compensation plan is set up, ensure that employees understand the plan details, eligibility, and any changes that may affect them. This may involve internal communications or training sessions.
Key Considerations:
- Integration with Payroll: Ensure that any compensation adjustments made through the compensation plans are reflected accurately in the payroll system.
- Compliance: Verify that the compensation plan complies with legal requirements and organizational policies.
- Regular Reviews: Periodically review and update the compensation plan to align with organizational goals and market standards.
By following these steps, you can effectively configure compensation plan details in Oracle Fusion, enabling your organization to manage compensation more efficiently and transparently.
Comp Plan Setups- Configure Plan Details