To configure plan cycles in Oracle Fusion for compensation plans, you need to set up the time frames during which compensation processes, such as salary reviews, bonus payouts, and merit increases, will be conducted. Plan cycles define when compensation adjustments occur and how they are managed over a specific period.
Here’s a step-by-step guide to configuring plan cycles 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 Cycles
- In the Setup and Maintenance page, search for Manage Compensation Plan Cycles.
- Click on the Manage Compensation Plan Cycles task from the search results.
3. Select or Create a New Plan Cycle
- You will see a list of existing plan cycles.
- To modify an existing plan cycle, select the plan from the list and click Edit.
- To create a new plan cycle, click the Create or + button.
4. Enter Plan Cycle Details
- Fill in the basic details for the plan cycle:
- Cycle Name: Enter a descriptive name for the cycle (e.g., “2024 Annual Merit Review Cycle”).
- Cycle Type: Specify the type of cycle (e.g., Annual Review, Bonus Distribution, Merit Increase).
- Effective Date: Set the date from which the cycle will be active.
- End Date: Define the closing date for the cycle.
- Plan: Associate the cycle with a specific compensation plan (e.g., base salary, bonus, commission).
5. Define Plan Cycle Periods
- Plan cycles often have different phases, such as budget allocation, manager review, approval, and payout. Define the start and end dates for each of these phases:
- Budgeting Period: The time frame for allocating the budget to departments or managers.
- Manager Review Period: The period when managers review compensation recommendations for their teams.
- Approval Period: When compensation changes are reviewed and approved by upper management or HR.
- Payout Period: When compensation adjustments (e.g., bonuses, salary increases) are applied or paid out to employees.
- For each period, ensure that the start and end dates are clear, with enough time allotted for each phase.
6. Configure Cycle Rules and Guidelines
- Define any specific rules or guidelines for the compensation plan cycle, such as:
- Budget Usage: Rules on how the budget should be used during the cycle (e.g., percentage allocation to each department).
- Eligibility Criteria: Define which employees or groups are eligible for compensation adjustments within the cycle based on performance, role, or location.
- Approval Levels: Set up approval workflows to ensure the necessary levels of management approve any compensation adjustments.
7. Notifications and Alerts
- Set up notifications and alerts for the various stages of the plan cycle:
- Reminders: Automatic reminders for managers and HR personnel when a specific phase is nearing completion.
- Approval Alerts: Notifications to managers or HR when their approval is required during the compensation review process.
- Completion Notifications: Send notifications when the plan cycle is completed and compensation adjustments are finalized.
8. Save and Activate the Plan Cycle
- After configuring the plan cycle, review all the details to ensure everything is correct.
- Click Save or Submit to apply the changes.
- Once the cycle is ready to begin, you may need to Activate it to make it available for use.
9. Test the Plan Cycle (Optional)
- To ensure the cycle is functioning correctly, you can run a test with sample employees and managers to verify that the various phases, notifications, and approvals are working as expected.
10. Monitor the Plan Cycle
- During the active period of the plan cycle, monitor progress through dashboards or reports to ensure that managers are reviewing compensation and budgets as planned.
- Keep an eye on budget utilization, employee eligibility, and approval workflows to ensure everything stays on track.
11. Close the Plan Cycle
- After the plan cycle has run its course and all reviews, approvals, and payouts have been completed, close the cycle to mark it as completed.
- Ensure that any post-cycle reporting or audits are performed to evaluate the effectiveness of the compensation changes.
12. Review and Adjust for Future Cycles
- Once the plan cycle is complete, review the outcomes to identify any areas for improvement in the process. Gather feedback from managers and employees, and make adjustments to the plan cycle configuration for future cycles.
Key Considerations:
- Cycle Alignment: Ensure that the plan cycle aligns with the fiscal year, performance review periods, or other organizational timelines.
- Employee Communication: Clearly communicate the dates and phases of the compensation plan cycle to employees and managers so they understand when changes will occur and what is expected of them.
- Compliance: Make sure the plan cycle follows all legal and regulatory requirements related to compensation.
By following these steps, you can configure plan cycles in Oracle Fusion to manage compensation adjustments efficiently, ensuring a smooth review and approval process across the organization.
Comp Plan Setups- Configure Plan Cycles