Configuring plan eligibility in Oracle Fusion is essential to define which employees are eligible to participate in a specific compensation plan. This ensures that compensation plans, such as bonuses, salary increases, or stock awards, are applied only to the appropriate employees based on predefined criteria like job roles, grades, or locations. Here’s a step-by-step guide to configuring plan eligibility:
1. Navigate to Compensation Work Area
- Go to Navigator > Compensation > Manage Compensation Plans.
2. Open the Compensation Plan
- In the Compensation Work Area, select the compensation plan you wish to configure or create a new one.
- Click on Edit Plan to modify the setup.
3. Go to the Eligibility Section
- Once the compensation plan setup page opens, navigate to the Eligibility section.
- This section allows you to define who will be eligible to participate in the compensation plan.
4. Configure Eligibility Profiles
Eligibility Profiles are a key element used to control plan eligibility. These profiles define the criteria employees must meet to participate in the compensation plan. Follow these steps to configure them:
a) Create a New Eligibility Profile
- Click on Create Eligibility Profile if you want to create a new profile or select an existing one if it’s already defined.
b) Set Eligibility Criteria
- You will now set specific criteria that determine employee eligibility. The criteria can include various employee attributes such as:
- Job: Specify eligible jobs, job codes, or job families.
- Grade: Define the job grades or grade bands that are eligible.
- Location: Define which employees based on their work location are eligible.
- Department: Limit eligibility to specific departments or business units.
- Length of Service: Set a requirement for employees to be with the company for a specific number of months or years.
- Compensation Level: Base eligibility on the employee’s current compensation range or grade level.
- Union Membership: Specify union-based eligibility criteria.
c) Define Inclusion and Exclusion Criteria
- You can define whether to include or exclude certain groups of employees from eligibility:
- Inclusion: Automatically include employees who meet the defined criteria (e.g., all employees in a certain job role).
- Exclusion: Exclude employees based on other criteria even if they meet the inclusion rules (e.g., exclude part-time employees).
d) Add Multiple Criteria
- You can add multiple criteria to refine the eligibility profile. For example, you might combine criteria such as “Employees in the Sales Department” and “with over 1 year of service” to create a more specific eligibility profile.
5. Assign Eligibility Profile to the Compensation Plan
- Once the eligibility profile is created, return to the Eligibility section of the compensation plan.
- Assign the newly created or existing eligibility profile to the compensation plan.
- This will apply the eligibility criteria to the entire plan, meaning only employees who meet the profile’s conditions will be included in the plan.
6. Override Eligibility for Specific Employees (Optional)
- If needed, you can override eligibility for specific employees directly within the compensation plan. This might be useful for exceptional cases where an employee does not meet the profile criteria but should still be included in the plan.
- Go to the Override Eligibility section, and manually include or exclude specific employees from the plan.
7. Configure Eligibility Based on Plan Components
- In some cases, eligibility criteria may differ for different compensation components (e.g., salary increases, bonuses, stock awards).
- You can define eligibility rules for each component separately:
- For example, an employee may be eligible for a bonus but not for stock options.
- Go to the Plan Components section and assign specific eligibility profiles to each component.
8. Validate Eligibility
- Before finalizing the compensation plan, it’s important to validate that the correct employees are marked as eligible.
- Use the Eligibility Report feature to run a report on the employees who meet the eligibility criteria and ensure it matches expectations.
- Make any necessary adjustments if employees are incorrectly included or excluded.
9. Test the Plan
- Once eligibility profiles are configured, you should test the plan by running it in a test environment to ensure that the eligibility criteria are working as expected.
- This step will ensure that only the appropriate employees are included and can participate in the plan.
10. Finalize and Launch the Plan
- After validation, finalize the eligibility setup and launch the plan.
- The eligible employees will now be part of the compensation cycle based on the configured eligibility criteria.
Key Examples of Eligibility Criteria:
-
Job-based Eligibility:
- Criteria: Only employees in job code “Sales_Rep” are eligible.
- Profile: Create an eligibility profile where the job is set to “Sales_Rep.”
-
Grade-based Eligibility:
- Criteria: Employees in grade “5 and above” are eligible for stock awards.
- Profile: Set the job grade criteria to include employees in grades 5 or higher.
-
Service-based Eligibility:
- Criteria: Employees with more than 1 year of service are eligible for bonuses.
- Profile: Set the length of service to at least 1 year.
-
Location-based Eligibility:
- Criteria: Only employees in “New York” are eligible for a special merit increase.
- Profile: Include employees whose location is set to “New York.”
Summary of Key Steps:
- Create Eligibility Profiles by defining criteria like job, grade, location, and length of service.
- Assign Eligibility Profiles to the compensation plan to apply the criteria.
- Optionally, override eligibility for specific employees.
- Configure component-specific eligibility if different rules apply to different compensation types.
- Validate and test the eligibility before launching the plan.
Configuring eligibility ensures that compensation plans are applied only to the correct employees, ensuring alignment with organizational policies and avoiding errors during the compensation cycle.
Comp Plan Setups- Configure Plan Eligibility