Starting the Workforce Compensation Cycle in Oracle Fusion is an important process for managing compensation activities, such as salary reviews, bonuses, and stock options. The process involves setting up and distributing compensation worksheets to managers, defining eligibility, and preparing for data entry and approvals. Here’s how you can initiate the Workforce Compensation Cycle step-by-step:
1. Navigate to Workforce Compensation Work Area
- Go to Navigator > Compensation > Manage Compensation Plans.
2. Select or Create a Compensation Plan
- In the Manage Compensation Plans page, select an existing compensation plan that has been set up and configured, or create a new plan.
- To create a new plan, click on Create Plan and follow the guided process to configure the plan, including components like salary, bonuses, and stock options.
3. Configure the Compensation Plan (If Not Already Done)
If you are starting a new cycle, ensure that the following key components are configured:
a) Eligibility Rules
- Define which employees are eligible for the compensation plan based on criteria like job, location, department, performance rating, etc.
- Go to the Eligibility section of the plan configuration and set up rules based on employee attributes.
b) Compensation Components
- Configure the various components of compensation, such as base salary, merit increases, bonuses, and stock options. Each component can have its own set of rules and budget allocation.
- Define guidelines for managers to follow, such as percentage ranges for salary increases.
c) Budgets
- Set up compensation budgets at the company, business unit, department, or manager level. This ensures that managers have a predefined allocation to work with during the compensation cycle.
d) Approval Workflows
- Define the approval workflows for compensation decisions. These workflows will route compensation changes through multiple levels of management for approval before they are finalized.
4. Configure Worksheet and Alerts
- Worksheet Configuration: Ensure that the compensation worksheet, where managers will enter and approve compensation details for their teams, is properly set up.
- Define which data fields will be available to managers in the worksheet (e.g., current salary, performance rating, proposed salary increase).
- Alerts: Set up alerts and notifications to remind managers about upcoming deadlines or milestones during the compensation cycle.
5. Review and Finalize the Plan
- Once all the settings are configured (eligibility, components, budgets, workflows), review the plan thoroughly.
- Use the Review Plan option to validate that all elements are in place and accurate. Ensure that any potential issues are resolved before starting the compensation cycle.
6. Start the Compensation Cycle
- After reviewing the compensation plan, you are ready to start the cycle.
- In the Manage Compensation Plans page, select the plan and choose Start Cycle or Initiate Plan from the Actions menu.
a) Distribute Worksheets to Managers
- When you start the cycle, Oracle Fusion will distribute the compensation worksheets to the appropriate managers based on their reporting hierarchy.
- Managers will be able to view their team members’ compensation data, enter changes (e.g., salary increases, bonuses), and submit for approval.
b) Notify Managers
- After the compensation cycle is initiated, notifications will be sent to managers informing them that the worksheets are available for review and data entry.
- If you’ve configured reminders, managers will also receive alerts about deadlines as the cycle progresses.
7. Monitor the Compensation Cycle
- As the compensation cycle progresses, HR administrators can monitor the completion status of the worksheets through the Compensation Work Area.
- You can track which managers have completed their entries and submissions, and follow up with those who may need additional reminders.
8. Manage Compensation Approvals
- Once managers have entered their compensation decisions (e.g., salary increases, bonuses), they will submit the worksheets for approval.
- Depending on your workflow setup, the approval process may go through several levels of management.
- Compensation administrators can monitor the approval process and intervene if necessary (e.g., if a manager submits an entry that exceeds the budget or violates guidelines).
9. Final Approval and Commit Changes
- After all worksheets are submitted and approved, the final step is to commit the compensation changes to the HR database.
- This step ensures that all approved salary increases, bonuses, and other compensation changes are reflected in the employees’ records.
a) Post Changes to HR
- When ready, you can run the Post Compensation Changes to HR process, which updates employee records in the HR system.
- Ensure that any final adjustments or corrections are made before this step, as this will lock in the compensation changes.
10. Close the Compensation Cycle
- After all changes are committed to HR and approvals are complete, the compensation cycle can be closed.
- Ensure that all necessary reports are generated and archived for audit or compliance purposes before closing the cycle.
11. Review and Reporting
- Generate reports on compensation changes, including salary increases, bonus distributions, and stock grants.
- These reports can be shared with management for review or used for regulatory compliance purposes.
Key Considerations:
- Data Accuracy: Ensure that employee data is accurate and up-to-date before starting the compensation cycle. Any changes after the cycle has started may require refreshing the data.
- Budgets: Carefully review and monitor budgets to ensure managers stay within their allocations.
- Communication: Clear communication with managers regarding deadlines and guidelines is critical to ensure a smooth compensation process.
By following this guide, you can successfully start and manage the Workforce Compensation Cycle in Oracle Fusion, ensuring that compensation decisions are handled efficiently and fairly across the organization.