After weeks of preparation, you’re finally ready to run the task: Initiate Compensation Review Process. You’ve finished reviewing eligibility, award calculations, and grid configurations, but…what do those dates mean, again?
This is a fair question to ask and very important items to review! So much so, we’re including our Workday Advanced Compensation cheat sheet below.
1. Effective Date
Yes, this is the easy one! This is the date when approved awards take effect in Workday.
- Example: If an employee receives a merit increase of 3%, it will begin impacting the worker’s compensation starting on the effective date of the process. In this example, the merit increase will begin effecting a worker’s compensation starting on February 15th.
2. Employee Visibility Date
Workday will hide the compensation data from the Employee until after the specified date. In other words, this is the date at which point the Employee will be able to see the changes made during the compensation review process.
- Example: If the Compensation Review Process is effective on February 15th but the employee visibility date is February 21st, the compensation review will take effect in the tenant a month before the employee is able to see the changes on their profile.
Note: This is an optional field that can be enabled under Edit Tenant Setup – HCM > Compensation > Enable Employee Visibility Date.
Some of our clients choose to delay visibility by a few days so a manager can have an in-person conversation with the worker to review compensation updates.
3. Process Period End Date
This date will determine which employees are eligible for inclusion in the compensation review process. This is based off the Plan Assignment dates. Workday will also recognize Waiting Periods as well as any Proration calculations
- Example: If an employee is eligible for a compensation plan starting on 01/01/2021, but the Process Period End Date is 12/31/2020, the employee will not be included in the process.
4. Organization Snapshot Date
This date allows Workday to determine which organization an employee belongs to, and therefore which organizations are included in the compensation review process.
- Example: Organization Snapshot Date is 2/15/2021 – If a worker was in “Organization A” for the entire process period of 1/1/2020 – 12/31/2020 but was transferred to “Organization B” on 02/01/2021, they would be in “Organization B” as of the Organization Snapshot Date. This means that the worker would be included in the compensation review process under “Organization B.”
5. Compensation Snapshot Date
You can find this field on the next page. This date will determine eligible employees in pool and award calculations. The process will use this date to look at the employees compensation and determine their pool contributions and award calculations.
- Example: Compensation Snapshot date of 2/15/2021 – If a worker has a Merit target of 10% and their total base pay as of 2/15/2021 is $50,000, the employee’s pool contribution and award calculation would be $5,000. Even if their total base pay was $45,000 up until 2/14/2021, their award calculation would be $5,000 since this is calculated using the employee’s compensation as of 2/15/2021.