## Understanding Compensation Management

This chapter provides an overview of compensation management and discusses how to set processing options for Compensation Review Workbench (P08826).

### Compensation Management

To adequately budget for employee salaries, you must plan for employee pay changes and assess the financial impact of those changes on the salary budget.

Compensation management is a flexible salary planning tool that improves the salary review process for both the human resources department and management. A human resources representative begins the salary review process by setting up all the rules and constants that define eligibility, and the guidelines for using the system. Before processing a compensation review, the human resources representative must first build work tables. After building these work tables, the human resources representative can grant managers access to them.

Each time that a manager accesses the system, a visual indicator identifies any data changes that have been made to the employee master records so that the manager is certain to have the most current employee information for making salary recommendations.

Managers can use compensation management to create compensation review models with different “what if” scenarios and save their work to a master model, a private model, or a public model. The master model is used to approve and update the salary recommendations to live tables. Private models are visible only to the person who created them. Public models are predefined by the human resources department. The public models enable private models from multiple managers to be consolidated without committing the salary review to the master model. Upper level managers can look at public models to see the combined salary review recommendations from multiple supervisors without having to open the individual models of each of the lower level managers.

The compensation management feature gives human resources representatives more control over the salary planning process while freeing them from administrative tasks that are historically associated with salary planning. The benefits to the human resources department include:

- Human resources representatives can define the parameters under which supervisors can operate, thereby removing the human resources department from the process of manually looking for any activities that are outside the guidelines.

- Real time information automatically updates supervisor rosters and budgets.

- Online forms save time and prevent security risks that are associated with mailing employee information.

Benefits to supervisors include:

- A Web based user interface enables supervisors to plan salaries or approve recommendations from any location.

- Real time information gives supervisors the most current data on which to base decisions.

- Online guidelines with visual indicators help supervisors make informed decisions and give them instant feedback about their recommendations.

- Summary information immediately tells supervisors whether the salary information that they and their subordinate supervisors are entering is within the salary budget.

- Upper management can review the progress of the staff from a budget and salary review perspective.

The compensation management feature can improve the salary review process for both the human resources department and management.

See Also

Understanding Manager self service

### Setting Processing Options for the Compensation Review Workbench Program (P08826)

Processing options enable you to specify the default processing for programs and reports.

For programs, you can specify options such as the default values for specific transactions, whether fields appear on a form, and the version of the program that you want to run.

For reports, processing options enable you to specify the information that appears on reports. For example, you set a processing option to include the fiscal year or the number of aging days on a report.

Do not modify JD Edwards EnterpriseOne demo versions, which are identified by ZJDE or XJDE prefixes. Copy these versions or create new versions to change any values, including the version number, version title, prompting options, security, and processing options.

Process

This processing option specifies the URL (Uniform Resource Locator) for the Compensation Review Guide.

URL for Compensation Review Guide | Use this processing option to specify the URL for the Compensation Review Guide.

New Job

These processing options specify the default values that the system applies to a new job.

1. When changing employee's job, default the new job information. | Use this processing option to specify whether to use the default information for a new job. Values are: 0: Do not default 1: Default
2. Allow Override of Default Job information. | Use this processing option to specify whether to enable the supervisor to override the default information for a new job. Values are: 0: Do not allow 1: Allow

Performance Profile

These processing options specify the appraisal scale name and the performance profile information that the supervisor is allowed to enter.

1. Performance Appraisal Scale Name (Required) | Use this processing option to specify the scale to use for measuring an employee level of proficiency in a particular competency. You define the scale in the Scale Information program (P05103) as part of setting up compensation management. The scale uses a series of competency levels to represent standards of relative proficiency.
2. Entry of Performance Appraisal | Use this processing option to specify whether to enable a supervisor to enter performance appraisal information on the Individual Compensation Review form (W08812A). Values are: 0: Do not Allow 1: Allow
3. Entry of Job Competency | Use this processing option to specify whether to enable a supervisor to enter job competency information on the Individual Compensation Review form (W08812A). Values are: 0: Do not Allow 1: Allow
4. Entry of Tier or Ranking | Use this processing option to specify whether to enable a supervisor to enter tier or ranking information on the Individual Compensation Review form (W08812A). Values are: 0: Do not Allow 1: Allow