When Dayforce is configured for tiered rates, an employee's step value is calculated weekly based on their worked time for the week. This means that an employee's rate can vary week-to-week depending on their worked time, as opposed to the standard base rate progression where the employee's base rate increases over time based on factors such as their length of service.
Employees' step values can be calculated in one of two ways when using this functionality:
- Weekly Worked Hours: Dayforce sums the employee's worked hours for the week to determine their step value. In the example above, employees qualify for the $7.95 rate by working 30 hours in the week.
- Schedule Adherence: Dayforce uses an employee's schedule adherence percentage (that is, the percentage of worked time that adhered to their scheduled time) to determine their step value.
- To calculate this percentage, Dayforce performs the following calculations for each shift:
- A = the difference (in minutes) between the employee's scheduled and actual start times (regardless of whether early or late) as a positive value, if the shift was worked.
- B = the difference between the employee's scheduled and actual end times (regardless of whether early or late) as a positive value, if the shift was worked.
- C = the number of unworked minutes during the scheduled shift, regardless of whether the shift was worked.
- D = the “total out of adherence” time for this shift, calculated by adding A + B + C.
- F = the entire scheduled time for the shift.
- Then, it checks for any pay codes that are configured as “forgiveness” pay codes (that is, pay codes that mark time where an employee didn’t adhere to their scheduled time for legitimate reasons, such as being asked to stay late):
- G = minute duration of forgiveness minute pay adjustments for schedule lowering, such as unworked minutes that were originally scheduled
- H = minute duration of forgiveness minute pay adjustments for schedule raising, such as worked minutes that were originally unscheduled.
- I = minute duration of forgiveness pay adjustment for leaving the schedule unchanged.
- Lastly, it performs the following calculations for the entire week to determine the employee's schedule adherence percentage:
- W = (sum of D for all shifts during the week) - (sum of G, H and I throughout the week), but can't fall below zero.
- X = (sum of F for all shifts during the week) - (sum of G throughout the week) + (sum of H throughout the week), but can't fall below zero.
- Y = percentage out of adherence = 100 * (W/X)
- Z = schedule percentage adherence = 100-Y
See the following topics: