Auto-Allocate Budget

Compensation Guide

Version
R2025.1.0
Auto-Allocate Budget

Auto-allocation provides a starting point for allocations. After the budget is allocated, you can adjust the values in the editable pay component columns. You can auto-allocate your budget to the entire employee list or the filtered list of employees in the worksheet.

To auto-allocate your budget:

  1. Click Auto Allocate. Dayforce opens a dialog box with the allocation options.
  2. Note: If the cycle contains more than one pay component, the Auto Allocate button changes to a drop-down list from which you can select the pay component to allocate rewards.
  3. Select one of the following options:
    • By Guideline: Allocate a portion of the budget to each employee based on the guideline. If the guideline value is a range, Dayforce allocates based on that range's mid-point. This option is enabled only if guidelines were configured for the pay component.
    • Percentage: Enter a value to allocate a portion of the budget to each employee based on the defined percentage of their annual salary or current hourly rate, as applicable.
    • Note: If the pay component uses a flat amount guideline (that is, one based on amounts rather than percentages), the Percentage option isn’t enabled. This is because you can't allocate a percentage value for pay components that use flat amount guidelines.
    • Equally: Allocate an equal portion of the budget to each employee.
    • Note: This option isn’t shown when you’ve applied the filter to view a specific list of employees in the worksheet.
  4. Click OK.

If the pay component uses bonus factors, the auto-allocate dialog box shows a different set of options. The following options are available:

  • By Guideline - Allocates mid-point of guideline: Allocate a portion of the budget to each employee based on the mid-point of the guideline associated with the bonus factor. This option is only enabled if guidelines were configured for the pay component.
  • Payout Percentage: Enter a value to define what percentage of the target bonus should be allocated to each employee based on their eligible salary. For example, if an employee has a target bonus of 10% and the weight of the payout factor is 100%, if you enter a payout percentage of 50%, Dayforce allocates only 50% of the target bonus (that is, 5% of their eligible salary).
  • Note: If the pay component is configured to apply target bonuses and funding for budget calculations, the payout is calculated using the configured funding percentage.