Compensation Configuration

Compensation Guide

Version
R2025.1.0
Compensation Configuration

Before You Begin: Compensation administrators should be assigned access to the Compensation Administration and Compensation Setup features, and to all associated subfeatures in the Features tab of System Admin > Roles. See Role Features for Compensation.

Configuration for the compensation features in Dayforce is generally done by an administrator who is familiar with compensation systems, the market, and competitive forces for your organization’s job types and locations. The administrator uses this knowledge when configuring the Compensation Setup features to ensure that your organization’s compensation needs are met.

For more information about the Compensation Setup feature, see the following topics:

If you want to configure your guidelines and compensation cycles to factor in employee performance ratings entered in the Talent screen of People or in the Performance feature, you must ensure that the Rating Scale role feature is enabled in the Features tab of System AdminRoles. Ratings from the Talent screen and Performance are automatically mapped to the selected rating scale for guidelines and compensation cycles. Ideally, you should use the same rating scale for reviews, guidelines, and compensation cycles in your organization.

Depending on the needs of your organization, you might also want to add target bonuses for specific jobs or for individual employees. Target bonuses allow you to create flexible bonus plans with different pay out metrics within your organization. See Configure Target Bonuses.

Also, if your organization has access to market data (supplied by a third-party survey vendor), you can import it into Dayforce from the Market Pricing feature. After importing, you can add this market data to your compensation cycles and then use it for salary benchmarking in your compensation worksheets. See Market Pricing Configuration.