Create Compensation Plans

Before you configure a compensation plan, you must ensure the following:

• You have access to the Compensation Plans subfeature under Compensation Setup in the Features tab of System Admin > Roles.
• One or more groups are configured with the Compensation group type in HR Admin > Groups. See “Group Setup” in the HR Administration Guide.
• You ran the Group Members Generation background job in System Admin > Background Jobs. This background job enables membership for employees in compensation groups based on the eligibility criteria configured in HR Admin > Groups. It’s a best practice to run this job daily to keep data synchronized.
• One or more metrics definition records are configured in Compensation Setup > Compensation Metrics. See Create Metrics Definitions.

To create a compensation plan:

1. Go to Compensation Setup > Compensation Plans.
2. In the Add drop-down list, click Plan. The Add Plan dialog box opens.
3. In the General section:
   • Name: Enter a name for the compensation plan.
   • Description: (Optional) Enter a description for the compensation plan.
   • Plan Period: Select a period for the compensation plan. The following options are available in the drop-down list:
     • Annually: Defines the plan period as annual, or for 12 months.
     • Monthly: Defines the plan period as monthly.
     • Quarterly: Defines the plan period as quarterly, or for three months.
     • Semi-Annually: Defines the plan period as semi-annual, or for six months.
   • Start Month: Select a start month for the compensation plan period. This drop-down list is enabled only if you selected Annually, Quarterly, or Semi-Annually in the Plan Period field.
   • Start Day: Select a start day for the compensation plan period. The following options are available in the drop-down list:
     • First Day of the Month: Select this option to use the first day of the selected month as the start day for the compensation plan.
     • Last Day of the Month: Select this option to use the last day of the selected month as the start day for the compensation plan.
   • Note: You can edit the Name and Description fields of the compensation plan at any time, but you can’t edit the Plan Period, Start Month, or Start Day fields after saving the plan.
4. In the Eligibility section, to add groups of employees to the compensation plan:
1. Click Add.
2. Configure the details of the group using each column as follows:
   • Groups: Select a group to identify the included employees as eligible for the compensation plan. The drop-down list shows groups that were configured with the Compensation group type in HR Admin > Groups. See “Group Setup” in the HR Administration Guide. After selecting a group, you can click View Members to view all of the members in the assigned group. You can also export the list to a CSV file by clicking Export in the dialog box.
   • Note: If an employee moves from one group to another due to promotions or transfers, and as a result, the employee becomes eligible for another plan, and if this group change occurred earlier than the current date, the group effective dates don’t show the actual date in the past when the change occurred. The dates are only updated when the Group Members Generation background job runs. This background job checks the employee's eligibility in groups and sets the employee's Effective From date to the date when the background job runs for the first time after the change occurred. You can use the Compensation Plan Administration feature to update the dates.
   • Effective From: Enter a date in the field or click the calendar icon and select a date from the calendar to define when the group will be eligible in the compensation plan.
   • Effective To: (Optional) Enter a date in the field or click the calendar icon and select a date from the calendar to define when the group will no longer be eligible in the compensation plan.
   • You can delete a group by selecting the group and clicking Delete.
5. Click Add. Dayforce adds the compensation plan to the left-side panel in alphabetical order. The compensation plan details are shown to the right.

Note: You can’t delete a compensation plan that is linked to a compensation cycle.