Workday Advanced Compensation

Design Workshop
Intecrowd

Adam Ellis & Jill Sandberg

 Agenda: Advanced Compensation
Tuesday, May 12, 2020

Time (Eastern) Activity

9-10AM Advanced Compensation Process Demo in GMS

10-10:10AM 10 Minute Break

10:10-11AM Advanced Compensation Process Demo in GMS (continued)

11-11:10AM 10 Minute Break

11:10AM-12PM Advanced Compensation Process Demo in GMS (continued)

12-1 PM Lunch
Day 1
1-2PM Bonus Plans
2-2:10PM 10 Minute Break

2:10-3PM Bonus Plans (continued)

3-3:10PM 10 Minute Break

3:10-4PM Stock & Merit Plans

4-4:10PM 10 Minute Break

Stock & Merit Plans (continued)
4:10-4:45PM
Day 1 Wrap Up
Advanced Compensation Overview
 Compensation Touchpoints

WORKDAY CONFIDENTIAL
 Workday
Human Capital Management
 Merit, Bonus, Stock Execute
Workday
Plans
Financial Management Onboarding
Compensation
Benefits
 Promotions / Human Performance
Resources Talent
Adjustments / Lump Succession
Workday Absence
Workday PlanningSums Human Capital
Management

 Pay for Performance United States

United Kingdom
− Individual France
Canada
Workday Prism Payroll Global Payroll Cloud Learning
− Company /
Analytics and
Benchmarking

Division
 Total Rewards
 Reports / Analytics Recruiting Time Tracking

Analyze
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 What awards can be granted in your process?

Promotions

Lump
Sum Base
Pay Additional
Adjustments

Bonus Stock
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 DEMO

Advanced Compensation Walkthrough

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 Compensation Plan Types

Regular Incentiv
Ad hoc Other
Pay e Pay
One-Time Calculated
Salary Bonus Payment Plan

Hourly Merit

Period Salary Stock

Allowance Commission

WORKDAY CONFIDENTIAL
 Event Definitions and Terminology
These awards can be processed separately or included as part of a consolidated
process:
• Merit
‒ Process by which eligible employees are reviewed for an increase to their base pay
 Usually run on an annual basis
 Sometimes includes a “pay for performance” component
 Can also include promotion, additional adjustment, and/or lump sum

• Bonus
‒ Process by which eligible employees are reviewed for a payment in addition to their regular pay
 Usually run on a recurring basis (annual, quarterly, etc.)
 Can be included as part of an annual process with merit and stock, or standalone
 Sometimes includes a “pay for performance” component
 Sometimes includes a business performance component

• Stock
‒ Process by which eligible employees are reviewed for a stock or option grant in addition to their regular pay
 Can be included as part of an annual process with merit and bonus, or standalone
 Sometimes includes a “pay for performance” component
 NOTE: Administration, vesting and grant are processed outside of Workday
 Compensation Review Process
Shared Participation

Planner Planner + 1 or Reviewer

up the chain

Compensation Manager or Compensation

Administrator Comp Admin Administrator
Propose Approve/Modify Audit

Define Assign
Plans Plans to Launch Compensation
Employees Employee
Administrator
Payroll

Performance Complete
 DEMO

Plan Configuration

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Bonus Plan
Merit Plan
Stock Plan
 Agenda: Advanced Compensation
Wednesday, May 13, 2020

Time (Eastern) Activity

Discuss Wyndham’s Advanced Compensation Process:
• Eligible Workers/Differing Populations
9-10AM • Compensation Plans - Merit, Bonus, Stock
• Rules: Waiting Period, Proration, Rounding, and Validation Rules
10-10:10AM 10 Minute Break

10:10-11AM Discuss Wyndham’s Advanced Compensation Process (continued)

11-11:10AM 10 Minute Break

11:10AM-12PM Discuss Wyndham’s Advanced Compensation Process (continued)

12-1PM Lunch

Day 2 Discuss Wyndham’s Advanced Compensation Process (Continued):

1-2PM • Funding/Performance Scorecards & Compensation Matrix
• Security Groups – Existing and Proposed
2-2:10PM 10 Minute Break
Business Process Review:
2-4PM • Process/Snapshot Dates
• Participation Rules
3-3:10PM 10 Minute Break

3:10-4 Business Process Review (continued)

4-4:10PM 10 Minute Break

4:10-4:30PM Day 2 Wrap Up

 Eligible Workers/Differing Populations
Compensation Plans - Merit, Bonus, Stock
Discuss Wyndham-Specific Requirements
 Waiting Period Rules

• Allows you to set a delay on when employees will be included in the

process
• Can be applied to merit and bonus
• Possibility to include employees in a waiting period in the process
‒ If included in the process, the target and pool contribution will be zero

• Waiting period profiles not supported

• One waiting period per plan

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 Waiting Period Rules

• Set units in days, weeks, months, years

• From date options are similar to criteria in proration rules
‒ Company service date
‒ Continuous service date
‒ Date of last base pay increase
‒ Date of last merit increase
‒ Hire date
‒ Plan assignment date
‒ Position assignment date

• Criteria supporting exclusions

‒ Date of last base pay increase
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 Waiting Period Example: 3 Months from Hire Date

PPSD Hire Date: 1 Aug 2016 PPED

Your Waiting Period

01 Jan 2016 31 Dec 2016

PPSD = Process Period Start Date

PPED = Process Period End Date
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 Proration Rules

• Proration rules can be applied to merit and bonus

• Proration is applied to the target amount/ percent
displayed in a compensation review process
• Calculated based on calendar days in the process period
• Only one rule per plan
‒ Rules can include more than 1 criteria
• Proration rule profiles not supported

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 Proration Criteria
NOTE: Not all necessary transactional history will be included. Therefore, not all proration
options will be available for the first year.
• Proration criteria highlighted in Green do not need transactional history.
• Proration criteria highlighted in Purple can be included when transactional history is in scope.

These criteria will define the proration period

• Time based criteria • Period based criteria
‒ Time in Plan – Base Pay Changes in period
‒ Time in Position – Target Changes in period
‒ Time since Company Service Date – Leave of Absence
‒ Time since Continuous Service
– FTE Changes in period
Date
– Scorecard Profile Changes in Period
‒ Time since Hire
‒ Time since last Base Pay increase
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‒ Time since last Merit increase
 Proration Criteria Supporting Exclusions

• Base Pay Changes in Period

• Leave of Absence
• Time Since Last Base Pay Increase
 Rounding Rules

• Rounding rules ensure the awards are rounded as desired

• Possible to either round:
‒ Nearest value
‒ Currency precision
• Rounding rule profiles are supported
• One rounding rule per plan

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 Rounding Rules: Merit and Bonus

• For merit, rules are applied to the New Pay Amount

• For bonus, rules are applied to the Total Bonus Amount granted
• Rules are dynamically applied when the user enters an award
• Currency precision rounding rules for hourly rates
‒ Hourly rates currently support up to 6 decimal places
‒ A currency precision rule can be used for example in the US to round to 2 decimal
places

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 Rounding Rules: Stock

• Only available for amount and percent based plans

• Rounding rules for stock are applied only during the Update Stock
Grant process
‒ Rules are not applied during a compensation review process

• The rounding rule is used to round the number of shares granted

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 Validation Message Configuration

• Critical or Warning
• Validations are condition rules, based off of the Report Fields on each of
the business objects
• Business Objects:
‒ Adjustment For (Merit, Promotion, Additional Adjustment, Lump Sum)
‒ Compensation Review Bonus Payment (Bonus)
‒ Stock Plan Award (Stock)

• Can create calculated fields to pull related information to validate

against
• Can configure custom validation message, translatable
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 DEMO

Process Initiation

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 Compensation Scorecards

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 Compensation Matrix

Non-Weighted Single Target

Compensation matrix

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 Compensation Matrix

There are three types of Compensation Matrices:

1• Percent
‒ Derives a percent based target based on selected factors and rules
2• Amount
‒ Derives an amount based target based on selected factors and rules
3• Weighted
‒ Derives a factor that is applied to the target when calculating an award
 Pay for Performance

INDIVIDUAL PERFORMANCE BUSINESS PERFORMANCE

Increase Performance
Business Results
Matrix Rating

Compensation Completed
Review Company
Matrix Template Review Scorecard
Rating
Scale

Individual Compensation
 Process Dates Overview

   
Date Description

Effective Date • The default effective date for all awards in the process.
• Can be changed by award type or using Exceptions by Rule

• Used to delay when employees can see their comp changes until a date after the Effective Date
Employee Visibility Date • If used, must be greater than the Effective Date
• Excludes promotions that are part of the merit process

• Used with each plan frequency to determine the process period (i.e., the evaluation period that applies for this process)
Process Period End Date
• Cannot be earlier than the default effective date

Organization Snapshot Date • Used to evaluate the organization hierarchy for employees in the process

Compensation Snapshot Date • Once the employee population is determined for a process, used to evaluate employee’s starting compensation
• MUST be equal to the Process Period End Date in order to support proration rules

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 Coordination of Events

• During your compensation review process, business as usual

continues and other staffing/ compensation events might be entered
‒ Data entered on these processes can conflict with the review process

• Workday displays employees with competing, in-progress events on

the Manage Impacted Employees step on the process
• With participation rules you can configure how Workday should
reconcile these potentially conflicting events
‒ If you do not select any rules, compensation and staffing transactions effective
before the effective date of the review process are locked

Workday Confidential
 Participation Rules

• Participation rules can be created for 3 event types

‒ Parallel Events
‒ Eligible Earnings Override (bonus only)
‒ Terminations

• For parallel events there are 3 date ranges for which rules can be
created
‒ After Compensation Review Effective Date
‒ After Compensation Snapshot Date through Compensation Review Effective Date
‒ On or Before Compensation Snapshot Date

• Participation rules profiles supported

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 Participation Rules

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 Compensation Review Process Setup

WORKDAY CONFIDENTIAL
 Approval Flow
Entire Hierarchy
Planners review and edit entire hierarchy below
their organization
Overall budget includes the planner’s entire
hierarchy
Planners must await the organizations below to be
submitted prior to submitting their own planning
Complete on Behalf allows planners to pull their
entire hierarchy to their level for planning
Reassigning the Inbox item can occur at any level
above the planner’s organization
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Next Participant Only
Planners can review, but not edit or approve, more
than one level of planning below their organization
Overall budget only includes those organizations
which the planner can approve
Planners must submit their direct organizations for
approval prior to approving the subordinate
organizations
Complete on Behalf is not available
Reassigning the Inbox item at one level above will
only advance that level's planning, no longer
requiring an approval
 Agenda: Advanced Compensation
Thursday, May 14, 2020

Time (Eastern) Activity

Security Roles:
• Planners
9-10AM • Participants
• Reviewers
• Controllers
10-10:10AM 10 Minute Break

10:10-10:40AM Shared Participation Options

10:40-11AM Consolidated Merit Grid
11-11:10AM 10 Minute Break

11:10AM-12PM Consolidated Merit Grid (continued)

Lunch
Day 3 12-1PM
Compensation Statements:
• Workday’s Default
1-2PM • Discuss Wyndham’s Current Statements
• Capture Requirements
2-2:10PM 10 Minute Break

2:10-3:30PM Mapping Wyndham’s Advanced Compensation Process out in Workday

3-3:10PM 10 Minute Break

3:10-3:30 Mapping Wyndham’s Advanced Compensation Process out in Workday (cont.)

3:30-4PM Parking Lot Items
4-4:10PM 10 Minute Break
 Compensation Review Process Roles

WORKDAY CONFIDENTIAL
 Compensation Review Process Roles
Planners*

• Propose awards in one task and grid

• View employees in a hierarchy in a single grid

Participants (optional)

• Support the planners during the process

• Ability to “proxy in” as a planner to see what they see
• Can modify awards

Reviewers (optional)

• Ability to view and/or edit the awards for supported employees

Controller(s)*

• Final approver of the merit process

• Single inbox task to control the entire process
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 Business Process & Security Groups

Step Example: Assigned To

Initiation Compensation Administrator

Manage Impacted Employees Compensation Administrator

Configure Merit Pools Compensation Administrator

Distribute Pools Compensation Administrator

Launch Employee Merit Awards Compensation Administrator

Merit Planner / Compensation Partner / Stock

Complete Employee Awards
Planner
Process: Compensation Review Process Participant

• Roles—Supervisory
• Unconstrained Security Groups
Roles

Modify Access Needed to Plan Awards in the Grid

Roles to Receive an Inbox Item
Managers
Selected in the Configure Shared Participation Step
Planners

• View or Modify Access as “Proxy in”

• No Inbox Item; No Submission
Support • Run: Compensation Review Process View Organization Domain
Roles

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 Process: Compensation Review Process Reviewer
• 40 Allowed Security Group Types; i.e., Supervisory Organization
• Part of Intersection Security Group
Roles • Unconstrained Security Groups

Roles Who Need Ability to View and/or Edit the Grid

Has Access to Employees You Support
Access

Domain

• No Inbox Item; No Submission; No Budget Info.

Reviewer • Run: Compensation Review Process Search Employees
Roles

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 Reviewer Roles
View Access to Reviewer Domain

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 Reviewer Roles
Modify Access to Reviewer Domain

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 Shared Participation – Control Page

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 Control Page - Process Tab

Search Finalize Action

• Search Employees Report Finalize Compensation Review • Compensation Review Process

• Awards no longer available for editing Maintain Pools
• Moves the process to the next step (if • Compensation Review Process Status
any) Report By Hierarchy
• Cannot go back to previous step • Compensation Review Process View
Organizations

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 Control Page - Details and Employee Participation

• Process Details; i.e., Snapshot Dates

• Plan and Scorecard Results Details
Details
• Exception by Rules
• Participation Rules

• Add Employee to Compensation Review Process

• Compensation Review Employee Changes Audit
• Employees in Waiting Period for Compensation Review Process
Employee • Maintain Employee Participation Remove from Process
Participation • Maintain Merit Process Employee Participation
• Manage Impacted Employees
• Newly Eligible Employees to Compensation Review Process
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Configurable Grid
 Configurable Grid

• The configurable grid is modeled after Report Writer for consistency

and ease of use
• 3 grid types for compensation review processes
‒ Merit
‒ Bonus
‒ Stock

• Can include Read Only, Editable or Advanced (drillable) fields

• Supports Calculated Fields and Custom Fields
• Allows for column label overrides

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 Design Considerations: Keep It Simple!

• Start with the editable fields

‒ What can managers change?

• Keep view fields to a minimum

‒ What key supporting information do managers need in order to make the best
decisions?
‒ Where do we want that information displayed?

• Is there additional data needed that is not provided by delivered fields?

‒ How critical is this information?
‒ Is there a Custom Field that holds that information?
‒ Can it be added in a calculated field?

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 Columns, column groups,
and summary items
configurable by admins

Up to 4 Individual Smart Panel” of

columns supporting
configurable information

Configurable
“composite”
view of a worker
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 Composite Columns

• Composite column provides a view of up to 3 fields and the

employee photo in one column
‒ Remember: sorting of this column is always by the “Title” field
‒ Displays as the first column in the grid

Workday Confidential
 Individual Columns

• Up to two (2) additional view only columns can be added and will be
frozen to the left of the page with the composite column
• Add Advanced Fields in Individual column to display errors/warnings
in the grid

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 Merit Awards

• Increases to base pay, additional adjustments and lump sum

awards are grouped under our “merit” section
• Editable fields include:
Merit Additional Adjustment Lump Sum Award

Merit Amount Additional Adjustment % Lump Sum %

Merit Factor Additional Adjustment Amount Lump Sum Amount

Merit Increase % Additional Adjustment New Pay Lump Sum Notes

Amount
Merit New Pay Amount Additional Adjustment Notes

Merit Notes Additional Adjustment Reason

Workday Confidential
 Merit Awards

• Custom Calculation Input Field

‒ Do we need the ability to write a custom calculation around an editable field?
 Auto funnel award amount over Pay Range Maximum to Lump Sum
 Plan Hourly employee Merit as an Annual amount

• Common Read Only fields relate to

‒ Current pay (current vs proposed)
‒ Increase guidelines
‒ Simple analytics (such as compa-ratio, pay range segment)
‒ Plan names
Focus primarily
• What other Read Only fields are needed? on those that
support
• Do we need Custom or Calculated fields? decision
making!
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 Bonus

• You can also choose to include one or many bonus plans in your
compensation review process
• Editable bonus fields include:
‒ Bonus %
‒ Bonus Amount
‒ Bonus Factor %
‒ Bonus Notes
‒ Bonus Target Amount (or Percent) - Proposed

• Advanced bonus fields available in Grid:

‒ Actual Bonus Amount
‒ Rounded Total Bonus Target Amount
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 Read Only Fields for Bonus

• What data is needed for

managers to make an informed
decision about bonus awards?

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 Stock

• Stock grants can also be initiated during a consolidated merit review

process
• Editable stock fields include:
‒ Stock %
‒ Stock Amount
‒ Stock Factor %
‒ Stock Notes
‒ Stock Units
‒ Stock Target Amount (or Percent) - Proposed

• Advanced Stock field:

‒ Stock Award Split
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 Read Only Fields for Stock

• What data is needed for

managers to make an informed
decision about stock awards?

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 Read Only Fields for Stock

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 Merit Statement

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 Merit Statement

• Release Compensation Review

Statement (task) – Finalize /
release Merit Statements and
Process Payroll
• Workday has a delivered
template, often clients choose to
use a custom BIRT template to
meet their company-specific
needs

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 DEMO

Merit Statement

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 DEMO

Merit Statement

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Thank You!
Thank You