#Create a New Compensation Plan

Follow the steps below to create a new compensation plan:

1. Navigate to Compensation > Plans.

2. Click Create on the command bar.

3. On the Create compensation plan page, complete the following settings:

   • Basic information – Complete the following required information:

     

     • Name – Enter a name for the compensation plan you are creating.

     • Fiscal year – Select a fiscal year.

     • Functional currency – Select a functional currency.

     • Local currency – Select a local currency.

     • Exchange rate for functional currency vs local currency – Specify the exchange rate between the functional currency and the local currency.

     • Publish date – specify a publish date for the compensation plan.

     • Applied to – Click Add link to define the applied scope. In the Apply to panel, select the specific organizations, legal entities, or offices as needed, and click Apply.

     • Advanced settings - This section will be displayed after Applied to is configured. Select Set advanced application rules option to define rules using Annual On-Target Compensation conditions.

   • Detail compensation information – Configure the compensation content which will be included in the compensation worksheet fro review.

     

     • Salary – Turn on the Salary switch and complete the following settings:

       • Target settings – Fill in the Salary increase budget percentage and Promotion/Adjustment budget percentage to get the total salary increase budget percentage.

       • Eligibility settings – Specify the eligible scope.

         • All employees – All employees are eligible to the compensation plan.

         • Specific employees by condition – Specific employees are eligible to the compensation plan. You can configure the rule conditions for the employees. Click Add to add multiple rules to filter employees.

       • Profile update settings – Select a change reason and specify an effective date.

     • Bonus – Turn on the Bonus switch and complete the following settings:

       • Target settings – Fill in the total budget percentage.

       • Eligibility settings – Specify the eligible scope.

         • All employees – All employees are eligible to the compensation plan.

         • Specific employees by condition – Specific employees are eligible to the compensation plan. You can configure the rule conditions for the employees. Click Add to add multiple rules to filter employees.

       • Profile update settings – Select a change reason and specify an effective date.

     • Equity – Turn on the Equity switch and complete the following settings:

       • Target settings – Fill in the total budget percentage.

       • Eligibility settings – Specify the eligible scope.

         • All employees – All employees are eligible to the compensation plan.

         • Specific employees by condition – Specific employees are eligible to the compensation plan. You can configure the rule conditions for the employees. Click Add to add multiple rules to filter employees.

       • Profile update settings – Select a change reason and specify an effective date.

     • Promotion – Turn on the Promotion switch and complete the following settings:

       • Promotion related fields – Select which promotion related fields to include in the compensation worksheet.

       • Profile update settings – Select a change reason and specify an effective date.

   • Worksheet design – Configure the settings for compensation worksheet.

     

     • Employee profile fields – Select which employee profile fields to include in the compensation worksheet.

     • Year-end performance review final rating – Select the Include year-end performance review final rating option to add the final rating from the year-end performance review to the compensation worksheet.

   • Review settings – Complete the following settings:

     

     • Plan owner – Select a role from the drop-down list to assign as the owner of the compensation plan.

     • Reviewer – Select Compensation reviewer from the drop-down list.

4. Click Save to save the compensation plan.