Merit and Incentive Features#

The functionality is to enhance the system with a methodology for giving compensation pay for successful personal in Incentive and merit increases based on a successful annual review.

Annual Review#

Goal Generation#

• A new update process is created called USDG-Generate Development Goals for review. This process will be the start of Annual Reviews using goals for development. It may include filters up to all of the standard Personality people selection criteria and will include parameters for selection of the source of pre-defined goals generated to a new table Development Goals (SDG). The source of the goals can come from either Review Type Subjects(SRT) (Alternate source) or Entity and Job profile core competencies. Jobs and Positions
• Current definition screens IDJB and IDPS for jobs and position respectively have the ability to define a Job Profile. This will give the ability to group common jobs and or positions in a job family with common core competencies. These Job Profiles defined in IRJP with included competencies are the frame work and will be the source of pre-generated goals an employee or manager may select, but not limited to for the years review. Core Competencies
• Competencies are defined in ICCC - Define Core Competencies
• Competencies will be improved to hold a new predefined lexicon x_competence_status giving the ability to help maintain validity as competencies may change over time.
• At the levels of Core Competence(2nd) a new column will be added to define the competence weight. ex: 20% (Core) 80%(Individual). This feature currently exists at the lowest level. These weights maybe be adjusted by a new process USAC explained in the Incentive section below
• Competencies will be definable with Rating Scales in new tables provided called Rating Scales (SRC) and Achievement Ratings (SAR). These scales will include awarded points and Achievement percentages. This allows for two independent scales. Ex: Core Values (4 steps) and Individual Goals ( 10 steps). The rating will be used during the annual review by employees and managers aiding in calculations for incentive pay outs. Review Types
• An alternate source of pre-generated goals may come from a current review definition. Reviews are maintained in ISRV - Record Performance Reviews. A review is defined with a Review Type maintained in ISRT - Define Review Types.
• The details of the review type include Review Subjects. Review subjects have columns similar to competencies including weighting which will be used to allow each goal to be weighted ( This option will not be used for NCRA). If goals are to be generated from competencies then a review type without review subjects will be used to generate the review and goals

Goal Selection Maintenance and Approval#

• Once the annual performance reviews have been generated for all employees needed, they and their managers must enter self service and "select" or "create" the goals which will help tailor each individual employee and be reviewed over the next year. Selecting will only be necessary unless USDG was run with the option to set all goals as "selected" (NCRA will use this option). By changing the lexicon column (x_goal_status) from "Unselected" to "Selected" it becomes eligible for the current review. This option allows a company to have one or several pre-generated and commonly used goals available.
• Selection and maintenance is done via two self service screens. One for employees WEGA - Maintain My Goals and Activities and one for managers WMGA - Maintain My Employees Goals and Activities.
• Once the employee has selected all the goals they want from the selected list. An employee is permitted to add any which they feel would also be beneficial or relevant to them. Managers will also have the ability to add goals at this point.
• WEGA shows only the goals (selected and unselected) for the self service user logged in.
• WMGA show all goals (selected and unselected) for direct and indirect reports to that manager.
Note: Manager hierarchy definition is not part of the document. • WEGA and WMGA provide entry points for employees and managers to record activities on each goal throughout the year into a new table Goal Activities ( SGA ).
• An approval suite of screens WMGR - Manager Goal Review for direct, first level and second level managers and WEGR- My Goal Review for employees may be necessary depending on screen realty. These screens will be available to approve the goals selected, Activities made and final evaluation of the goals.
• Managers may add comments and ratings on each goal based on activities recorded for each goal over the past year on the approval screens.
• Employees will submit and sign off on the employee approval screen.

Incentive Pay
#

Compensation Generation#

• A group of new tables will be added called Compensation Groups (SCG), Compensation Rewards (SCR) and Compensation Reward Details ( SCRD). These tables will be populated via a new update process called USAC - Award Compensations.
• USAC has two sources where it will populate the compensation tables from depending on parameters provided.
• When and entity has entered Actual earnings on Entity Details (DED) and meets their threshold target employees are then eligible for incentive compensations. Compensation groups will be added 1 to 1 with the Core and Individual competencies with their weighting adjusted to add up to 100 % with a third group added for representing Corporate goals. The Corporate goal Incentive group will have its weight sourced from the definition on Entity Details (DED) Ex: 50%. Each group will have Compensation Details added to allow individual pay outs based on review ratings and achievement percentages defined on Salary Range Details (SSRD).
• These tables are a staging area for final sprinkling before being brought into payroll and may also contain lump sum Merit payments.
• The proration methods/ formulas will be part of the parameter selection process of USAC by predefined lexicon value. An example of this is the existing USPF proration method selection.

Compensation Approval and Visibility#

• All compensations (SCR) are subject to approval and will be visible in a sweet of self service screens. These would include a screen for managers and one for compensation administrators such as payroll clerks.
• The manager screen will be WMCR - Review and Maintain My Employee Compensation Rewards.
• The administrator version will be WACR - Review and Maintain Employee Compensation Rewards.
• A Personality admin screen may also be provided called ISCR - Maintain Compensation Rewards which could be used by payroll/administrator staff.

Generating Compensations to Payroll#

• Once sprinkling of extra funds and all approvals have been made compensations will then be made real and applied into payroll (Destination to be determined by HL management.) by a new process called USPC - Generate Pay Compensations.

Merit
#

• This path will start with previously generated reviews generated by USDG which have been granted final approval and contain an overall rating based on average ratings from Goal Groups (mentioned previously in this document).
• An existing Process USPF- Estimate Performance based Increases is used to generate personnel actions. These personnel actions provide a place to record % and $ amount changes to employees assignment record wages and also provide a location to award Lump sums.

• These Personnel action will be improved to include the ability to use Employee Statistics (EST) to record lump sums which will be paid out to employee's threw compensations previously mentioned.
• Yearly awarded lump sums will be recorded by creating a new Statistical Component in an existing screen IDSC - Define Statistical Components yearly.
• A salary matrix as part of the existing Personality product ISMX- Define Salary Matrices provides suggested salary changes and will be used by the system to generate recommended % changes for an employee based on their reviews overall rating.

• Department Budgets will be recorded in new column provided on the Department Details (DDD) table. This is a date sensitive table providing the ability to keep track of past budgets. Maintenance is performed in an existing function IDDP - Define Departments.
• New self service screens will provide the ability for the managers to disperse the allocated department budget as they see fit over their employees. These screen names are WMSPF and WASPF - Balance Pay For Performance Increases.
• WMSPF/WASPF will display the allocated department budget and a derived total of allocated and unallocated money.
• An approval to each of the personnel actions may be made once the allocations are complete . (NOTE: Please see the Roll up Approval Requirements section below).
• Once all approvals required are made an existing function USPA - Update Personnel Actions will be run to apply the PA changes to the active employee records and statistics.
• USAC(mentioned previously) will create compensations for the lump sums awarded to employees with a reward_type of Merit. This step will be recommended to be completed before the running of USPC (also mentioned previously). Merit reward types will not have detail information generated as Incentive types do to reflect the detail dollar breakdown.

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Notes #

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