ADP WORKFORCE NOW® V12 ADP Workforce Now® Compensation · PDF fileADP WORKFORCE NOW® V12 ADP Workforce Now® Compensation Management Automatic Data Processing, LLC ES Canada

ADP WORKFORCE NOW® V12

ADP Workforce Now®Compensation Management

Automatic Data Processing, LLC ES Canada

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Table of ContentsTable of Contents ..................................................................................................................... 2

Welcome ................................................................................................................................... 7

Prerequisites ............................................................................................................................. 7

Duration .................................................................................................................................... 7

Course Objectives .................................................................................................................... 7

Module 1: Introduction to ADP Workforce Now ........................................................................ 8

Additional ADP Workforce Now Modules.................................................................................. 8

ADP Workforce Now Features ................................................................................................ 10

ADP Workforce Now Features (cont.)..................................................................................... 11

ADP Workforce Now Home Page Elements & Descriptions ................................................... 12

ADP Workforce Now Toolbars ................................................................................................ 13

Job Aid: Compensation Management Terminology ................................................................ 14

Module 2: ADP Workforce Now Compensation Management Overview ................................ 16

Compensation and Compensation Management .................................................................... 16

ADP Workforce Now Compensation Management ................................................................. 16

Implementation Setup ............................................................................................................. 17

Compensation Events............................................................................................................. 19

The Compensation Event Process ......................................................................................... 20

Compensation Event Process Stages & Descriptions ............................................................ 21

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Compensation Event Process Roles & Responsibilities ......................................................... 22

Compensation Event Process Roles & Responsibilities (cont.) .............................................. 23

Planning a Compensation Event ............................................................................................ 24

The Compensation Dashboard ............................................................................................... 27

Job Aid: Elements of the Compensation Dashboard .............................................................. 28

Module 3: Completing a Simple Merit Event ........................................................................... 29

The Compensation Event Wizard ........................................................................................... 29

Job Aid: Compensation Event Wizard Checklist ..................................................................... 30

Event Details .......................................................................................................................... 32

Event Details (cont.) ............................................................................................................... 34

Budget Settings ...................................................................................................................... 35

Select Employees ................................................................................................................... 36

Review Managers ................................................................................................................... 37

Review Managers (cont.) ........................................................................................................ 38

Guideline Settings .................................................................................................................. 39

Guidelines ............................................................................................................................... 39

Guidelines (cont.) ................................................................................................................... 40

Summary ................................................................................................................................ 41

Summary (cont.) ..................................................................................................................... 42

Hands on Practice: Accessing the Compensation Dashboard ................................................ 43

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Hands on Practice: Setting Up & Rolling Out the Event.......................................................... 43

Points of No Return ................................................................................................................ 48

Points of No Return (cont.) ..................................................................................................... 49

Making Award Recommendations & Submitting Worksheets ................................................. 50

Managers & ADP Workforce Now Compensation Management ............................................. 51

Managers & ADP Workforce Now Compensation Management (cont.).................................. 52

The Compensation Worksheet ............................................................................................... 53

The Compensation Worksheet (cont.) .................................................................................... 55

Job Aid: Emulations ................................................................................................................ 56

Hands on Practice: Making Award Recommendations & Submitting the Worksheet as aManager ................................................................................................................................. 57

The Review Process ............................................................................................................... 59

The Compensation Event Approval Process .......................................................................... 60

Job Aid: To Approve the Compensation Event for Payout ...................................................... 61

Job Aid: Managing Conflicts ................................................................................................... 62

Hands on Practice: Making Award Recommendations, Reviewing & Submitting Worksheets forApproval ................................................................................................................................. 64

Hands on Practice: Reviewing & Approving Worksheets........................................................ 66

Point of No Return: Approving the Event for Payout ............................................................... 67

Closing the Event ................................................................................................................... 68

Closing the Event (cont.) ........................................................................................................ 69

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Job Aid: Creating a Compensation Notice Template .............................................................. 70

Hands on Practice: Updating Employee Pay Rates ................................................................ 71

Hands on Practice: Creating a Compensation Notice ............................................................. 73

Hands on Practice: Managing & Distributing Compensation Notices ..................................... 74

Points of No Return ................................................................................................................ 76

Module 4: Completing a Bonus Event..................................................................................... 77

Completing a Bonus Compensation Event ............................................................................. 77

Adding Compensation Types and Mapping Them to Earnings Codes ................................... 77

Job Aid: Creating and Mapping Compensation Types to Earnings Codes ............................. 78

Scenario: Incorrect Mapping ................................................................................................... 79

Hands on Practice: Setting up & rolling out a Bonus Event .................................................... 80

Hands on Practice: Making Award Recommendations, Approving & Closing the Bonus Event ............................................................................................................................................... 84

Module 5: Completing a Complex Event................................................................................. 86

Job Aid: Performance Reviews & Compensation Events ....................................................... 87

The Compensation Worksheet: Additional Elements .............................................................. 88

The Compensation Worksheet: Additional Elements (cont.)................................................... 89

Compa-ratios .......................................................................................................................... 91

Lump Sum Awards ................................................................................................................. 92

Lump Sum Awards (cont.) ...................................................................................................... 93

Top-down Budget ................................................................................................................... 94

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Top-down Budget (cont.) ........................................................................................................ 95

Hands on Practice: Setting up & Rolling out a Complex Event ............................................... 96

Hands on Practice: Making Award Recommendations, Approving/Rejecting Recommendations& Submitting Worksheets for a Complex Event .................................................................... 102

Closing a Complex Event ..................................................................................................... 107

Hands on Practice: Closing a Complex Event ...................................................................... 108

Module 6: Special Circumstances ........................................................................................ 110

Employee Transfers.............................................................................................................. 110

One-time Payments .............................................................................................................. 112

One-time Payments (cont.) ................................................................................................... 113

Module 7: Compensation Management Reporting ............................................................... 117

Manager and Budget Details Report .................................................................................... 117

Manager and Budget Details Report (cont.) ......................................................................... 118

Worksheet Details Report ..................................................................................................... 119

Custom Reports .................................................................................................................... 120

Module 8: Tools & Resources ............................................................................................... 122

The ADP Client Service Centre ............................................................................................ 122

The Bridge ............................................................................................................................ 123

The ADP Workforce Now® Support Centre .......................................................................... 124

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WelcomeADP Workforce Now® gives you a single-entry system that brings together all the tools youneed to meet your organizational goals and to improve your bottom line - from HR, Payroll,Time & Attendance, to Recruitment, Performance, and Compensation Management.This course has been designed to provide you with the knowledge and hands on experienceyou need to be comfortable using the Compensation Management module of ADP WorkforceNow.

Prerequisites· Getting Started with ADP Workforce Now· Security Overview for ADP Workforce Now· Workflow Management for ADP Workforce Now· Payroll for ADP Workforce Now· Custom Reporting Basics for ADP Workforce Now

DurationThis course is 4 hours long.

Course ObjectivesUpon completion of this course, you will be able to:

· Explain key components associated with ADP Workforce Now CompensationManagement.

· Identify Compensation Management setup requirements· Set up, roll out and process a simple merit Compensation Event· Set up, roll out and process a bonus Compensation Event· Set up, roll out and process a complex merit Compensation Event· Identify special circumstances associated with Compensation Events· Export built-in Compensation Event reports· Generate custom Compensation reports

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Module 1: Introduction to ADP Workforce NowWith the rock-solid ADP Payroll® platform as its base, this easily expandable and adaptableHCM solution provides industry-leading HR functionality through a modular suite of cohesiveservices.ADP Compensation Management works in conjunction with many other products and featuresto create a seamless solution. Examples of modules that integrate directly with CompensationManagement are Performance and Payroll.

Additional ADP Workforce Now ModulesTime & AttendanceTimecard information is entered or scheduled in the Time & Attendance module and then sentto Payroll for processing.Example: Timecards have been gathered and approved for processing. The Time &Attendance Practitioner selects the Prepare for Payroll process to initiate the transfer of data toPayroll. Time & Attendance data joins the Payroll data at the Verify Payroll stage and appearson preview and process reports. Once the Payroll is processed, payments are made toemployees.Time OffADP Workforce Now® allows time off information to be entered once and visible in both thePayroll and Time Off sections of ADP Workforce Now®. The two modules also have a directfeed so that Time information feeds directly into Payroll.Example: An employee is entitled to two weeks of vacation. An employee requests one weekof vacation through the employee self-service request feature. The time off request isapproved and the vacation is automatically paid out through Payroll on the required dates.

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Human ResourcesWith configurable workflows, online records and intelligent reporting you can reduce the timespent on paperwork, and increase the time dedicated to managing and transforming yourpeople – the lifeblood of your organization’s success. Enter personnel information once and allmodules link to that information.Example: Sally Hodgen is hired as a salaried employee and needs to be paid. Sally's nameautomatically appears in Payroll due to the integration with the HR module. A one-time payadjustment may be needed if the employee starts mid pay period.BenefitsFurther optimize your investments in HR and Payroll with ADP’s benefits administrationmodule. Use the simple interface to create eligibility rules and make online enrolment availableto employees. Manage your benefits budget by easily monitoring billing discrepancies to helpstop premium overages.TalentWith a solid recruiting strategy, branded career sites and intuitive dashboards, you can makehiring decisions in a snap. Create a pay for performance culture by aligning employee’s goalsto those of your organization and tracking progress. Spot trends and identify candidates forcareer growth.AnalyticsGet actionable, trusted insights powered by ADP® DataCloud. Access an array of key metrics- from absence rates to turnover rates — aligned with the most current Human CapitalManagement (HCM) best practices, plus customizable filters and views for virtually limitlessanalysis options that are as easy to use as consumer apps.Analytics from ADP enables you to spot workforce trends and diagnose issues quickly andeasily.

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ADP Workforce Now FeaturesMobileThe free ADP app has an elegant interface that provides you and your employees with accessto HR, time, benefits and Payroll- related data anytime, anywhere.

· Features a simple, informative design for employees, Managers, and businessexecutives

· Accessible from smartphones and tablets*· Empowers employees to remotely perform self-service tasks such as clock in

and clock out, view pay statements, T4s, time-off balances, and benefits planinformation, including employee and employer premium contributions

· Enables Managers to view and approve timesheets and time-off requests online

Cloud-Based Document StorageGo green and harness the power of ADP Document Cloud for fast, simple and secure accessto employee digital documents. With its advanced search functions, permission-based filesharing and detailed audit reporting, you can easily ensure the right people have the rightaccess to information when and where they need it.Acquire the added protection of encrypted files role based security, auditing, full back-up, anddisaster recovery for your electronic documents – which is much more secure than loose paperfilesSecurityThe Security feature provides Practitioners with the ability to create security at:

· Menu level: Practitioners can specify which menus and submenus for which eachprofile has view and/or edit privileges.

· Person and company level: Where personal level access is granted.Example: The Payroll Supervisor is responsible for opening the Pay Cycle, reviewing thepreview reports for accuracy and then processing the Payroll once validated. Create a customPractitioners profile that provides access to the menu options for opening a Pay Cycle,previewing reports and processing Payroll.

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ADP Workforce Now Features (cont.)Effective DatingThe Effective Dating feature allows you to identify when a task will take place, today or in thefuture. Future-dated entries remain in ADP Workforce Now® until the date entered falls withinthe Payroll period dates.Example: Annual raise amounts have been confirmed for all associates in the company. ThePayroll administrator has decided to be proactive and key the entries in advance with a date inthe future. The entries will not take effect until the effective date falls within the Payroll perioddates.Workflow ManagementWorkflows can be designed to create a notification or an approval process when specificchanges are made. When a change is made, the workflow is triggered and a notification or anapproval request goes to the recipient's message center for review.Example: Using the example of a raise, Sally (Manager) enters a raise into the system forJacob (employee). A workflow is then triggered sending a notification to Sally's Manager withan approval request to Brenda in HR. The item must be approved by Brenda before thechange is processed in Payroll.

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ADP Workforce Now Home Page Elements & DescriptionsHome Page Elements

Icon Name Description

Mega Menu The mega menus appear differently based uponthe employee's menu security access.

Sub MenuEach mega menu contains a sub menu,providing users with additional activities fromwhich to select.

Support link Access Learning Bytes, online help andadditional training documents.

Log Out link Use this link to log out of ADP Workforce Now®securely.

PreferencesChange your preferred language, MessageCentre preferences, contact info, password andsecurity questions.

Message CentreWorkflows trigger automatic messages to theMessage Centre. You can view notifications, oredit/approve changes from the Message Centre.

Calendar Click this icon to display the Calendar.

My Profile Holds an employee's contact information.

Search Search for: People, Activities, Reports or aDirectory.

People MenuAccess employee-level information such as Paydetails, Personal Information, EmploymentInformation, Benefits Information, and StatutoryCompliance.

Process MenuAccess tasks such as Payroll Cycle activities,Utilities (Importing/Exporting), Benefits, Tools,Workflows, Time & Attendance, HR, Time Off,Talent and Year End.

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ADP Workforce Now ToolbarsSome icons are common to all toolbars, whereas others fields differ based on the menu theyappear in. The following chart displays the common elements found on all toolbars:

Toolbars

Icon Name Description

Help Icon

The Help icon appears at the page and fieldlevel.Page Level Help: Provides help regarding allfields on the current page.Field Level Help: Provides specifics regardingthe current field.

Search

The Magnifying Glass is found at both companylevel and the employee level.Company Level: When located on a companylevel page the window displays a list of allcompanies listed within a client ID.Employee Level: When located on an employeelevel page, the window displays a list of allemployees in the selected company code.Note: The list of employees displayed isdetermined by the filter selected.

Scrolling Search

These icons appear at both the company andemployee levels.Company Level: When selected, togglesbetween companies.Employee Level: When selected, togglesbetween employees.

Action IconThis icon appears in the all toolbars on all pages.It provides you with access a variety of otheroptions or pages based on the page it appearson.

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Job Aid: Compensation Management TerminologyKey Terms and Definitions or Descriptions

Term Definition/Description

Compensation A process organizations use to reward employees for the work theyperform.

Job DesignThe process of organizing work as group of tasks, arranging and definingthe job process and structure at the workplace depending on the jobanalysis performed.

Job Evaluation The methods and practices of ordering jobs or positions with respect totheir value or worth to the organization.

Compa-ratio

A compa-ratio (short for “comparative ratio”) is a formula commonly usedto assess the competitiveness of an employee’s pay level. A compa-ratiois the ratio of an employee’s actual salary (the numerator) to the midpointof the applicable (the denominator) salary range. To calculate anindividual’s compa-ratio, divide their salary by the midpoint of the assignedsalary range.

CompensationEvent

An occasion when a company grants its employees monetary rewards inthe form of either a base pay increase, or a one-time payment award.

CompensationDashboard

Provides information for all compensation activities, and is the key startingpoint for users to complete most compensation-related tasks.Starting Point:Practitioner: Process > Talent > Compensation DashboardManager: My Team > Talent > Compensation Dashboard

CompensationEvent Wizard

An easy to use tool that helps Practitioners setup and rollout aCompensation Event.

CompensationEvent Timeline

Each Compensation Event has an associated timeline that includes aReview Period, Recommendation Period, Cut-Off Date, and EffectiveDate.

CompensationWorksheet

A Compensation Worksheet is generated when an event is rolled out.· Managers use the Compensation Worksheet to apply performance

ratings and award recommendations for their direct reports.· Practitioners and Event Approvers access the Compensation

Worksheet to approve/reject recommendations and track eventprogress and status information.

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Key Terms and Definitions or Descriptions

Term Definition/Description

Conflicts

Conflicts occur when the Compensation change that the Practitioner istrying to process, coincides or clashes with some other activity, such as ahire/rehire date change, if that other activity occurred after the cut-off date,but during the recommendation period.Conflicts must be resolved for the Compensation Event to be processed inADP Workforce Now Payroll.

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Module 2: ADP Workforce Now CompensationManagement OverviewCompensation and Compensation ManagementCompensation is a process organizations use to reward employees for the work they perform.There are different types of compensation including base pay, sales commission, bonus, profitsharing, stocks, or other non-cash taxable items. Compensation Management is the practice ofrewarding the right people to the greatest extent for the most relevant reasons. Anorganization’s competitiveness is driven through its people (“talent”). Organizations useCompensation Management to attract, retain, develop, and motivate their people.Compensation Managers are responsible for:

· Job design and evaluation· Identifying and maintaining competitive wages and salary grades· Designing and implementing compensation-related policies and programs,

including:o Annual, merit, and across-the-board increaseso Bonuses and other one-time paymentso Incentive and reward programs

ADP Workforce Now Compensation ManagementADP Workforce Now Compensation Management is part of the ADP Workforce Now TalentManagement module. It is used by Compensation Managers as part of a complete HumanCapital Management (HCM) solution that includes HR and Payroll.ADP Workforce Now Compensation Management helps you drive a Performance culture. Itallows you to:

· Manage multiple award types, such as merit, bonus, and adjustments.· Tie employee’s performance to the rewards process.· Define budgetary guidelines in compliance with your company policies.· Define a hierarchy based approval process (using a Workflow).· Generate customized Compensation Notices to communicate the good news to

your employees.ADP Workforce Now Compensation Management ensures that every Compensation Eventflow seamlessly from Performance to Payroll.

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Implementation SetupADP Workforce Now Compensation Management requires the following data to be complete inyour ADP Workforce Now database:

· Employee name, job title, salary/pay rates, e-mail· Job information· Reports-to information· Earnings codes· Employee self service· Manager self service· Practitioner rights· Manager rights· Approval workflow· Rating scales· Compensation types (created and mapped to appropriate earnings code)· Compensation change reasons· Security and access permissions

ADP Human Capital Management Consultants (HCMC) assist you with your setup duringImplementation.

Preliminary Setup

If Then You Need To Starting PointA Compensation Eventmust be approved byhigher level managementbefore updating payrates

Define an Approval Workflowin ADP Workforce Now

1. Setup > Approval Process> Approval Paths

2. Setup > Approval Process> Activity Configuration

A Rating Scale is used todefine guidelines formaking awardrecommendations

Setup the Rating Scale Setup > HR & Talent > RatingScales

To set up a merit eventthat includes lump sumpayments

1. Setup the Lump SumCompensation Type

2. Map the Lump SumCompensation Type to theappropriate Earnings Code

Setup > HR & Talent >Compensation Types

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Preliminary Setup

If Then You Need To Starting PointTo set up a bonus event 1. Setup the Bonus

Compensation Type2. Map the Bonus

Compensation Type toappropriate Earnings Code

Setup > HR & Talent >Compensation Types

A base pay increasemerit event is associatedwith a reason for thecompensation change

Set up the CompensationChange ReasonsAssign a CompensationChange Reason to an event

Setup > Tools > ValidationTables

Managers will be makingaward recommendations

Ensure that a Manager isassigned to each employeeincluded in the eventEnsure Managers haveaccess to the employeesincluded in the event

People > Employment >Employment Profile > ReportsTo field under Position tileSetup > Security > AccessPermissions

A Compensation Eventuses pay grades tocalculate employees’compa-ratio

1. Set up pay grades2. Assign pay grades to job

titles

Setup > Tools > ValidationTables

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Compensation EventsA Compensation Event is an occasion when a company grants its employees monetaryrewards in the form of either a base pay increase or a one-time payment award.

Compensation Event Types & DescriptionsTypes of Compensation Events & Descriptions

Type DescriptionMerit Increase A pay increase tied to employee performance. Many

organizations conduct merit increase programs on an annualbasis; but may do so more or less frequently.The process organizations follow to evaluate performance andtie it to pay increase varies from organization to organization.

Across-the-boardIncrease

A uniform rate increase granted to all employees or groups ofemployees in the organization.

Cost-of-livingAdjustment

A rate increase tied to changes in the cost of living (COL).Many employers use the federal government’s COL indices todetermine the amount. This increase can be applied across-the-board or to a specific group of employees in anorganization.

Bonus A bonus is a one-time payment awarded to eligible employeesbased on the criteria established by the organizations.Frequently, payments are part of an ongoing incentiveprograms that reward employees on a periodic basis.

Lump Sum Lump sum awards are one-time awards used to rewardemployees who are not eligible for a merit increase yet theirperformance warrants an award.

Regardless of the type of Compensation Event, events can be further classified as simple orcomplex.

· A simple event is one type of event setup and processed by itself. For example,an annual merit event for all employees across the organization.

· A complex event is a combination of simple events processed as one event. Forexample, an annual merit increase for all employees across the organization andemployees above their salary pay grade are also awarded a one-time payment.

Simple or complex, events follow the same six stage process; however the processing ofpayroll is slightly different.

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The Compensation Event ProcessA Compensation Event consists of six stages, involving four organizational roles. The processensures that a Compensation Event is set up properly for the right group of employees. It hasvarious approval stages to ensure compensation recommendations are awarded appropriately.

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Compensation Event Process Stages & DescriptionsCompensation Event Stages & Descriptions

Stage Description1 You set up the Compensation Event and, when ready, roll it out to Managers to

begin making award recommendations.2 The Managers responsible for awarding compensation use the Compensation

Worksheet to make award recommendations for their direct reports. They submittheir recommendations to higher-level for approval (as defined using theWorkflows).

3 The next higher level (Manager’s Manager) makes award recommendations fortheir own direct reports and approves/rejects the recommendations submitted bythe Manager.Notes:If the Manager’s Manager rejects the Manager’s recommendations, the Worksheetgoes back to the Manager to review and re-submit the Worksheet.The Manager’s Manager may be making recommendations for their own directreports. All recommendations have to be approved by the Manager’s Manager priorto submitting the Worksheets for next higher level approval.This is an optional stage if required per your company setup.

4 The next higher level (Practitioner) reviews all submitted Worksheets, resolves anyconflicts identified in the application, and submits the final recommendations to theApproving Authority.

5 The Approving Authority reviews all submitted recommendations and approves orrejects the Compensation Event.If approved, the event is Ready for Payroll Processing. You receive a messagenotification through the Message Center that the event is ready for payrollprocessing.If rejected, you receive a notification that the Compensation Event requiresadditional review before it can be submitted again.

6 Close the Compensation Event by processing the payments and generating anddistributing Compensation Notices to employees informing them of the paychanges.

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Compensation Event Process Roles & ResponsibilitiesCompensation Event Process Roles & Responsibilities

Role Responsibility

Approving Authority(Example: SusanDearborne)

The person in the company who has financial authority toassign a budget and approve a Compensation Event byidentifying its financial impact. The Approving Authority might bethe Vice President of Human Resources, the CEO, or thedivision head, for instance.

Practitioner(Example: Donald East)

You, as the Practitioner, allocate the budget to all Managersresponsible for awarding Compensation. You submit allCompensation recommendations to the Approving Authority forfinal approval.

Manager’s Manager (VPor Director)(Example: AnthonyAlbright)

The Manager’s Manager is the next level up Manager, from thelowest level Manager, awarding recommendations for theirdirect reports and also approves/rejects the lowest levelManagers’ recommendations.

Manager(Example: SamuelBarbato)

The Manager is the lowest level Manager responsible forawarding Compensation to direct reports.Note:To verify a Manager you go to: People -> Employment ->Employment Profile. Under the “Position” heading the field titledManagement Position should say “Yes”.

Note:Actual job titles may differ from company to company.

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Compensation Event Process Roles & Responsibilities (cont.)

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Planning a Compensation EventBefore you setup your event, gather all the information you require such as the type of event,timelines for the event, who will be included in the event, what is the budget, and so on.Below is the list of questions that must be determined prior to setting up an event:

Planning a Compensation Event

Questions NotesWhat type of Compensation Event areyou implementing?

Do you use salary/pay grades and redor green circle rates?

Do you give lump sum payments inaddition to, or in lieu of salaryincreases?

Do you pro-rate award amounts?

Will the event require approval? If so,by whom?

What is the applicable review period forwhich the increase or payment is beingawarded?

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Questions NotesWhat recommendation period you wantto establish for the event?

What budgetary parameters, if any, doyou use? For example:

· Do you use bottom up ortop down budgeting or nobudget at all?

· Will you allocate specifiedbudgets to differentemployee or organizationalgroups?

What employees are to be included inthe event, all employees, one or moregroups of employees, and so on?

Are the HR Practitioners responsible forsetting up and managing theCompensation Event/s have the rightsand permissions they need?

Do the Managers have the access theyneed to make, submit, reject andapprove recommendations for theirdirect or indirect reports?

Do you use ADP Workforce NowPerformance?

· If so, will you tie employeeperformance reviews to theCompensation Event?

· If so, do you haveperformance review

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Questions Notesinformation in ADPWorkforce Now?

· If not, will you apply ratingsto appropriate awardamounts?

Do you provide guidelines to Managerson how to distribute reward amounts? Ifso, what are those guidelines?

Will the same ratings and guidelinesapply to all employees? If not, howmany different rating scales andcorresponding budgetary guidelines doyou plan to use?

Will you have multiple compensationevents? If so, will you need differentrating scales for each event?

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The Compensation DashboardThe Compensation Dashboard provides information for all compensation activities, and is thekey starting point for you to complete most of your compensation-related tasks.Starting Point:Practitioner: Process > Talent > Compensation DashboardManager: My Team > Talent > Compensation Dashboard

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Job Aid: Elements of the Compensation DashboardKey elements of the Compensation Dashboard and descriptions are listed below:

Elements of the Compensation Dashboard

Element DescriptionActive Events View all Active events.

Historical Events View all historical events.

Compensation Event Name/Title of the event.

Details Details illustrate the relationship of the event to its assignedbudget. The legend at the bottom right-hand side corneridentifies what each symbol means.

Start and End Dates The recommendation period for the event.

Progress Bar Indicates the progress of the event related to the number ofWorksheets submitted thus far. Click the down arrow to open awindow that provides additional information about the progress.

Budget Bar Indicates how the event is matching up against the budget, forexample: Blue means the event is under budget; Red meansover budget, and so on. Click the down arrow to open a windowthat provides budget details, such as budget used, budgetallocated, and budget utilization, expressed as a percentage.

Status Provides a status of the event, such as setup completed, rolledout, ready for payroll processing, and so on.Note:

The Status Timeline at the bottom shows you where the eventfalls within the timeline.

Action Click the Action arrow to select additional tasks you can performfor an event.

Add Button Click Add to access the Compensation Event wizard.

Delete Button Click in the check box next to an event then click Delete todelete an event.

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Module 3: Completing a Simple Merit EventIn this module, you are going to follow a six stage process to complete an end-to-end meritCompensation Event. In Stage 1, you setup and rollout the event using the CompensationEvent wizard.

The Compensation Event WizardThe Compensation Event wizard is a series of tasks designed to guide you to setup and rollouta Compensation Event. This easy to use wizard allows you to setup the event with all therequired details that serve as guidelines for Managers to work with when making awardrecommendations.

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Job Aid: Compensation Event Wizard ChecklistUse the table below to take notes. Later, you can use this as a job aid when you set upCompensation Events.

Compensation Event Wizard ChecklistStep Description Notes1 Event Details

Enter event name and description.Select compensation type and compensationchange reason.Depending on the type of event, select pay gradesand appropriate award proration method.Select options to send notifications and approvalrequirements.Enter appropriate dates for the event.

2 Budget SettingsSelect the type of budget that will be used for theevent.

3 Select EmployeesSelect the employees to be included in the event.

4 Review ManagersReview the Managers included in the event.Exclude any Managers who do not need to beincluded in the event.Allocate budget dollars assigned to all includedManagers.

5 Guidelines SettingsSelect appropriate guideline method for makingaward recommendations depending on whetherthe event will use performance reviews, ratingscales, or neither.

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Compensation Event Wizard ChecklistStep Action Notes6 Guidelines

Define the parameters or rules that apply to theperformance rating or a rating scale, asdetermined in Guideline Settings step.

7 SummaryReview the details that you defined for the event,make needed modifications, and roll out the event.

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Event DetailsThe Event Details page allows you to enter event name and description. In the generalsettings section, select Compensation Type and Compensation Change Reason for yourevent. Depending on the type of event, you select pay grades and appropriate award prorationmethod. You also select options to send notifications and determine approval requirements.Compensation Event TimelineEach Compensation Event has an associated timeline that includes a:

· Review Period

· Recommendation Period

· Cut-Off Date

· Effective Date

The table below outlines each component of the Compensation Event timeline:

Compensation Event Timeline Dates, Descriptions, and Examples

Date Description ExamplesReview Period Period of time during which

employees performance isreviewed in preparation for aCompensation Event.

Go Green 100 employees’performance review is based on theestablished period of March 1 of thepast year to February 28 of thecurrent year.

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Compensation Event Timeline Dates, Descriptions, and Examples

Date Description ExamplesRecommendationPeriod

Period of time in whichManagers can makecompensationrecommendations (usingCompensation Worksheets).

After completing performancereviews, Managers have fromMarch 15–30 to make awardrecommendations.

The Recommendation Start Date isthe earliest date that you can rollout the event to your Managers.

Cut-Off Date The date on which a snapshotof the database is taken forcompensation purposes. Anychanges made after the cut-offdate are not considered for thisevent.Note: The database defaults tothe Recommendation PeriodStart Date. However, the cut-offcan occur after that date.

Go Green 100 sets the cut-off dateon the same day as theRecommendation Period StartDate, March 15.

Effective Date The date on which newcompensation is effective.

Go Green 100’s Effective Date isApril 15.

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Event Details (cont.)Guidelines and Best Practices to Establish Compensation Event Timeline DatesFollow the guidelines listed below when establishing dates for a Compensation Event.

· If you change the Recommendation Period Start Date before rolling out the eventto Managers, you must also change the Cut-Off Date. It will not automaticallyupdate.

· Best Practice: Set the Cut-Off Date and the Recommendation Period Start Dateto the same date.

· Any changes made to employee records after the Cut-Off Date may result inconflicts in the event during the final recommendations stage.

· ADP Workforce Now applies pay increases to the start of the pay period in whichthe Effective Date falls. When the Effective Date of pay increase is after the pay-period start date, the first pay-cheque reflects the higher rate of pay as of thepay-period start date. Therefore, you may need to make pay adjustments.

· Best Practice: Align the compensation effective date and the pay period startdate. Otherwise, you have to manually adjust employees' pay for that first periodto account for the difference in pay between the pay period start date and theeffective date of pay increase.

· If you use ADP Workforce Now Performance, the Review Period defined for theCompensation Event must align to the review period for the associatedperformance policy in order for Performance and Compensation to work together.

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Budget SettingsApply one of the following two budget options to a Compensation Event, or apply no budget atall.

Budget Options & Descriptions

Budget DescriptionBottom-Up The organization obtains award recommendations from the Managers to form

a budget estimate.If you select the bottom-up budget option, ADP Workforce Now CompensationManagement provides you an estimate for the Compensation Event, based onthe specified target award that is either a percentage of employees’ salariesor a stated dollar amount per employee.

Top-Down A company officer (higher level management) defines the budget andallocates dollars throughout the organization.Note:With the top-down budget approach, you can only allocate budget amounts onthe basis of dollars, not percentages. However, you can define eventguidelines (targets, recommended, and allowed amounts) using dollaramounts or percentages. In addition, Managers can enter awardrecommendations using percentages.

Notes:You cannot use bottom-up and top-down budget methods for the same event. If you want to doso, create two events: Event 1: use the bottom-up method to estimate a budget that will thenbe allocated to Managers in Event 2.Organizations commonly use top-down budgeting.

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Select EmployeesSet up the employee selection criteria using Add Eligible Employees window to includeemployees in your event. You can build your own list, use an existing list, or search foremployees in an alphabetical order.

The information in the table below is an example used to define the employee population foran event.

Employee Search Options and Descriptions

Option Description ExampleBuild EmployeeList or SelectSaved List

Build an employee list usingADP Workforce Now definedlists.

<all employees><status is active>

Build an employee list usinga system-defined list and/orcriteria, such as companycode, job title, location, andso on.

Status = ActiveLocation = Toronto

Select a saved list that youcreated in ADP WorkforceNow.

Select any of the lists that you createdin Manage My Lists.

FromAlphabetical List

Select employees from analphabetical list.

Select individual employees eligible forthe bonus event alphabetically, by lastname.

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Review ManagersBased on the employees selected for the event, ADP Workforce Now CompensationManagement identifies Managers to include in the event. Each Manager included in the eventmakes award recommendations for their direct reports and reviews the recommendationsmade by their subordinate Managers. The Review Managers step of the wizard has two crucialcomponents of the Compensation Event setup:

· Reviewing the management structure through which budget amounts areallocated and through which the Worksheets flow.

· Allocating budget amounts for the event (for events that use Top-downbudgeting).

To view the Managers assigned for an event, select one of the following:· Most Senior Managers in the event· All Managers

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Review Managers (cont.)Review the following elements of this page:

Review Manager’s Page Elements & Descriptions

Element NotesInformation Message

Review Level field

Recommendation Summary link

Event Budget Details section:· System Estimated field· Allocated for this Event field· Distributed to Managers field· Held in Reserve/Available field

Note:ADP Workforce Now Compensation Management uses existing Reports To relationships, as ofthe event Cut-Off date, to identify Managers and include them in the Compensation Event.Therefore, it is imperative that these be established accurately in ADP Workforce Now.

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Guideline SettingsSelect the performance policy (if you use ADP Workforce Now Performance) or a rating scaleto setup award guidelines for your event.

GuidelinesDefine award guidelines (as percentage or dollar values) for Managers to follow when makingrecommendations.ExampleThe merit award guidelines for an employee with a performance rating of Meets Expectationsare as follows:

· Target: 3%· Recommended range: 1%–4%· Allowed range: 0%–5%

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Guidelines (cont.)Use the table below to determine award guidelines when setting up your CompensationEvents:

Award Guidelines & Descriptions

Award Guideline DescriptionTarget The average percentage or dollar amount that Managers should target

for the aggregate of employees with the rating. The target amount mustbe within the recommended range.

Recommended The percentage or dollar range that the organization defines asappropriate for employees with the rating.

· The minimum recommended amount must be greaterthan the minimum allowed amount.

· The maximum recommended amount must be less thanthe maximum allowed amount.

Allowed The minimum and maximum percentage or dollar amounts thatManagers can recommend for employees with the rating.

· The minimum amount must be less than the minimumrecommended amount.

· The maximum amount must be greater than the maximumrecommended amount.

Notes:When applying guidelines to an event, you can define them using any one guideline or acombination of guidelines. For example, you select Target only for each rating or Target andRecommended, and so on.If you want to provide Managers with a guideline of no increase for any rating, you need toenter zeroes in the Target, Recommended, and Allowed fields. If you do not enter anything inthose fields, no guidelines will be applied.

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SummaryReview all the event setup information you entered in the previous pages of the wizard. Ifchanges are required, use the Previous button or the blue title at the top to navigate to thepage where changes are required. When done, come back to the Summary page to roll out theevent.

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Summary (cont.)Follow the guidelines below when reviewing the setup information to rollout the event:

Review Setup Information and Rollout the Event

If the EventIs

And theRecommendation StartDate Is

Then

Set upcorrectly

Today or earlier 1. Click Done.Result: The Confirm Action window opens,and you are asked to confirm whether youare ready to roll out the event.

2. Click Yes.Result: The event is displayed on theCompensation Dashboard with a status ofRolled Out.

A date in the future 1. Click Done.Result: The event is displayed on theCompensation Dashboard with a status ofSetup Complete.

2. On the appointed date, you need to roll outthe event.

Not set upcorrectly

1. Return to the step that requires editing.2. Make the necessary edits.3. Continue with the process until you

complete the setup.Note:Only users who have full access to the entire ADP Workforce Now database can rollout aCompensation Event. The security and access permissions differ for each user role. Youmust ensure that the users responsible to setup and rollout Compensation Events haveappropriate Universal Access rights.

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Hands on Practice: Accessing the Compensation DashboardUsing the login information provided by your Instructor, log in to the ADP Workforce Nowdatabase and navigate to the Compensation Event Dashboard.Starting Point: URL > Admin Login > User ID and Password

Accessing the Compensation Dashboard

Step Action1 From the Home Page, click Process.

2 Next, click Talent and then click Compensation Dashboard.

Hands on Practice: Setting Up & Rolling Out the EventYou are going to set up the annual merit Compensation Event for subsidiary of Go Green, theGo Green 100, using ADP Workforce Now Compensation Management.Go Green prorates awards for employees based on their hire date.Review Period: ___________________________________________Recommendation Period: ___________________________________Cut-Off Date: ______________________________________________Effective Date: ____________________________________________Starting Point: Process > Talent > Compensation Dashboard

Setting Up & Rolling Out the Event

Step Action1 Click (ADD).

2 In the Event Name field, click the down arrow beside Edit Name; select English(CA) from the displayed list. In the Name field, enter Go Green 100 Annual Merit.

Note: If you click Edit Name, an error message displays. Always, click the downarrow beside Edit Name to enter the name for the event.

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Step Action3 Complete the General Settings section, as follows:

· In the Compensation Type field, select Base Pay.· Result: The Compensation Change Reason field is displayed.· In the Compensation Change Reason field, select MER - Merit.· Select Allow awards to be prorated for the defined review period

and Prorate awards based on employee’s hire/rehire Date.· Select Send event rollout notification to Managers.· Clear the check box for Require this event to be approved before

processing payroll.4 Complete the Review Period section, as follows:

In the Start Date field, enter the date provided.In the End Date field, enter the date provided.

5 Complete the Recommendation Period section, as follows:In the Recommendation Period Start Date field, enter the date provided.In the Recommendation Period End Date field, enter the date provided.Result: The Cut-Off Date defaults to the Recommendation Period start date.Accept the default in the Cut-Off Date field.In the Effective Date field, enter the date provided.

6 Click Save and Exit.Result: The success message is displayed and you go back to the Dashboard.

If your application times out before you complete the Compensation Eventwizard steps and you do not click Save and Exit, you will lose your work.

7 Click the event name Go Green 100 Annual Merit link on the CompensationDashboard.Result: The Event Details page displays.

8 Click Next.Result: The Budget Settings page displays.

9 Accept the default selection Bottom-Up Budgeting.

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Step Action10 In the Estimate the Budget Based On ____ Percent of the Base Pay for All

Eligible Employees field, enter 3.

11 Click Next.Result: The Select Employees page displays.

12 This event includes active employees of Go Green 100 reporting to Samuel Barbato.Click Add Employees.

13 In the Add Eligible Employees window, accept the default selection of BuildEmployee List or Select Saved List and then click Continue.

14 The Advanced Rule Builder window opens. In the Select List field, select Status IsActive from the dropdown list.

15 Click Add Criteria to This Set.In the AND/OR field, select And.In the Filter Options fields, make the following selections:

· Field Name: Company Code· Comparison: Is Equal To· Field Value: Go Green 100

Add an additional criteria to this set as follows:Click Add Criteria to This Set.In the AND/OR field, select And.In the Filter Options fields, make the following selections:

· Field Name: Reports To· Comparison: Is Equal To· Field Value: Barbato, Samuel

Click OK.Result: The list of employees included in the event is displayed.

16 Click Next.Result: The Review Managers page is displayed.

17 Review the sections of the Review Managers page for your event.

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Step ActionNote:Managers can be excluded from the event if they do not have to make awardrecommendations. To exclude one or more Managers, select the Manager/s byclicking in the check box to the left of his/her name/s. Then, click the Excludebutton. A red X is displayed beside each excluded Managers' name.

18 Click Next.Result: The Guidelines Settings page is displayed.

19 The Go Green 100 Annual Merit event is associated with the Annual Merit Reviewrating scale, defining guidelines as a percentage of employees’ salaries.Select Use a Rating Scale to define award guidelines.

20 In the Rating Scale field, select Annual Merit Review Scale.

21 In Define Guidelines as section, accept the default selection of Percentage.

22 Click Next.Result: The Guidelines page is displayed.

23 Enter the guidelines as indicated in the table below:

Rating Guideline AwardExceeds Expectations Target 3%

Recommended 1.5%–3.5%Allowed 1%–4%

Performs as Expected Target 2%Recommended 1%–3%Allowed 0%–4%

Needs Improvement Target 1%Recommended 0.5%–1.5%Allowed 0%–2%

24 Click Next.Result: The Summary page is displayed.

25 Review the event summary information.

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Step Action26 Click Done.

Result: The Confirm Action window opens, and you are asked to confirm whetheryou are ready to roll out the event.

27 Click Yes.

Result: The event is displayed on the Compensation Dashboard with a status ofRolled Out.

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Points of No ReturnIn the ADP Workforce Now Compensation Event process, once you pass certain points, thereis no going back, which means you are unable to go back to make any changes to the event.The graphic here illustrates these key “points of no return”.

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Points of No Return (cont.)You have reached the first point of no return for your event Go Green 100 Annual Merit. Youalready rolled out the event, so you can no longer make changes to it.

If you find a problem or issue with the event you just rolled out, take the following actions:1. Copy the rolled-out event and correct the problem or issue in the copied event.2. Terminate the original event and move it to the Historical Events tab in the Compensation

Dashboard.3. Roll out the copied, corrected event.Best Practice:

· Do not rollout an event until the start of the Recommendation Period.· You can create the event and save your work using the Save and Exit button in

the Compensation Event wizard at any time. This way you can come back andmake additions or changes to the event as many times as needed to completethe event setup and ensure it is correct before rolling it out.

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Making Award Recommendations & Submitting WorksheetsThe event is ready for Managers to begin making award recommendations using theCompensation Worksheet. Managers are notified about the event rollout through the MessageCenter, if that option was selected during event setup. Otherwise, you have to manually informthe Managers.

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Managers & ADP Workforce Now Compensation ManagementThe Managers can access the Message Center notification in two ways:1. As soon as they login, the message displays on the screen.2. Managers click the Message icon from the top, which opens a message window.

Note:You may receive a duplicate message center notification, especially if you are a higher levelManager and/or an event approver assigned to work on the event. Delete or ignore one of thetwo messages. The graphic below shows an example of a duplicate message.

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Managers & ADP Workforce Now Compensation Management (cont.)To begin making award recommendations, Managers can access the Compensation Event inone of two ways:1. Click on the Action (…) icon in the Message Center.2. Navigate to My Team > Talent > Compensation Dashboard.

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The Compensation WorksheetManagers view the list of all Compensation Events assigned to them. They access theCompensation Worksheet using the Action arrow for the assigned event and begin makingaward recommendations for their direct reports.

Key elements of the Compensation Worksheet and their descriptions are as follows:

Compensation Worksheet Elements and Descriptions

Element DescriptionEvent Header Provides details, such as the Event Name, Progress & Budget bars

Review and Recommendation Periods, Effective Date, and access tothe View Detailed Progress page.

WorksheetHeader

The Select Worksheet field displays the highest level event approverby default. You select the owner of the Worksheet using the downarrow.Depending on the selection, you can view only the Worksheet owners’direct reports (Assigned Award Recipients) or All EligibleEmployees who are participating in the event.To further define the list of employees, use View Employee Filtersoptions.

Worksheet The Worksheet displays employees included in the event. It is in thissection that Managers make award recommendations and higher-levelManagers can view Subordinate Manager's recommendations,depending on the option they select under Select Worksheet field.

Profile Includes employee profile information, such as job title, position startdate, home department, associate ID, position ID, and other details.When you click the graph icon beside Salary History, a windowdisplays showing the employee’s salary history graphically. You canhover over points in the graph to see details.

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Compensation Worksheet Elements and Descriptions

Element DescriptionAward Calculator Managers use the Award Calculator to explore different award

amounts. It provides information about the award guidelinesestablished during setup.

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The Compensation Worksheet (cont.)Sample Compensation Worksheet

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Job Aid: EmulationsIf you do not use Manager self service or do not want Managers to enter their ownrecommendations, then ADP Workforce Now Compensation Management provides you withan option to make recommendations on behalf of the Managers. This option is calledemulation. By using emulation, you can complete, submit, and approve Worksheets as if youwere the Manager.To Emulate a ManagerTo enter recommendations on behalf of a Manager follow the steps below:Starting Point: Process > Talent > Compensation Dashboard

Emulation Steps

Step Action1 In the row for Go Green 100 Annual Merit, click (Action) and select Access

Worksheet.2 In the Select Worksheet field, click Go Green 100 Annual Merit to display the list

and then select <Manager Name> you wish to emulate.Note: If the list doesn’t display, click the sign beside the event name and theManager names until you find your desired Manager.

3 Click (Action) and select Emulate Worksheet Owner.4 A Confirm Action window displays. Click Yes to proceed.

Result: You are emulating the <Manager>.

To Stop Emulation· From the Compensation Worksheet:· Click the Submit Worksheet button. This brings you to the Compensation

Dashboard and emulation stops automatically.· Click the Action arrow beside Select Worksheet field and then select Stop

Worksheet Emulation.· From the Compensation Dashboard:· Select the Action arrow and then click Manage Emulation Rights option.

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Hands on Practice: Making Award Recommendations & Submitting theWorksheet as a ManagerGo Green 100’s Manager, Samuel Barbato, wants to award recommendations for his directreports as follows:Samuel's Direct Reports Performance Rating to be AwardedPeter Biggins Performs as Expected

Edward Bonner Exceeds ExpectationsAlbert Delaney Performs as ExpectedCarlo Garland Performs as ExpectedBradley Thomas Performs as Expected

Using the credentials provided to you, make award recommendations on behalf of Samuel andsubmit the Worksheet.Starting Point: Process > Talent > Compensation Dashboard

Making Award Recommendations & Submitting the Worksheet as a Manager

Step Action1 In the row for Go Green 100 Annual Merit, click (Action) and select Access

Worksheet.2 In the Select Worksheet field, click Go Green 100 Annual Merit to display the list

and then select Samuel Barbato.Note: If the list doesn’t display, click the sign beside the event name and theManager names until you find your desired Manager.

3 Click (Action) and select Emulate Worksheet Owner.Result: A Confirm Action window displays.

4 Click Yes to proceed.

5 Select the performance rating for each employee, as indicated in the table above.Note: If you selected to have awards auto-populated, the target awards will bedisplayed in the % Award fields for each employee. If the values don't auto-populate or you change the ratings, then you have to manually enter them.

6 Change the values in the Award % field for Albert Delaney as instructed by yourTrainer and notice the changes.

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Making Award Recommendations & Submitting the Worksheet as a Manager

Step Action7 Change Peter Biggins’ award recommendation.

In the % Award field, enter 2.75.Press the tab key.Result: Peter Biggins’ award amount recalculates to reflect a 2.75% increase.

8 Click Submit Worksheet.Result: A Confirm Action window is displayed. Click Yes to proceed.

9 You have successfully submitted a Worksheet as a Manager.

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The Review ProcessWhen a Manager makes an award recommendation and submits the CompensationWorksheet, the next level Manager (Manager’s Manager) reviews the recommendations madeby the Manager and makes their own recommendations on the Worksheet.When the next level Manager submits their own Worksheet, s/he is approving the Manager’srecommendations and submitting recommendations for their own direct reports for approval.This process continues until all next level Managers in the event have made their awardrecommendations.ExampleFor your event, Go Green 100, Samuel Barbato made and submitted his recommendations.His next level Manager is Donald East, who will now make recommendations for his own directreports (if they are included in the event) and review and approve/reject Samuel’srecommendations. Once Donald is done, he submits the Worksheet to his next higher level inthe chain-of-command and so on.

All higher levels up the chain-of-command can do the following:· Review and change award recommendations made by Managers (also called

subordinate Managers).· Make recommendations outside of the established guidelines that were setup

during Stage 1.· Submit Worksheets to the next level Manager in the chain-of-command, with or

without changes.· Reject Worksheets submitted to them by the subordinate Managers, thereby

returning that Worksheet to the Manager one level down.· Apply filters to view employees whose awards are flagged for review, outside the

recommended range, or outside the allowed range.

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The Compensation Event Approval ProcessIf, during event setup, you elected to require event approval before processing payroll, theperson designated as the Approving Authority receives a notification in the Message Centerthat the event is ready for approval. The Approving Authority must approve the event before itcan be processed for payroll.Set Up RequirementsIf your organization requires events to be approved before processing payroll, then you needto do the following:

· Set up an Approval Workflow so that the event flows to the appropriateApproving Authority.

· Select the check box for Require This Event to be Approved before ProcessingPayroll in Step 1: Event Details of the wizard when setting up the event.

To Approve the Compensation Event for PayoutThe Approving Authority reviews the recommendations, and can do any of the following:

· Change award recommendations· Exceed the allowed limits defined for the event· Apply filters to employees· Enter comments.

Depending on the action performed by the Approving Authority, the following may occur:

Approving Authority’s Action and Result

Action ResultApprove The approving authority approves the event, with or without changes:

· The event status changes to Ready for Payroll Processing.· You receive notification through the Message Center that the

event is ready for payroll processing.Reject The Approving Authority rejects the event, with or without changes:

· The event status does not change.· You receive a notification through the Message Center that the

event is suspended.· You review the Compensation Worksheets again, make any

necessary adjustments, and resubmit the Worksheets forapproval.

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Job Aid: To Approve the Compensation Event for PayoutThe Approving Authority performs the following steps to approve an event:Starting Point: Process > Talent > Compensation Dashboard

Event Approval Steps

Step Action1 If you are the Approving Authority, you can access the event Worksheet from the

Message Center notification.Optional: If you are emulating the Approving Authority, then in the row for the event,click (Action) and select View Worksheet for Approving.

Result: The Event Details window opens.2 Review the event's details and then close the window.

Result: The Confirm Action window opens.3 Click Yes.

4 Review the Compensation Worksheet.

5 Click Approve Event.Result: The Confirm Action window opens.

6 Click Yes.

Result: The event is approved and ready for closing and payroll processing.Note:User roles with highest level of access permissions can emulate the Approving Authority.

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Job Aid: Managing ConflictsThe system identifies a conflict when the compensation change that you are trying to processfor an event, coincides or clashes with some other activity, such as a hire/rehire date change, ifthat other activity occurred after the cut-off date, but during the recommendation period.Resolving Conflicts to Proceed with the EventWhen you finalize recommendations for an event, the Manage Conflicts page displays with alist of conflict/s that occurred. You must take an action for each conflict in order to move theevent forward.

The table below outlines various types of conflicts, a description and a possible resolution foreach conflict type:

Conflict Types and ResolutionsConflict Type ResolutionThe employee’s annual salary haschanged outside of thecompensation event.

Do one of the following:· Suspend the award for this event.· Accept the original award based on

the previous salary.· Accept the new award based on the

new salary.

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Conflict Types and ResolutionsConflict Type ResolutionThe employee’s status is no longeractive.

Continue with the recommended award or suspendit.

The employee has one or morepending salary changes that canaffect the award.

Continue with the recommended award or suspendit. You can review or delete the pending salarychanges on the employee's Pay Rates page.

The employee’s currency haschanged. In this event, only theevent-designated currency can besupported.

Change the employee’s currency to the eventcurrency or suspend the recommendation. You canchange the currency on the employee’s Pay Ratespage.

The hire or rehire date changed andwill affect the prorated value andthe amount of the award.

Continue with the recalculated award or suspend it.You can review or change the employee’shire/rehire date on the employee’s Job Profilespage.

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Hands on Practice: Making Award Recommendations, Reviewing &Submitting Worksheets for ApprovalFor your event, Go Green Annual Merit, emulate Donald East, the next level up Manager, toreview and approve Samuel's recommendations. Donald does not have any of his own directreports included in this event, so he will not be making any recommendations.Starting Point: Process > Talent > Compensation Dashboard

Making Award Recommendations, Reviewing & Submitting Worksheets for Approval

Step Action1 Navigate to the Compensation Worksheet for Go Green 100 Annual Merit Event.

2 In the Select Worksheet field, click Donald East to display the list of his directreports.Note: No direct reports of Donald are part of this event, the list will be blank.

3 Click (Action) and select Emulate Worksheet Owner.Result: A Confirm Action window displays. Click Yes to proceed.

4 Click All Eligible Employees.Result: The list expands to include Samuel's employees.

5 Review Samuel's recommendations.

6 Click Submit Worksheet.Result: A Confirm Action window opens with a warning that all changes are finaland cannot be edited.

7 Click Yes.Result: Donald approved Samuel's recommendations and submitted them to thenext level Manager for review.

8 Emulate Anthony Albright and review recommendations made. Then, submit theWorksheet.

9 Emulate Susan Dearborne and review recommendations made. Then, submit theWorksheet.

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Making Award Recommendations, Reviewing & Submitting Worksheets for Approval

Step ActionNote: When you emulate the highest Manager, to submit all the Worksheets for theevent, you see a Reject Worksheet button.

Note:If you are emulating a Manager or a Manager’s Manager, you can:

· Save and exit the Worksheet at any time, without submitting it.· Stop emulating at any time (Refer the Job Aid: Emulation).

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Hands on Practice: Reviewing & Approving WorksheetsYou submitted all of the Worksheets for Go Green 100 Annual Merit Event. No conflicts wereidentified. It’s time to finalize the recommendations and submit them for final approval.Starting Point: Process > Talent > Compensation Dashboard

Reviewing & Approving Worksheets

Step Action1 On the Go Green 100 Annual Merit event Worksheet, in the Select Worksheet field,

confirm that Go Green 100 Annual Merit is selected or select it using the downarrow.

2 Click All Eligible Employees.Result: All recommendations are displayed. Review the recommendations.

3 Click Finalize Recommendations.

Result: A Confirm Action window opens with a warning that all changes are finaland cannot be edited. Click Yes to proceed. The Compensation Management -close Event - Pay Rate Update page displays.

Note:When you finalize recommendations, you are approving all of the recommendations made byall the Managers included in the event.

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Point of No Return: Approving the Event for PayoutYou have reached the second point of no return. Once a Compensation Event is approved,you cannot change award recommendations.

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Closing the EventThe last stage in the Compensation Event process is closing the event. This stage consists oftwo key tasks:1. Updating pay rates (merit increase), or applying recommendations (one-time payment).2. Generating and distributing Compensation Notices to the employees.

Updating Pay RatesEmployee pay rates can only be updated after the event is approved and the event statuschanges to Ready for Payroll Processing.

· If the Compensation Event is pending approval from the Approving Authority, youhave to wait for the event to be approved and the status to change to Ready forPayroll Processing.

· If the Compensation Event does not require approval, then the statusautomatically updates to Ready for Payroll Processing. You can access theUpdate Pay Rates page to begin the payroll process.

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Closing the Event (cont.)Generating and Distributing Compensation NoticesThere are three ways to distribute notices to employees:

· E-mail· Message Center· Printing and mailing out a printed copy

To send compensation notices to employees, you can either:· Create a Compensation Notice template, OR,· Use the default Compensation Notice template provided by ADP Workforce Now.

The graphic below shows a sample Compensation Notice sent to employees.

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Job Aid: Creating a Compensation Notice TemplateListed below are the steps to create a custom Compensation Notice Template:Starting Point: Setup > HR & Talent > Compensation Notice Templates

Creating a Compensation Notice Template

Step Action

1Click (+) Add.Result: the Notice Template page displays.

2 In the Template Name field, enter <Name e.g.: Merit Notice> for the template.

3Click the down arrow beside Edit Title and Content andselect English.Result: the Edit Compensation Notice window opens.

4 In the Notice Title field, enter <Title e.g.: Merit Compensation>

5In the Notice Content field, enter <content that you want to display to employees ontheir Compensation Notice>.Optional: Click SPELL CHECK, to ensure there are no errors.

6 Click Done.

7 In the Header Graphic field, click Change to upload graphics, such as a CompanyLogo. Click Remove if you wish to change the graphic you just uploaded.

8

In the Preview section, select the type of Compensation notice you want to previewusing the down arrow and then click Show.Result: A preview of the template opens. (Note: This varies based on the Browseryou are using.)

9 Close the preview.

10 Come back to the Compensation Notice Template page and make any edits, ifrequired.

11 Click Done to save your new custom Compensation Notice Template.

Note:By Default, ADP Workforce Now provides a template Compensation Notice that clients canuse as a starting point.

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Hands on Practice: Updating Employee Pay RatesThe Go Green 100 Annual Merit event is approved and ready for processing. Follow the stepsbelow to proceed with updating employee pay rates:Starting Point: Process > Talent > Compensation Dashboard

Updating Employee Pay Rates

Step Action1 In the row for Go Green 100 Annual Merit, click (Action) and select Process

Payroll and Close Event.Result: The Compensation Management – Close Event page, Pay Rate Update tabis displayed.Note:In situations when event approval is not required from the Approving Authority, theCompensation Management – Close Event Page automatically displays when thefinal approver clicks the Finalize Recommendations button.

2 Click Update Pay Rate button.Result: The Confirm Action window opens.

3 Click Yes.Result: The Compensation – BasePay Batch window opens, and pay rates arebeing updated.

4 The Compensation – BasePay Batch window closes in a few seconds.Result: The Update Pay Rate button is deactivated, and the View Log Files link isdisplayed.

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Updating Employee Pay Rates

Step Action5 Verify the Current Rate and New Rate columns – the new pay rates are processed

for the employees.Also, verify by navigating to the employees Employment Profile page. Example:Verify Edward Bonner's pay rate update by doing the following:Navigate to Edward's Employment Profile page. (People > Employment >Employment Profile - Search for Edward Bonner)

In the Regular Pay tile, you see the details. Alternate option is to click (edit). Themerit increase is displayed in the timeline.

6 Optional: You can also confirm employee pay rate updates from the following:Verify Input page: Process > Payroll> Verify Input > Action arrow beside PayrollOverview > Employee ChangesPayroll Cycle: Process > Payroll > Payroll CycleTransaction Proof and Payroll Register or Register Reports: Process > Payroll >Preview Payroll > Click Action arrow to select View Preview Results

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Hands on Practice: Creating a Compensation NoticePrepare the compensation notice for your event Go Green 100 using the default template.Starting Point: Process > Talent > Compensation Dashboard

Creating a Compensation Notice

Step Action1 Access the Customize Notice Settings tab using the Action arrow.

2 The Customize Compensation Notice page is displayed. Here, select CustomizeNotice Settings and, in the Allow Notice Settings to Be Edited Until field, enterthe date five days prior to the event effective date.Note:Once the date in the Allow Notice Settings to be Edited Until field passes, thecontent is no longer editable.

3 In the Compensation Notice Template field, select Compensation Notice.Note:You can use the custom template if you created one using the Job Aid: Creating aCompensation Notice Template above.

4 Click the down arrow beside Edit Title and Content and select English.Note:If you click on Edit Title and Content it gives an error message. Remember toalways click the down arrow beside Edit Title and Content.

5 In the Notice Title field, enter 20XX Merit Compensation, with XX being thecurrent year.Note:You can customize the content in the Notice Content field.

6 Optional: You can customize the notice template with your company’s logo byuploading the graphic in the Header Graphic field.

7 Preview your compensation notice, by selecting the options under Preview fieldand then clicking Show.

8 Click Done.

Note:You can generate customized notices prior to updating employee pay rates. Follow the samesteps as discussed above; however, access the Compensation Notice Settings tab from theCompensation Management – Close page.

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Hands on Practice: Managing & Distributing Compensation NoticesThe pay rate updates for all employees included in the Go Green 100 Annual Merit Event areprocessed. The Managers have met with the employees and discussed about the increasesthey received as part of this event. Now it is is time to send out compensation notices to theseemployees.Starting Point: Process > Talent > Compensation Dashboard

Managing & Distributing Compensation Notices

Step Action1 In the row for Go Green 100 Annual Merit, click (Action) and select Manage and

Distribute Notices.Result: The Manage and Distribute Notices page, Manage Notices tab is displayed.

2 Select All Eligible Employees to see all the employees in the event.

3 Click Select All.

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Managing & Distributing Compensation Notices

Step Action4 Click Notify Employees.

Result: The Confirm Action window opens.5 Click Yes.

Result: The Notify Employees icon is displayed next to each employee’s name,indicating that the employees were notified.

6 The employees receive their Compensation Notices through the Message Centernotification.

7 Alternate option is to generate PDF versions to e-mail or print and mail them outusing the Generate Notice section.

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Points of No ReturnYou have reached the third and fourth points of no return.

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Module 4: Completing a Bonus EventCompleting a Bonus Compensation EventA bonus is a one-time payment awarded to eligible employees based on the criteriaestablished by the organizations, such as a bonus paid as part of an on-going incentiveprogram.ExampleYour company’s compensation structure for sales employees provides them with opportunitiesto earn quarterly bonuses based on the number of units of product they sell.Bonus events can be set up in the same way as a merit event, using the same six stageprocess.Before getting started, ensure that the Bonus Compensation Type is mapped to theappropriate earnings code for your company.

Adding Compensation Types and Mapping Them to Earnings CodesIf a Compensation Event involves awarding one-time payments, such as bonuses or lump sumawards, then it is important to set up the corresponding Compensation Types in ADPWorkforce Now and map them to appropriate earnings codes.

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Job Aid: Creating and Mapping Compensation Types to EarningsCodesListed below are the steps to create Compensation Types and map them to Earnings Codes:Starting Point: Setup > HR & Talent > Compensation Types

Creating and Mapping Compensation Types to Earnings Codes

Step Action

1Click (+) Add.Result: The Add Compensation Type page displays.

2 In the Name field, type the name for Compensation Type.

3 In the Status field, keep the default Active. Click Done.

4

Once you save the Compensation Type, click the Action arrow, then select MapEarnings Codes action item to map the Compensation Type.

5

Select the Earnings Code to map to the Compensation Type for each CompanyCode and click Done.

Notes:The Base Pay and Lump Sum Compensation Types are delivered with ADP Workforce Now.The Base Pay Compensation Type is mapped automatically, while the Lump SumCompensation Type requires to be mapped manually.A client can create additional Compensation Types and map them appropriately as needed.

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Scenario: Incorrect MappingWhen you map Compensation Types to earnings codes, all earnings codes display in the listincluding Taxable Benefit, Regular, Commission, and others that are set up in Payroll for yourcompany. This may cause confusion and lead to incorrect mapping.

Before you begin, ensure you have the list of all Compensation Types and earnings codes tobe mapped. When you begin mapping, carefully select only the earnings code relevant for theCompensation Event payout.

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Hands on Practice: Setting up & rolling out a Bonus EventYour company, Go Green, issues quarterly bonuses with a target of 5% to its sales forcebased on achievement of predefined goals. Several sales executives are receiving a targetbonus of 7%. You need to select those executives from the employees included in the event inorder to assign the increased award percentage.The review period for this event is the current quarter of the calendar year. Using theCompensation Event wizard, set up and roll out the bonus event.Starting Point: Process > Talent > Compensation Dashboard

Setting up & Rolling out a Bonus Event

Step Action1 Click .

Results: The Compensation Event wizard launches.2 Complete Step 1: Event Details as follows:

· In the Event Name field, enter Go Green Quarterly Bonus.· In the Compensation Type field, select Bonus.· In the Target Bonus field, enter 5. The % field is selected by default.· Select Allow Awards to Be Prorated for the Defined Review

Period and Prorate Awards Based on Employee’s Hire/RehireDate.

· Clear the check box for Require This Event to Be Approved beforePayroll Processing.

· Enter applicable dates in each of the following fields:o Review Period Start Dateo Review Period End Dateo Recommendation Period Start Dateo Recommendation Period End Dateo Effective Date

Click Next.3 Complete Step 2: Budget Settings as follows:

Accept the default selection of Bottom-Up Budgeting and Estimate the BudgetBased on the Target Bonus.Click Next.

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Step Action4 Complete Step 3: Select Employees as follows:

Click Add Employees.Accept the default selection of Build Employee List or Select Saved List andthen click Continue.

Complete the Advanced Rule Builder as follows:

Click OK.

5 Select the check box for the following sales directors:· Ethan, Galant· Tyffany, Martinez

6 Click Mass Assign Target Bonus.

7 In the Budget Estimate % field, enter 7.

8 Click Apply.Result: The list of employees displays the appropriate target amounts.Note:When setting up an event with a Bottom-Up budget estimate, you see a similar link,but it is called Mass Assign Budget Estimate. It works the same way that the MassAssign Target Bonus link works. When you enter a different target bonus for one or

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Step Actionmore employees included in the event, the budget estimate increases by thatamount. However, when you access the Worksheet to award Compensation, youdo not see the different values estimated for employees identified during plansetup. The Managers enter the bonus for these employees in the Worksheet at thetime they award Compensation.

9 In Step 3: Select Employees, you have already selected the employees to beincluded in the event.

10 Click on the right side of the Filter Options feature.

11 In the field for the filter that you want to use, make the appropriate selection.Example: In the Job Title field, select DIRSALES - Director of Sales

12 Click Filter.Result: The subset of employees replaces the full list of employees selected for theevent.

13 Make the necessary changes for these employees.

14 In the Filter Options section, click Reset to display the full list of employeesselected for the event.

15 Complete Step 4: Review Managers as follows:Accept the budget defaults for the Managers in the event.Click Next.

16 Associate the bonus event with the Quarterly Bonus Review rating scale. CompleteStep 5: Guideline Settings as follows:Select Use a Rating Scale to define award guidelines.Select Quarterly Bonus Review.Note:If you do not have the rating scale setup for Quarterly Bonus Review, then youneed to create one prior to completing this step. Starting Point: Setup > HR &Talent > Rating Scales.In the Define Guidelines as field, keep the default selection as Percentage.Click Next.

17 Complete Step 6: Guidelines as follows:

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Step ActionSelect Auto-Populate Target Awards for All Employees in the Worksheet.Enter the guidelines as indicated in the table below:

Award Guidelines

Rating Guideline AwardExceedsExpectations

Target 100%

Recommended 90%–105%Allowed 0%–110%

MeetsExpectations

Target 85%

Recommended 75%–100%

Allowed 0%–105%

Does Not MeetExpectations

Target 0%

Recommended 0%–0%

Allowed 0%–0%

Click Next.18 Complete Step 7: Summary as follows:

Review the event summary information and then click Done.Result: A Confirm Action window opens. Click Yes to proceed. The event statuson the Dashboard changes to Rolled Out.

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Hands on Practice: Making Award Recommendations, Approving &Closing the Bonus EventFor the Go Green Quarterly Bonus event, emulate the higher level Managers to approveWorksheets and finalize all recommendations. Process the bonus event for payout.Starting Point: Process > Talent > Compensation Dashboard

Making Award Recommendations, Approving & Closing the Bonus Event

Step Action1 In the row for the event, click (Action) and access the Worksheet.

2 Emulate all the Managers, award recommendations, and submit the Worksheet.Emulate Go Green Quarterly Bonus and Finalize recommendations for the event.Result: The Compensation Management – Close Event page displays.

3 On the Payout Schedules Mapping tab, verify all information is correct beforeproceeding. Also, ensure that the Cost Numbers are appropriately mapped.When ready, select the check box beside the company codes for which you areprocessing the bonus payouts. Click Apply Recommendations.Result: The payments are processed.

Note:If a company code doesn’t have a pay period schedule with the pay date associatedwith the Compensation Event date, then a message displays in theExclusions/Warnings field. You must open a pay period schedule prior to applyingthe recommendations to avoid exclusions/warnings.

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Making Award Recommendations, Approving & Closing the Bonus Event

Step Action4 Verify the payments were processed by accessing the:

· Payroll Dashboard: Process > Payroll > Payroll Cycle· Verify Input page (Process > Payroll > Verify Input > Payroll Overview

> Payments & Adjustment > Compensation Events – Payments)· Transaction Proof and Payroll Register or Register Reports

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Module 5: Completing a Complex EventIn this module, you are going to complete an end-to-end complex Compensation Event thatincludes both a base pay increase and a one-time payment award. This event follows thesame six stage process and incorporates the following attributes:

· Performance Reviews· Compa-ratios· Lump sum Awards (for those employees who might not otherwise receive a

compensation award due to their compa ratio) and,· Top-Down budgeting.

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Job Aid: Performance Reviews & Compensation EventsFor information to flow from ADP Workforce Now Performance to Compensation, it is importantfor the two to integrate with each other.If an event is associated with a performance review, you must ensure that the:

· Performance policies are set up in the application prior to setting up an event.· The review period for the performance review policy is the same as the review

period that you enter in Step 1: Event Details of the Compensation Event wizard.

Performance & Compensation IntegrationIf your company requires employees to be involved in the performance review process, therecan be two possible scenarios:

Performance & Compensation IntegrationIf the Performance Policyassociated with theCompensation Event

Then

Does not require employeesto acknowledge the review

· The performance rating integrates with theCompensation Event when the Managercompletes the review, provided that theManager did not select a rating for theemployee using the CompensationWorksheet.

Requires employees toacknowledge the review

· The Performance Rating column on theCompensation Worksheet is displayed aseditable. If the employee acknowledges therating after the event is rolled out, that ratingis integrated with the event and is displayedon the Compensation Worksheet after theacknowledgement.

· The acknowledgement can happen beyondthe cut-off date, and CompensationManagement integrate the new informationinto the Compensation Worksheet, providedthat the Manager did not select a rating usingthe Worksheet.

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The Compensation Worksheet: Additional ElementsThe Compensation Worksheet associated with a merit event (such as the one you justcreated) has additional information and fields for Managers to use when making awardrecommendations.

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The Compensation Worksheet: Additional Elements (cont.)The table below outlines the additional elements of the Compensation Worksheet:

Additional Elements: Compensation Worksheet

Elements DescriptionsPerformanceRating Field

The performance rating from a completed performance review flows to theCompensation Worksheet so the Manager does not have to select a rating.

Score Column If your company associates a score with an overall performance rating, thescore is displayed in the Score column for each employee.

PerformanceReviews Tab

Lists the performance review actions for the selected employee.

AwardCalculator

Provides Managers with a graphical view of the guidelines for makingaward recommendations that were established during event setup.

· The numbers on the sliding scale represent the range ofallowed award for a given performance rating.

· The green pointer on the sliding scale points to the Targetaward.

· The green area represents the Recommended range· The yellow area represents the Allowed range· The pink area represents anything outside of the allowed

range.· In addition, you also see employee information for each of

the following attributes in the Proposed and Current sections:Salary, Lump Sum, Compa-ratio, Peer Ratio, and Pay Graderange.

Red andGreen Circles

Red circles next to employees’ current salaries indicate that the employeesare being paid above the maximum for their pay grade.Green circle next to employees’ current salaries indicate that theemployees are being paid below the minimum for their pay grade.Tip: Notice that the red circle icon is filled in on the top half, indicating thatan employee is being paid above the pay grade range. The green circleicon is filled on the bottom half, indicating that an employee is being paidbelow the pay grade range.

Peer Ratio Peer ratios are a metric that helps Managers understand how an employeeis paid relative to his or her peers.

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Additional Elements: Compensation Worksheet

Elements DescriptionsPeer ratio is calculated by dividing an employee’s annual salary by theemployee’s peers’ average annual salaries, then multiplying by 100. As theemployee’s salary exceeds that of his peers, the ratio increases.Peer Ratio = Employee’s Annual Salary / Employee’s Peers’ AverageAnnual Salaries X 100Defining Peers in ADP Workforce Now: You can define peers on the Setup> Tools > System Options > General Settings page in ADP WorkforceNow. You can use one or any combination of three elements—job title, paygrade, or location. Once defined, the peer definition applies to allcompanies in your organization.

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Compa-ratiosA compa-ratio (short for “comparative ratio”) is a formula commonly used to assess thecompetitiveness of an employee’s pay level. A compa-ratio is the ratio of an employee’s actualsalary (the numerator) to the midpoint of the applicable (the denominator) salary range. Tocalculate an individual’s compa-ratio, divide their salary by the midpoint of the assigned salaryrange.ExampleEdward Bonner’s salary is $55,702.40 CAD. The midpoint of the salary range for his pay gradeis $50,571.00. Edward’s compa-ratio is 1.10, meaning that he is paid approximately 10% overthe midpoint for his pay grade.

Note:Pay grades and salary structures must be set up in your ADP Workforce Now database inorder to set up Compensation Events that include compa-ratios. This information also servesas a guideline for Managers to use when making award recommendations.

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Lump Sum AwardsLump sum awards are one-time awards. Lump sum awards do not affect an employee’ssalary in the way that a merit increase affects salary.Lump sum awards are used to reward employees who are not eligible for merit increases yettheir performance warrants an award.ExampleGo Green does not permit salary increases for employees who are already on the greater sideof the pay grade. For these employees, if their performance deserves an award, Go Greenrewards them with a lump sum.Donald East's salary is $109,200.00, which is greater than the maximum for his pay grade.Donald is an exemplary performer, so his Manager, Anthony Albright, recommends a lumpsum award.

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Lump Sum Awards (cont.)When Anthony enters this award in the Compensation Worksheet, the dollar amount of theaward is displayed in the Lump Sum column and will be paid as such.

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Top-down BudgetWhen an organization uses a top-down budgeting approach, a company officer defines thebudget for the compensation event and allocates dollars throughout the organization.Allocating a Top-down BudgetAllocation of a top-down budget begins with the company officer providing a budget for theevent to the event creator (Practitioner).You (as a Practitioner) proportionately allocate the budget, first distributing it across the topmanagement tier of the organization. From there, the top-tier Managers proportionatelyallocate their budget to the next level of Managers, reserving a sufficient amount to makeaward recommendations for their own direct reports.This allocation of money cascades down from each management level through to the first levelManagers.Sample Top-down Budget

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Top-down Budget (cont.)Sample Top-down Budget Including Funds Reserved for Direct ReportsThis graphic illustrates the amounts reserved for direct reports at each level of the top-downbudget before allocating funds to the subordinate level.

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Hands on Practice: Setting up & Rolling out a Complex EventSet up the annual merit event for Go Green. This event includes a Performance Policy,Compa-ratios, Lump Sum Awards, and Top-down Budgeting.Review Period: ___________________________________________Recommendation Period: ___________________________________Cut-Off Date: ______________________________________________Effective Date: ____________________________________________

Setting up & Rolling out a Complex Event

Step Action1 Click ADD.

Result: The Compensation Event wizard launches.

2 Complete Step 1: Event Details as follows:· In the Event Name field, enter Go Green Annual Merit.· In the Compensation Type field, select Base Pay.· In the Compensation Change Reason field, select Merit.· Select Use Pay Grades.

Result: A Confirm Action window opens. Click Yes to proceed.· Select Allow Awards to Be Prorated for the Defined Review

Period.· Select Prorate Awards Based on Employee’s Hire/Rehire Date.· Select Send event rollout notification to Managers.· Clear the check box for Require This Event to Be Approved before

Processing Payroll.· In the Review Period section, enter the review period start and end

dates.· In the Recommendation Period section, enter the recommendation

period start and end dates, the cut-off date, and the effective date.3 Click Next.

4 Complete Step 2: Budget Settings as follows:Select Top-Down Budgeting.Result: A Confirm Action window opens. Click Yes to proceed.Click Next.

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Step Action5 Complete Step 3: Select Employees as follows:

Click Add Employees.Accept the default selection and click Continue.Complete the Advanced Rule Builder as indicated in the following graphic:

Click OK.

6 The following employees are part of a different event, we are going to exclude themfrom this event:

· Barry, John· Dainton, Fernand· Dexter, John· Fitzgerald, Gail· Fournier, Patrick· Garland, Carlo· Intermont, Lorraine

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Step Action· Intes, Marie· Kennedy, Marchall· Lovejoy, John

Select the check box for each employees listed above.7 Click Delete Employees.

Note:When you begin searching for employees using the Advanced Rule Builder, theemployee list may include inactive/terminated employee who are not archived. Youcan select these terminated employees and exclude them from your event list.

8 We want to include Barbato, Samuel to this event. He is not in the list of employeesselected for the event. Follow the steps below to add him to the employee list:

· Click Add Employees.· In the Add Eligible Employees window, select From Alphabetical

List.· In the Employee Selection window, search for Barbato, Samuel.· Click the check box beside his name and then click Ok.· Click Next.

9 Review Managers included in the event.In the Review Level section, click All Managers.Result: All Managers included in the event are displayed.

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Step Action10 Enter the budget details for the event:

· In the Event Budget Details section, in the Allocated for This Eventfield, enter the amount budgeted for this event and then press Tab

· In the Budget field for Susan Dearborne, enter the amount budgetedfor her and then press Tab.

· In the Budget field for Anthony Albright, enter the amount budgetedfor him and then press Tab.

· In the Budget field for David Cornier, enter the amount budgetedfor him and then press Tab. In the Budget field for Donald East,enter the amount budgeted for him and then press Tab.

11 Click Next.

12 Complete Step 5: Guideline Settings as follows:· Select Use a Rating Scale to define award guidelines and then

select Annual Merit Review Scale.· Keep Percentage as the Default selection for Define Guidelines as

field.· Select Use Compa-ratios for Defining Guidelines.· In the Number of Compa-Ratio Segments field, select 2.· Click Next.

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Step ActionNotes:For information to flow from ADP Workforce Now Performance to Compensation, itis important for the two to integrate with each other. You must ensure that the:Performance policies are set up in the application prior to setting up an event.Review period for the performance review policy is the same as the review periodthat you enter in Step 1: Event Details of the Compensation Event wizard.

13 Complete Step 6: Guidelines as indicated in the following graphic:

Click Next to continue.

14 Complete Step 7: Summary as follows:Review your entries.

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Step ActionClick Done.Result: The Confirm Action window opens.

15 Click Yes.Result: The merit event with a performance policy, compa-ratios, lump sum awards,and a top-down budget is rolled out.

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Hands on Practice: Making Award Recommendations,Approving/Rejecting Recommendations & Submitting Worksheets for aComplex EventAll Managers included in the Go Green Annual Merit event received a notice that the event hasbeen rolled out. All higher level Managers have agreed to accept the recommendations madeby the Managers and approve the Worksheets. Anthony has given Donald a performancerating of Exceeds Expectations and would like to add a comment to communicate his rationaleto the next higher level for consideration when finalizing recommendations. Provide below arethe recommendations to be made by the Managers for their direct reports.

Award Recommendations

Employee Reports To Performance Rating %Award

Comment

Barbato,Samuel East Donald Perform as

Expected1

Flannigan,Christopher

Cormier,David

Perform asExpected

1

East Donald Albright,Anthony

ExceedsExpectations

2 Donald exceededexpectations, and I amrecommending the maximumincrease of 2%.

Cramer, Neal Dearborne,Susan

Perform asExpected

1

Jones,Elizabeth

Dearborne,Susan

Perform asExpected

1

Emulate all the Managers to make recommendations, approve subordinate recommendationsand submit the Worksheets for final approval.Starting Point: Process > Talen > Compensation Dashboard

Making Award Recommendations, Approving/Rejecting Recommendations &Submitting Worksheets for a Complex EventStep Action1 Access the Compensation Worksheet for Go Green Annual Merit event.

2 Emulate Donald East.

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Making Award Recommendations, Approving/Rejecting Recommendations &Submitting Worksheets for a Complex EventStep Action3 Enter the performance ratings for his direct reports.

Note:Ratings entered in the Compensation Worksheet take precedence over thoseentered in ADP Workforce Now Performance.

4 Click Submit Worksheet.Result: A Confirm Action message displays. Click Yes to proceed.

5 Click Save and Exit.Note:This step allows you to save the work you have completed.

6 Navigate back to the Worksheet. Emulate David and submit his recommendations.Result: A Confirm Action message displays. Click Yes to proceed.

7 Emulate Anthony. Select the performance rating for Donald East as Exceeds JobRequirements.In the % Award field, enter 2.

8 Scroll to the Comments section for Donald East, click .

9 Enter the comment and then click Done.

10 After you have awarded recommendations for Anthony’s direct reports, reviewrecommendations made by his subordinate Managers (Donald and David).

11 You are not making any changes to the subordinate Manager’s recommendations.Click Submit Worksheet to submit Anthony's Worksheet.Result: A Confirm Action message displays. Click Yes to proceed.

12 Emulate Susan Dearborne to make, review, and submit all recommendations. ClickSubmit Recommendations.Result: The Reject Worksheet button is displayed. Susan can reject her orAnthony's Worksheet, if required.

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Making Award Recommendations, Approving/Rejecting Recommendations &Submitting Worksheets for a Complex EventStep Action13 In the Select Worksheet field, select Go Green Annual Merit.

14 Change the view to All Eligible Employees.

15 Finalize the recommendations. Click Finalize Recommendations button.Result: A Confirm Action message displays. Click Yes to proceed.

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Making Award Recommendations, Approving/Rejecting Recommendations &Submitting Worksheets for a Complex EventStep Action16 Optional: You may see the Manage Conflicts page, if a Conflict occurs.

For example, in the following graphic, Samuel Barbato’s salary was changedoutside of the Compensation Event.

Note:If a Conflict is identified, you have to resolve the conflict in order for the event to beready for payroll processing. (Refer the Job Aid: Managing Conflicts)

19 Under Review Conflict Details column, click External Salary Change to review thedetails of the conflict.

4 Close the External Salary Change window.

5 Scroll to the right and under Action field, select Accept New Award/RejectOriginal Award option from the list.

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Making Award Recommendations, Approving/Rejecting Recommendations &Submitting Worksheets for a Complex EventStep Action6 Click Finalize Recommendations button.

Result: A Confirm Action message displays. Click Yes to proceed.7 The Compensation Management – Close Event page displays. The event is

approved and ready to process for payout.

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Closing a Complex EventThe last stage in the Compensation Event process is closing the event. Depending on the typeof event, this stage consists of the following tasks:

· Updating pay rates (merit increase), or applying recommendations (one-timepayment)

· Generating Compensation notices to be sent to the employees (applicable to allevents)

The Go Green Annual Merit event you just processed involves a merit increase and a lumpsum award payment. As a result, on the Compensation Management – Close Event page, dothe following:

· Go to the Pay Rate Update tab to process merit increase.· Go to the Payout Schedules Mapping tab to apply recommendations.· Go to the Compensation Notice Settings tab to generate compensation notices.

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Hands on Practice: Closing a Complex EventProcess the payroll for your Go Green Annual Merit event.Starting Point: Process > Talent > Compensation Dashboard

Closing a Complex Event

Step Action1 In the row for the event, click (Action) and select Process Payroll and Close

Event.2 In the Compensation Notice Settings tab, prepare the Compensation notices to be

sent to the employees.Note:For this event, you can create two different notices, one for employees receivingmerit increase, and other for employees receiving lump sum award.

3 Click the Payout Schedules Mapping tab.

4 Review all the information and select the appropriate company code.Note:You may identify an Exclusion/Warning if the company for which you are trying toprocess the event does not have an open pay period with the pay date on or afterthe Effective Date of the event. You have to open a payroll cycle in order toproceed with applying recommendations and processing the event.

5 Click Apply Recommendations.Result: A Confirm Action window opens. Click Yes to proceed. You come back tothe Compensation Dashboard page which displays all the events. Notice that theevent status is Ready for Payroll Processing.

6 Once again, in the row for the event, click (Action) and select Process Payrolland Close Event.

7 On the Compensation Management – Close Event page, in the Pay Rate Updatetab, review all information.

8 Click Update Pay Rate button.Result: The Confirm Action window opens.

9 Click Yes.Result: The Compensation – BasePay Batch window opens, and pay rates arebeing updated.

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Closing a Complex Event

Step Action10 Click Close.

Result: The Update Pay Rate button is deactivated, and the View Log Files link isdisplayed. When you come back to the Compensation Dashboard, notice the eventstatus, it changes to Closed.

11 Verify the Current Rate and New Rate columns – the new pay rates are processedfor the employees.

12 You can also confirm employee pay rate updates as well as lump sum awardpayments in the following ways:

· Employees Employment Profile page· Payroll Dashboard· Verify Input page· Transaction Proof and Payroll Register or Register Reports

Note:If an Exclusion/Warning is observed when trying to process one-time payments for an event,do one of the following:1. Manually change the active payroll cycle so that the effective date falls within the pay

period.2. Set a reminder to come back to the Payout Mapping Schedules tab to Apply

Recommendations when the pay period; within which the effective date falls, is open.

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Module 6: Special CircumstancesEmployee TransfersIf any transferred employee is part of a Compensation Event, then the following scenarios mayarise:Scenario 1: The Employee is transferred to Another Province of Employment or AnotherBusiness number which requires a second tax form.

· If this employee is attached to a merit increase Compensation Event:· The Rate/Salary change occurs irrespective of the employees transfer date and

the Compensation event dates.· If this employee is attached to a one-time payment Compensation Event:· The one-time payout is rejected irrespective of the employees transfer date and

the Compensation event dates.· You are required to manually process the one-time payment for this employee.

Scenario 2: The Employee is transferred to Another Department with the Same TaxForm.

· If this employee is attached to a merit Increase Compensation Event:· The Rate/Salary change occurs similar to the previous scenario.· If this employee is attached to a one-time payment Compensation Event:· The one-time payout occurs. No manual steps are required.

Verifying Compensation Changes for a Transferred EmployeeTo verify compensation changes for a transferred employee, review the following:

· Employee Transfer page: Starting Point: Process > HR > Transfer Employee· Verify Input page: Starting Point: Process > Payroll > Verify Input· Transaction Proof and Payroll Register or Register Reports: Starting Point:

Process > Payroll > Preview Payroll

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Related Message Center NotificationsIf an employee associated with a Compensation Event is transferred, ADP Workforce Nowsends out a Message Centre notification to all Practitioners; irrespective of their security andaccess permissions.Since transfers are done in Workforce Now Payroll, messages are sent to all Practitionerswhether or not they have access to the employee record or ADP Workforce NowCompensation Management. Delete or ignore messages related to employee transfer, if youdo not have:1. Payroll access2. Access to ADP Workforce Now Compensation Management3. People access to the employee being transferred.

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One-time PaymentsOne-time Payment Not Visible in Pay Data BatchesThe one-time payment Compensation Event payout details do not appear within WFN pay databatches. These payout details are also not visible on the Payments and Adjustments page(People > Pay > Pay and Adjustments).To view if a one-time payout was processed or not, do the following:1. Verify Compensation Events – Payments page

Starting Point: Process > Payroll > Verify Input > Payroll Overview > Payments &Adjustments > Compensation Events – Payments

Note:This information can also be viewed from the Payroll Dashboard.

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One-time Payments (cont.)2. Preview Transaction Proof and/or Payroll Register/Register reports.

Pathway: Process > Payroll > Preview Payroll > Click Action arrow to select View PreviewResults > Select the Report you wish to view.

Employee Requests to Put a Portion of the One-time Payment Money towards RRSPIf your employee requests to direct a portion of their bonus money towards their RRSPcontribution, manually process the payment for the employee, as follows:

One-time Compensation Payment towards RRSP Contribution

Step Action1 Navigate to People > Pay > Pay & Adjustments

2 Using search bar, , search for employee

3 In the Type field, select Bonus Pay from the drop down options list.

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Step Action

Note:The Compensation Payment is always sent as a payment #1. Therefore, if theemployee already has an amount set up in a bonus payment for a different reason,that ‘amount’ would need to be deleted prior to adding in the value for theCompensation payment. After adding the value for the Compensation payment, youcan add back that other ‘amount’ as a payment #2.

4 Click ADD.Result: A four step wizard displays with step 1. Earnings as a default selection.

5 Click on step 2. Deductions.

6 Select the appropriate Deduction Code and enter amount or percentage value.

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Step ActionNote:If an employee wants a certain percent of the one-time payment, such as 60% ofthe bonus, to be sent to their RRSP, then you as a Practitioner need to calculatethe value and input it in the Amount field.

7 Click Done.

When a payroll cycle runs, ADP Workforce Now processes the payroll as normal behavior ofTran code 91. You can verify this under Transaction Proof and Payroll Register/Registerreports.One-time Compensation Payment for On Leave/Terminated EmployeesThe transaction code for a one-time Compensation payment is coded as a bonus payment(TC91). Only active employee can be paid via this transaction code; however, the bonus mayapply to On Leave/Terminated employees.How do you payout one-time payments, such as a bonus or a lump sum amount, tied to aCompensation Event for On Leave/Terminated employees?The options are as follows:

1. For on leave employees, wait until the employee returns from leave. If you need topay the employees on leave prior to their return, then process the payment as aseparate pay.

2. For a terminated employee who is still to be paid, issue the payment as a separate pay.Note: Most companies do not pay bonuses to a terminated employee. In those cases,you as a Practitioner would have to advise the amount of Government Pension Plan(GPP) and potentially the amount of taxes as well since a separate payment would becalculated using pay period taxes and does not do the annualized tax calculation.

3. Alternately, you can issue a manual payment to the employees and update thosepayments by doing a year to date adjustment:

Starting Point: People > Pay > Pay & Adjustments

One-time Compensation Payment for On Leave/Terminated Employees

Step Action1 Using the search bar , search for Inactive/Terminated employee.

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One-time Compensation Payment for On Leave/Terminated Employees

Step Action2 In the Type field, select Bonus Pay from the drop down options list.

3 Click ADD.Result: A four step wizard displays with step 1. Earnings as a default selection.

4 Select appropriate Earnings Code.Enter appropriate amount under Dollars field.Enter appropriate hours under Hours/Units field.

5 Click Done.

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Module 7: Compensation Management ReportingADP Workforce Now Compensation Management provides you with the ability to generateBudget and Worksheet reports associated with an event. The following reports are available(built-in) within ADP Workforce Now Compensation Management:

· Manager and Budget Details Report· Worksheet Details Report

In addition, you can create your own custom Compensation reports using the Custom Reportsfeature.

Manager and Budget Details Report· Only you (as a Practitioner) can generate this report. Follow the steps below to

generate the report:· Access the Compensation Event wizard and navigate to Step 4: Review

Managers.· Click the Export to Excel link.

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Manager and Budget Details Report (cont.)The Manager and Budget Details Report is exported as an excel workbook as shown in thegraphic below.

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Worksheet Details ReportPractitioners and Managers can export Worksheet details after an event is rolled out. Followthe steps below to generate this report:

· Navigating to the Compensation Dashboard.· Click the Action arrow and then select Export Worksheet option.

The Worksheet Details report is also exported as an excel workbook as shown in the graphicbelow.

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Custom ReportsCreate your own custom Compensation reports by including compensation-related fields toyour reports in ADP Workforce Now Custom Reports. The following graphic shows thecompensation-related files in Step 2: Select Fields of the Set Up Report wizard.Starting Point: Reports > Custom Reports > Set Up NewIn Step 2: Select Fields and then select Files from the Filter option.

The table below outlines custom report files that contain compensation-related fields:

Custom Reports Files and Descriptions

File DescriptionCompensationEvents

Contains fields that relate to active and historical CompensationEvents. Select the fields from the following options:

· Budget Settings· Employees· Event Details· Guideline Settings· Managers· Notice Settings

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Custom Reports Files and Descriptions

File DescriptionCompensationTypes

Contains fields that relate to the Compensation Types, which are thepay elements used to process Compensation awards to employees.This file also contains fields that relate to company codes and earningscode mapping for nonstandard Compensation Types, such as bonuses.Select the fields from the following options:

· Earnings Code Mapping· General Information

CompensationWorksheet

Contains fields that relate to processing a Compensation award for anevent and the employees involved in the event.Select the fields from the following options:

· Conflict Resolution· Pay Rate Update· Paydata Batch Settings· Worksheet

Notes:Payments issued via Compensation Management do not appear on the Pay Data SummaryStandard report. As a result, the information related to Compensation payments is not visibleon the Pay Data Summary report. (Reports > Standard Reports > Paydata)Verify this information by accessing other reports, such as the Transaction Proof report, theRegister or Payroll Register reports, and/or other reports. (Starting Point: Process > Payroll >Preview Payroll)

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Module 8: Tools & ResourcesThe ADP Client Service CentreThe ADP Client Service Centre is an online resource available to all ADP clients. Users canaccess a multitude of resources using this tool:

· The Bridge: This is an ADP sponsored online community for ADP clients to shareknowledge, skills and have questions answered by client/ADP within thecommunity.

· The ADP Workforce Now Support Centre: This is an online tool built directly intoWorkforce Now. The tool is designed to provide users with:

o Step-by-Step procedureso Online documentation regarding a variety of subjectso Learning Bytes on a variety of subjects· The Year End Service Center, including reference materials and forms.

Accessing and Navigating the Client Service CentreThe Client Service Centre

Step Action1 Use your Internet browser to log into www.adp.ca.

2 Select the Client Service Centre login, located in the upper-right corner of the page.

3Enter your company code and email address, and then select Login.Result: The Client Service Centre home page displays.

4

Locate the ADP Workforce Now registration area within the Client Service Centre.Select the Learning Bytes link located under the title Training.Results: The Welcome to the Learning Bytes Library page appears, and theLearning Bytes section expands to display all products that have Learning Bytes.

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The BridgeThe Bridge is sponsored by ADP, and is an exclusive online community for ADP clients. Thiscommunity connects HR and Payroll Practitioners from across Canada and provides anenvironment where users can ask questions, find answers, and network with peers. Thecommunity is free, always available, and is an excellent resource for support on a variety ofsubjects.Benefits to Registering for the Bridge

· Allows Payroll Practitioners and HR professionals like you to connect, engageand share information in an easy-to-use, fully accessible online forum.

· Acts as an additional resource for support, frequently asked questions andinformation for ADP clients of all sizes using all products.

· Always on, for 24/7/365 access anywhere in Canada.· Easy to use.

Accessing and Registering for the BridgeThe Bridge

Step Action1 Use your Internet browser to log into www.adp.ca.

2 Select the Client Service Login, located in the upper-right corner of the page.

3 Enter your company code and email address, and then select Login.

4Select The Bridge, from the menu on the left.Result: An overview of what The Bridge is displays.

5 Click the Visit The Bridge link located at the bottom of the overview to register.

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The ADP Workforce Now® Support CentreYou can access to this tool 24/7. This tool provides a variety of help:

· Step by Step instructional information.· Learning Bytes (short 2-3 min instructional videos) on a variety of topics.· Documentation providing you with specific details about the topic searched.

Accessing and Searching the ADP Workforce Now Support CentreThe ADP Workforce Now Support Centre

Step Action1 Select the Support link, located on the top right of the screen.

2Type Payroll into the search field, and then select Enter or the "Magnifying Glass"icon to begin the search.Results: All topics with Payroll display

3 Review the available resources.

4

IF: THEN:

If you want to:

Read documentation: Select Documentation, then select topic

View Step by Step instructions: Select Knowledge, then select topic

View Learning Bytes: Select Learning, then select topic

5Select the Knowledge tab and select the Processing Payroll for MultipleCompanies.Results: A second window opens and the Learning Byte plays.

6 When completed, select the back to support link to return again to the searchscreen.

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Documents

ADP WORKFORCE NOW® V12 ADP Workforce Now® Compensation · PDF fileADP WORKFORCE NOW® V12 ADP Workforce Now® Compensation Management Automatic Data Processing, LLC ES Canada