compensation planning theory · 2020-01-01 · compensation planning theory february 2018 •...
TRANSCRIPT
Compensation Planning Theory
Compensation Planning Theory February 2018
• Define Compensation planning and goals
• Identify the key components & concepts of Compensation Planning
• Define Human Capital Planning (HCP) & HCPRptg tools
• Review the flow and timing of data in and out of HCP
• Identify where to go for additional information and support
Learning Objectives
Compensation Planning Theory February 2018
Handouts
Training Material Overview
On-Line• CalPlanning Job Aids and Materials• Training Evaluation
• Compensation Planning Theory Slide Presentation
• Sample Reports• Compensation Planning To Do
List
Compensation Planning Theory February 2018
Compensation Planning Key Components
Human Capital Planning (HCP) and HCPRptg Tools
Human Capital Management (HCM) Data in HCP
Employees & To Be Hired Employees
Pooled Positions
DeptID Adjustments
Post Training Support
Agenda
6
7
1
2
3
5
4
Compensation Planning Theory February 2018
Compensation Planning
Based on your unit’s strategic plan what is the workforce needed to achieve your goals and how you will fund in the context of budget targets?
Compensation expenses can represent up to 85% of a unit’s total budget making compensation planning a critical part of your budget.
Planners create a compensation plan to reflect all of the planned earnings and benefit expenses for their unit’s employees.
Level of complexity increases as # of employees and mix of employee types and funding sources increases.
Current workforce details dependent on timing and accuracy of data in HR’s Human Capital Management (HCM) employee record source system.
Compensation Planning Theory February 2018
UC Berkeley Employees
Who are our employees?
• Faculty• Staff• Student Workers
Compensation Planning Theory February 2018
To be HiredEmployees Pooled Position
• Employees – the current roster of employees who are funded from your DeptIDs• To Be Hired Employees – placeholders for employees you plan to hire in the
future who will be funded from your DeptIDs• Pooled Position – groups of highly variable employees in job codes with seasonal
fluctuation who are funded from your DeptIDs
How do we categorize our employees for compensation planning?
Compensation Planning Theory February 2018
• Composite Benefits Rate (CBR)• Fee Remission
• Graduate students who hold academic appointments may be eligible for an award for tuition &/or fees awarded by the university.
• The amount of the fee remission students may be eligible for depends on the type of appointment that is held during the current semester.
• General Auto & Employee Liability Insurance (GAEL)• Covers earthquake, cyber, and premium
liability coverage mandated by the UC Office of the President
• Charged and budgeted as a percentage of salary
Employee Benefits
• Monthly Pay Rate represents the amount of money employees are paid for a full-time month of work.
• Earnings Distribution defines the planned salary funding distribution by Entity, Account, Fund and CF1 in HCP. The Distribution % serves as the ~proxy FTE in HCP.
• Full Time Equivalent (FTE) unit indicates the workload of an employee in a way that makes workloads comparable across various contexts. An FTE of 1.0 is equivalent to a full-time employee, while an FTE of 0.5 signals half of a full work week.
• Salary Expense auto calculated product of the Monthly Pay Rate * the Earnings Distribution % or ~proxy FTE in HCP.
Compensation Planning Key ConceptsEmployee Salary
Compensation Planning Theory February 2018
CBR• Charged and budgeted as a percentage of salary • Rates include most, but not all, costs traditionally known as fringe benefits• Excluded costs are
• Graduate Student Health and Fee Remissions• GAEL• Vacation Accrual• All other costs in account series 52XXX
Composite Benefits Rate (CBR)
Compensation Planning Theory February 2018
$
Compensation Planning
• Faculty• Staff• Student Workers$
2. Create Employee Salary & Benefit Plans• Salary Expenses• Benefits
To be HiredEmployees Pooled Position
1. Manage our Workforce
$ $
$
$$
Compensation Planning Theory February 2018
Compensation Planning To Do List
Create a Compensation Planning To Do List
Make a Fidelity Appointment
Complete Recharge Form
Enroll in Navigating HCP class
1. How many employees do I have in my entity by type • Faculty • Staff • Student Workers
Compensation Planning Theory February 2018
Compensation Planning Key Components
Human Capital Planning (HCP) and HCPRptg Tools
Human Capital Management (HCM) Data in HCP
Employees & To Be Hired Employees
Pooled Positions
DeptID Adjustments
Post Training Support
Agenda
6
7
1
2
3
5
4
13Compensation Planning Theory February 2018
Human Capital Planning (HCP)
Human Capital Planning allows planners to• Create next year’s Operating Budget for Compensation Expenses using
Employee data from our HR system, Human Capital Management (HCM)• Revise your current year Compensation Forecast by reviewing Actuals-to-date
and impacts of strategy changes, allowing us to align our resources in year.
HCP(Human Capital
Planning)
• Plan for future changes to calculate impact to employee budget data
• Plan for future hires plus additional compensation expense by DeptID
• Manage distributed expenses at the employee and DeptID level
• Review auto-calculated expenses based on accurate Fringe, GAEL, and Fee Remission rates
14Compensation Planning Theory February 2018
HCPRptg Tool HCPRptg
HCPRptg provides pre-defined or canned reporting module with Point of View (POV) member selection options to create user defined reports.• Use to view Human Capital Planning (HCP) compensation plan
data for future year Operating Budgets, in year Forecasts and Actuals
• Provides visibility to both employee level and summarized data • Source Systems: Personnel Payroll System (PPS) for monthly
actuals, EDW for saved Plan data
15Compensation Planning Theory February 2018
• HCP001 – Employee Salary by Fund and Job CodeUse to review plans by one compensation account at a time created in HCP after the simplification of HCP (FY18 Forecast Working and later)where we planned by employee and job code. The report displays the Job Code # and description along with the employee name and employee ID.
• HCP001 – Prior Feb 2018 sHCP –Employee Salary by Fund and Position Run to view plans by one compensation account at a time created in HCP prior to the simplification when we planned by employee and position. The report displays the Position number along with the employee name and employee ID.
• HCP002 – Comp and Non-Comp Expense Variance –Scenario vs Actual displays detailed salaries and non-comp expenses planned vs. actuals
• HCP002- Prior Feb 2018 sHCP Comp and Non-Comp Expense Variance –Scenario vs Actual
• HCP003- Job Code Trend by Actual Payroll $ and FTE presents actual payroll FTE for one compensation account for 5 prior fiscal years by Job Codes
HCPRptg Reports Prior and Post Feb 2018
16Compensation Planning Theory February 2018
Reporting Only Planners
Tool • CalRptg • HCPRptg • CalPlan• CalRptg
• HCP• HCPRptg
Actions
•RunCalRptg reports
•Analyze reports
•Run HCPRptg reports
•Analyze reports
• Input financial plans
• Run & analyze CalRptg and CalPlan reports
•Input employee plans
•Run & analyze HCPRptg reports
Security• Global
Read Only• Entity
Read Only• Entity Read &
Write Access• Entity Read &
Write Access
Who Uses HCP?
17Compensation Planning Theory February 2018 17
Dimensions define how data is organized within the CalPlanning tools. Here are the dimension members available to work with in HCP. The members in grey font are read only in HCP and the black font are editable.
HCP Dimension Members
VersionWorking
Entity1_26301
AccountA40XXX
YearFY18
ScenarioForecast
Chart1C1_SUMPLN
Fund5 Plan Only Fund Members
PeriodYearTotal
2018
2019
Forecast*
Operating
Budget*
Working* YearTotal
Jul to Jun
(closed months)
(open months)
Examples
Compensation &
fringe accounts
Total Compensation
Expenses
A50211
A50212
53070
Current Funds
Unrestricted-Plan
Designated-Plan
Restricted Gifts-Plan
Restricted Endowments
and FFEs – Plan
Contracts andGrants – Plan
Examples
C1_SUMPLN*
C1_3S0XXX
C1_3S00MC
C1_3BEARS
Read OnlyEditable
Examples
1_EVCP3
1_10135
1_HAAS3
1_10372
1_COCHM
1_10965
EmployeeE12345678
Job Code0213
Examples
Carol Christ
Saul Perlmutter
Examples
1100_Professor-Acad Yr
4722 _Assistant III
7709_Financial Analyst 3*Dimension label not displayed on forms
18Compensation Planning Theory February 2018
HCP Employee & Job Code Dimensions
• Existing employees were fed from HCM along with their Employee ID, Job Code and Earnings Distribution(s)
• Member name for existing employees
= E + Employee ID
• Plans for new or To-Be-Hired (TBH) employees can be created in HCP to capture their compensation expenses in your budget
EmployeeE12345678
Job Code0213 Financial Analysis
Manager 2
• Job Code – the alpha suffix + job code description
• Fed from HCM
• Determines Salary Account in the Earnings Distribution
19Compensation Planning Theory February 2018
Compensation Planning Key Components
Human Capital Planning (HCP) and HCPRptg Tools
Human Capital Management (HCM) Data in HCP
Employees & To Be Hired Employees
Pooled Positions
DeptID Adjustments
Post Training Support
Agenda
6
7
1
2
3
5
4
20Compensation Planning Theory February 2018
`
BFS/BAIRS/Cal Answers Financials CALPLANNING HR
Planning
Reporting
HCPRptg
HCM Human Capital Management
Position Management
Actuals &Encumbrances
Actuals
OperatingBudget &Forecast Plan Data
Summarized Actuals
Summarized CompensationPlans
DetailedEmployee
Compensation Plans
BAIRSCalPlan
Detailed Employee
Payroll & FTE Actuals
Detailed Employee
DataHCP
Human Capital Planning
5xDaily *Monthly
FY2019Annual
Snapshot5xDaily *
HCM snapshot on 2/06/2018 of
active data from 7/01/2017 and
forward.
5xDaily*
Flow and Timing In Our Financial Landscape
Nightly
PPSPayroll Personnel
System
Monthly
Nightly
Smart View
Detailed Employee
Data
CalRptg
BFS
* Data pushes every three hours between 9:00am and 9:00pm. Check http://budget.berkeley.edu/systems/calplanning for more on the data push schedule and updates to CalPlanning system availability.
Berkeley Financial System
Berkeley Administrative Initiative Reporting System
Nightly
Cal Answers Financials
Actualized Forecast
EBC** Live 12.19.17
**compensation includes fee remission
Actualized Forecast Live Feb
2018
21Compensation Planning Theory February 2018
HCM Employee Data Refreshed in HCPA snapshot of Human Capital Management (HCM) data was taken on 2/06/18 EOB and includes all active employee data on and after 7/01/17. This data will be available in HCP when we re-open CalPlanning on 2.21.18.
HCM(Actual Employee and Job Code
data)
HCM SnapshotAs of 2.07.18
HCPPlanned Employee & Job Code
Compensation Expenses
Employee Data (excluding those in the 12 Pooled Position Job Codes)• Name• Employee ID• Job Code• Monthly Pay Rate• Earnings Distributions
Employee Data refreshed on the Manage Existing Employees & Job Codes forms
Employee Data for Employees in the 12 Pooled Types – (e.g. GSR/GSI, Summer Salary) (Not Refreshed)
Pooled Positions – Planner created and manage ongoing
Additional Compensation DeptID Compensation Adjustments – Planner created
Loaded
$
22Compensation Planning Theory February 2018
• Only REG earnings distribution lines are loaded into HCP from HCM• To plan for other earnings codes (BYA, etc.) not loaded from HCM,
planners can manually enter them into HCP via• Adjusting the employee’s monthly pay rate if additional earning
funded from the same earnings distribution, IF material • If funded from a different earnings distribution, planners can use
DeptID Compensation Adjustment in account 520XX-Other Employee Compensation – Plan or any other available compensation account
HCM Data Flows to HCP
23Compensation Planning Theory February 2018
Planners can view their FY18 Forecast values prior to the February 2018 HCM refresh in HCP via the read-only Jan18HCP.
Jan18HCP
Jan18HCP
Jan18HCP application design reflects the pre-simplified HCP look which will be unfamiliar to new planners.
Compensation Planning Theory February 2018
Deleted from HCP• To Be Hired Positions• DeptID Adjustments
Added • Job Code & Descriptions• Pooled Position Type
FY18 Forecast Working HCP001 ReportDisplays list of employees and Pooled Position funded by Entity selected in POVReflects plan data post February 2018 HCM to HCP refresh and simplification of HCP
Job Codes & Descriptions
Pooled Position Type
Compensation Planning Theory February 2018
HCP001, Employee Salary by Fund and Job Code Report
Report Account PromptsReport POV
Check the Edit Member Names box to type directly into Account Prompt
Click on the Go to Member Selection magnifying glass to choose from the list of available Compensation Accounts .
While the Member Selection box will allow for multiple accounts in the Selected section, do not include more than one.
Use the left and right arrows to move members from the Selected to the Available sections
Compensation Planning Theory February 2018
Exercise 1: Review HCP001 Report
27Compensation Planning Theory February 2018
Compensation Planning To Do List
Create a Compensation Planning To Do List
Make a Fidelity Appointment
Complete Recharge Form
Enroll in Navigating HCP class
2. Is there anything you know about your employees’ data that was not captured in HCM as of 2.06.18?
3. With the refresh of HCM data (as of 2.6.18)into HCP, how many of my employees’ compensation plans need review?
Compensation Planning Theory February 2018
Compensation Planning Key Components
Human Capital Planning (HCP) and HCPRptg Tools
Human Capital Management (HCM) Data in HCP
Employees & To Be Hired Employees
Pooled Positions
DeptID Adjustments
Post Training Support
Agenda
6
7
1
2
3
5
4
29Compensation Planning Theory February 2018
To be HiredEmployees
What do we need to plan for our Employees and To Be Hired employees?
• Monthly Reg Salary• Earnings Distribution by
• Entity• Salary Account (Job Code)• Fund• CF1
• Distribution % ~ proxy FTE
• Benefits (Salary Account)
• Same as Employees • + Start & End Month
30Compensation Planning Theory February 2018
Calculating Planned Salary & Compensation Expenses in HCPTo calculate an employee’s Salary Expense you need a Pay Rate + Earnings Distribution
On the General Ledger Compensation Expense are dispersed to Entity, Account, Fund, Chart1, Chart2 and Program Code using actual distributions (detailed) and do NOT include actual benefits at the employee level. Employee Benefits are consolidated by chartstring.
Salary Expense X =
Earnings Distribution Employee
Planned Pay Rate in Month
• Planned in Month• Employees can have multiple
distributions
Salary Expense X (1 + CBR% + GAEL%)
Total Compensation
Expense=In HCP Compensation Expenses (including benefits) are planned to Entity, Account, Fund, and Chart1 using planned distributions (simplified) by employee.
Compensation Planning Theory February 2018
Exercise 2: You Do the Math! Calculate Employee Salary Expense
Dept ID Fund Chart1Monthly Reg
Rate DistrYear Total
Salary
31650 Restricted-Plan AXF001 $1,000 .25
31650 Designated-Plan AXF001 $1,200 .5
Year Total Salary Expense
Compensation Planning Theory February 2018
Exercise 2: You Do the Math! Calculate Employee Salary Expense
Dept ID Fund Chart1Monthly Reg
Rate DistrYear Total
Salary
31650 Restricted-Plan AXF001 $1,000 .25
31650 Designated-Plan AXF001 $1,200 .5
Year Total Salary Expense
$3,000
$10,200
$7,200
Compensation Planning Theory February 2018
Benefit Rates in HCP for Employees
BenefitCalculation
Basis Employee TypeFY18 Forecast &FY19 Op Budget
CBR Salary Expense
AcademicStaff Limited Students (Graduate and Undergraduate)
40%48%16%
0%
GAEL PayrollExpense All 1.15%
Compensation Planning Theory February 2018
Exercise 3: You Do the Math! Calculate Total Compensation Expense
Dept ID
Salary Account Fund Chart1
Monthly Reg Rate Distr
Year Total Salary CBR GAEL
TotalCompensation
Expense
31650 Academic Restricted-Plan AXF001 $1,000 .25 $3,000 40% 1.15%
31650 Academic Designated-Plan AXF001 $1,200 .50 $7,200 40% 1.15%
Year Total $10,200
Compensation Planning Theory February 2018
Exercise 3: You Do the Math! Calculate Total Compensation Expense
Dept ID
Salary Account Fund Chart1
Monthly Reg Rate Distr
Year Total Salary CBR GAEL
TotalCompensation
Expense
31650 Academic Restricted-Plan AXF001 $1,000 .25 $3,000 40% 1.15%
31650 Academic Designated-Plan AXF001 $1,200 .50 $7,200 40% 1.15%
Year Total $10,200
$4,234.50
$14,300.00
$10,162.00
Compensation Planning Theory February 2018
Compensation Planning To Do List
Create a Compensation Planning To Do List
Make a Fidelity Appointment
Complete Recharge Form
Enroll in Navigating HCP class
4. Are there any To Be Hired employees that I need to plan and when are we planning for them to start?
Compensation Planning Theory February 2018
Compensation Planning Key Components
Human Capital Planning (HCP) and HCPRptg Tools
Human Capital Management (HCM) Data in HCP
Employees & To Be Hired Employees
Pooled Positions
DeptID Adjustments
Post Training Support
Agenda
6
7
1
2
3
5
4
38Compensation Planning Theory February 2018
Pooled Positions
• HCP supports one Pooled Position per DeptID and Earnings Distribution intersection
• Once created Pooled Positions can be managed by adjusting• Average Monthly Pay Rate• FTE• Headcount* (valid for fee remission positions only)
GSI* DeptID
Earnings Distribution
Summer SalaryDeptID
Earnings Distribution
Visiting Prof
DeptIDEarnings
Distribution
Per DiemDeptID
Earnings Distribution
Teacher UNEXDeptID
Earnings Distribution
GSR*DeptID
Earnings Distribution
LecturerDeptID
Earnings Distribution
HCP Pooled Positions allow Planners to budget compensation expenses for fluctuating populations of employees using a single position.
Student Titles(Undergrad)
DeptIDEarnings
Distribution
39Compensation Planning Theory February 2018
HCP Pooled Position Types
12 Pooled TypesVisiting Professors
Adjunct Professors
GSR – Resident*
GSR - Non-Resident*GSI*
Reader/Tutor – Student*
Reader/Tutor - Non-student
Student Titles (Undergrad)
Summer Salary
Teacher – UNEXPer Diem
Lecturer
HCM employee data for employees with job codes mapped to these 12 Pooled types are not loaded into HCP during the annual refresh.
• HCP Planners create Pooled Positions using the Pooled Types on the left
• Pooled Positions do not have individual employee detail
• Total FTE, NOT Headcount is used for calculating Total Salary Expense for the position.
• Headcount is only needed for calculating Fee Remission where applicable*
• Lecturer Pooled Position type does not include those employees with Security of Employment. They will appear in your employee list.
Link to Pooled_Position_Job_Code_Mapping Job Aid
40Compensation Planning Theory February 2018
What do we need to plan for our Pooled Positions in HCP?
• Average Monthly Reg Salary • Earnings Distribution
• Entity• Salary Account (Job Code)• Fund• CF1
• Distribution %*• Benefits • FTE • Headcount (Fee Remission Eligible Job Codes)
Component Source• Planner Calculation• Planner input
• Planner input must = 1• Calc from Planner selected Salary Account• Planner input• Planner input
41Compensation Planning Theory February 2018
HCP Pooled Position Comp Accounts, CBR & Fee Remission FY18 & Planned FY19
HCP Pooled PositionComp
Account* Comp Acct DescCBR/Fringe Account** CBR/ Fringe Acct Desc
CBR RateFY18
Fee Remission
FY18
CBR Rate
FY19^Fee Remission
FY19^Adjunct Professors A50240 Acad Teach-Regular (Default)-Pct A53060 Benefit Assess-Academic Regular 40% 40%GSI A50241 Acad Teach-Exempt from CBR-Pct A530XX_Stat 0 $8,546.00 0 $8,884.00 GSR - Non-Resident A50211 Acad Nonteach-Exempt from CBR (A50211) A530XX_Stat 0 $16,867.00 0 $17,215.00 GSR - Resident A50211 Acad Nonteach-Exempt from CBR-Pct A530XX_Stat 0 $9,316.00 0 $9,664.00 Lecturer A50240 Acad Teach-Regular (Default) (A50240) A53060 Benefit Assess-Academic Regular 40% 40%Per Diem A51231 Staff-Exempt from CBR (A51231) A530XX_Stat 0 0Reader/Tutor - Non-student A50241 Acad Teach-Exempt from CBR (A50241) A530XX_Stat 0 0Reader/Tutor - Student A50241 Acad Teach-Exempt from CBR (A50241) A530XX_Stat 0 $8,546.00 0 $8,884.00 Student Titles (Undergrad) A51231 Staff-Exempt from CBR (A51231) A530XX_Stat 0 0Summer A50212 Acad Nonteach-Limited Benefits (A50212) A53080 Benefit Assess-Limited 16% 16%Teacher - UNEX A50211 Acad Nonteach-Exempt from CBR (A50211) A530XX_Stat 0 0Visiting Professors A50242 Acad Teach-Limited Benefits-Pct A53080 Benefit Assess-Limited 16% 16%
*FY2018-19 Planners are now free to choose which Comp Account they would like for their PP **Mapped to the Comp Account ^ Planned
Compensation Planning Theory February 2018
Compensation Planning To Do List
Create a Compensation Planning To Do List
Make a Fidelity Appointment
Complete Recharge Form
Enroll in Navigating HCP class
5. With the conversion to the simplified HCP design, if you have more than one planned Pooled Position type with the same earnings distribution intersection, they were consolidated into one. Planners MUST review the average monthly salary and earnings distribution FTE and edit as needed.
Compensation Planning Theory February 2018
Compensation Planning Key Components
Human Capital Planning (HCP) and HCPRptg Tools
Human Capital Management (HCM) Data in HCP
Employees & To Be Hired Employees
Pooled Positions
DeptID Adjustments
Post Training Support
Agenda
6
7
1
2
3
5
4
Compensation Planning Theory February 2018
DeptID Compensation Adjustments
• DeptID Adjustments allow for planning of +/-compensation expenses in HCP to capture material monthly $ amounts not reflected in employee and pooled positions plans
• Examples include stipends, vacancies and budget reductions
• Planned against compensation accounts at the DeptID (L7) vs. employee level
• Not to be used to plan for To Be Hired employees• Monthly $ Amount • Earnings Distribution by
• Entity• Account • Fund
• CF1
Compensation Planning Theory February 2018
Compensation Planning To Do List
6. What are total Compensation Expenses for my unit in FY18: • Forecast Working • Forecast Q2 Planner Submission• Operating Budget Final
7. What are total Compensation Expenses in FY19: • Operating Budget Working (vs. Operating Budget 18)
Create a Compensation Planning To Do List
Make a Fidelity Appointment
Complete Recharge Form
Enroll in Navigating HCP class
Compensation Planning Theory February 2018
Converging ProcessesHCM -> HCP
(load of active employee data in HCM as of 2.6.18 )
simplified HCPthis year only
FY18 Forecast copied to
FY19 Operating Budget
Active Employees’ data loaded and extended through FY19.
Monthly pay rate and earnings distribution & % (proxy ~FTE) at the month level now editable.
No Vacant Position information loaded.
No more Vacant Positions
Create To Be Hired employees as needed.
All planned To Be Hired employees in FY18 Forecast Working prior to 2.7.18 were deleted.No planned To Be Hired employees to copy to FY19.
No employee data loaded for the active employees in one of the 12 Pooled types.
Pooled Positions now limited to one type per intersection.If more than one per intersection existed in prior HCP they were consolidated and need Planner review.
Copied consolidated Pooled Positions to FY19 and need Planner review.
No additional compensation information loaded.
Annualized DeptID Adjustment $ in the FY18 Forecast Working prior to 2.6.18 were loaded into the open months of FY18.Closed months actualized with zero.
FY18 DeptID Adjustment $s NOT copied to FY19.
$
Employees
Pooled Employees
To Be Hired
DeptID $ Adjustments
Annual process
Active Employees’ data relevant to FY19 loaded with 3% increase to Monthly Pay Rate.
Compensation Planning Theory February 2018
Thank you!