supporting the salary planning process - fairsail online help the salary... · 2019-11-06 ·...

FS-HCM-SP-AG-201309--R001.00

Fairsail Administrator

Supporting the Salary Planning Process

Version 1.0

Supporting the Salary Planning Process © Fairsail 2013 2

© Fairsail 2013. All rights reserved.

This document contains information proprietary to Fairsail and may not be reproduced, disclosed, or used in whole or in part without the written permission of Fairsail.

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FS-HCM-SP-AG-201309--R001.00

Contents


Contents

Salary Planning Process Overview 4

Related Guides 6

Salary Bands 7

Salary Projections 8

Salary Planning Reports 9

Configuring Salary Planning 12

Process Diagram: Salary Planning 12

Policy Options: Salary Plan 13

Configuring the Salary Pot Field 14

Core Data Fields: Salary 16

Core Data Fields: Benefits 17

Field Sets: Team Member subset 19

Translation Workbench: Salary Planning 20

Action Email Events: HR Requests 23

Index 24


Salary Planning Process Overview

The available salary budget is defined by senior management, typically with HR and Finance involvement. Final details are passed to HR.

HR model the proposed salaries and set up Fairsail to display the model. HR instructs managers to review the recommendations produced by the model.

Managers review the recommendations for their teams, making adjustments to:

• Amounts or percentages

• Effective dates ...and entering rationale for their changes. Proposed figures produce HR Requests which follow standard approval processes. Mangers review and approve the recommendations up through the management levels. HR and Finance are kept informed through reports.

Salary Planning Process Overview Related Guides


HR provide final approval for all HR Requests using the bulk Approve button on the HR Request tab. This locks the proposed changes for all except HR. Proposed changes are not visible through the Collaboration Portal. This step can trigger an Action Email, for example confirming the approval to the Team Member's manager.

When ready, HR use the Finalize button on the HR Request tab to update Team Member records. Finalized records are:

• Removed from the Salary Plan, and no longer summed with others - do not Finalize until all are finally approved.

• Visible as the current salary to all Team Members who can see their own salaries through the Collaboration Portal.

• Available to Payflow for the next payroll run. This step can trigger an Action Email, for example sending a PDF salary increase letter to the Team Member.

Salary Planning enables managers to explore a number of what if... options when deciding how to award salary increases to team members. Fairsail enables you to use the full range of models for salary award distribution, from simple, across the board flat rate increases for all employees to highly complex award patterns dependent on any combination of factors held in Fairsail including:

• Current salary

• Position in salary band

• Time in grade or employment

• Performance rating

• Competency or skill assessment

Salary Planning models can use formulas for calculating the distribution, drawing on Fairsail fields. Fairsail supplies four standard calculations that you can use as supplied, or modify to meet your requirements.

Typically, models use one of three methods to produce an HR suggested increase amount or percentage:

• An entered salary pot for each manager.

• Team Member performance rating against salary band.

• Percentage allocation by department, grade, or other factor.

The process can use Fairsail Salary Projections. Managers then use Salary Planning to allocate amounts or percentages to each of their direct reports. Salary Planning pages display:

• Key information for each Team Member wherever available, typically including: o Months since last salary award o Current salary o Salary band top and bottom o Latest performance rating

• HR suggested increase amounts and percentages for the complete team and for each Team Member.

• Fields for Manager's proposed figures for the complete team and for each Team Member. Updated each time you save the page and color coded to show if they are in line with or over recommendation.

• A field for the Manager to enter the rationale for an award.

Salary Planning Process Overview Related Guides


• The effective date for any award. This is determined by a policy option and can be: o A fixed date in the year. o On the anniversary of a Team Member's start date. o On the anniversary of a Team Member's last salary award. o On the anniversary of a Team Member's last salary award that was not a simple index related or cost

of living award.

• A summary table for your team and all subsidiary teams, color coded for ease of use, enabling quick access to all entered salary information with drill down on subsidiary teams. This gives you a complete picture of the planned salary awards for your part of the organization, and the CEO access to all areas.

You also have access to the detailed Salary Planning pages for the teams run by your direct reports. Fine tuning and rebalancing of awards is then greatly simplified.

Entered figures produce separate HR Requests which can follow standard approval procedures or go through a bulk approval process.

Related Guides A brief guide for managers using the Salary Planning process through the Collaboration Portal:

• Salary Planning for Your Team: What you need to know


Salary Bands A salary band is a range of values for salaries, against which an employee's salary can be compared to discover how low or high on the band they are paid.

To enter a Salary Band:

1. Click the Salary Bands tab.

Fairsail displays the Salary Bands Home page.

2. Click New.

Fairsail displays the New Salary Band page:

3. Enter a Name for the salary band.

4. Enter values for the Bottom and Top of the salary band. You can use local or reporting currencies: o Use local bands to link to Team Members paid in that currency. Do not link Team Members to a local

salary band in a currency they do not use. o If using reporting currency, local currencies are automatically converted to reporting currency.

5. You can specify Quarter 1, Middle, and Quarter 3 values if you want to use a normal distribution from a salary survey.

If you do not specify your own values for Quarter 1, Middle, and Quarter 3, they are calculated for you and entered as an even distribution.

6. Click Save.

When you have set up salary bands for your organization you can link Team Members to the salary bands to set salary ranges for salary planning. To link a Team Member to a Salary Band, go to the Salary Basis section of the Employment Record for the Team Member and enter the correct value in Salary Band.


Salary Projections Salary projections help you to see the financial impact of salary increases and contribute to salary planning by linking Team Members to the projections.

To create a new salary projection:

1. Click the Salary Projections tab.

Fairsail displays the Salary Projections Home page.

2. Click New.

Fairsail displays the New Salary Projection page:

3. Enter a Name for the Salary Projection.

4. Enter projected percentage increases depending on salary band quarter and last performance rating.

Enter values: o In each block for salary band Quarters 1 to 4, and for those Team Members currently paid Below

Band and Above Band. o In the Low and High increase fields, to set lower and upper projections. o For each Level of the performance rating scales you use, with 1 as the lowest rating.

5. Click Save.


Salary Planning Reports

Report Description

Bonus Projection Projected value of planned bonuses for all Team Members, summarized by manager. The report also displays:

• Current annualized salary.

• Bonus percentage.

Compensation and Benefits Annualized value of Team Members' salary and benefits in your organization's reporting currency. Summarized by country. Individual benefits are listed for each Team Member, along with the value of each benefit, and the total value of all benefits.

Employee Cost By Country Annualized cost of all Team Members by country in your organization's reporting currency. The report displays for each country:

• Total annual salary.

• Total benefits.

• Average per Team Member. The report also displays grand totals for your complete organization.

HCM Salary History The most recent salary review awarded to each Team Member. The report displays:

• Annual salary in local and reporting currencies.

• Salary record number (linked to the salary record).

• Salary amount following the last salary award, per paid time unit; for hourly paid employees this is an hourly amount. In local and reporting currencies.

• Annualized salary amount following the last salary award, in local and reporting currencies.

• Exchange rate used to convert local to reporting currency.

• Date and time of the last currency recalculation.

• Reason for the last salary award.

Salary Planning Reports Related Guides


HCM Team Members (By Sal Band Position)

Team Member position against salary band as a percentage, summarized by country. The report displays:

• Work Days Pattern.

• Department.

• Employment status.

• Grade.

• Manager.

• Continuous service date.

• Salary band position as a percentage.

• Years employment.

• Annual salary, in local and reporting currencies.

• Salary currency.

• Average salary band position for the country. The report includes a bar chart displaying average salary band percentage by country.

Proposed Salary Increases Proposed but not yet approved salary increases for all Team Members, summarized by manager. For each Team Member the report displays:

• Name.

• Current salary.

• Proposed increase amount and percentage.

• High projection amount and percentage.

• Rationale.

Salary Point in Time Team Member salaries on a specified date. For today's date configure the filter logic as follows: Filter Logic: 1 AND (2 OR 3)

1. Start Date less or equal "<insert today's date here>"

2. Next Start Date greater than "<insert today's date here>"

3. Next Start Date equals "" For each Team Member the report displays:

• Name.

• Country and Location.

• HR Department.

• Job Title.

• Employment Status.

• Manager.

• Annual Salary at the date specified.

• Salary Currency.

• Start Date for the salary.

• Next Salary Start Date.

• Previous Salary Start Date.

Salary Planning Reports Related Guides


Salary Position in Bands Team Member distribution by Salary Band, with each Team Member's position indicated by Salary Band Quarter. For each Salary Band the report displays:

• Salary Band Name.

• Number of employees per Salary Band Quarter.

• Total number of employees per Salary Band.

• Team Member Name.

• Salary Currency Name.

• Current Annual Salary in local and reporting currencies.

• Bottom and top values.

• Overall grand total number of employees in all salary band quarters. The report includes a bar chart showing employee distribution by Salary Band Quarter within Salary Band.

Salary Position vs. Performance Rating

Team Member numbers allocated to each Salary Band Quarter, broken down by Performance Review Rating. The report includes a stacked bar chart.

Salary Projection Current Review

Team Member salary projections with current Performance Review Ratings, summarized by manager. For each Team Member the report displays:

• Current Salary Start Date.

• Annual Salary.

• Salary Band position as a percentage.

• Performance Rating.

• Low and High Salary Projection Percentages.

• Low and High Salary Projection Amounts. The report includes a bar chart showing the total high projection increase amounts per manager.

Time Since Salary Increase v Performance

Number of months since the last salary change for each of the current Talent Plan Performance Rating groups. The report offers full drill down.


Configuring Salary Planning Salary Planning is activated through:

• Policy options

Including the method to be used to determine when salary increases are to be paid.

• Configuring a field as the Salary Pot Field

The Salary Pot Field contains a formula that calculates the amounts to be recommended. The formula can be one of the pre-configured options supplied with Fairsail Salary Planning, or you can specify your own.

• Field Sets

The Team Member record includes Salary Planning and Salary Planning Team field sets controlling the fields displayed for managers when salary planning. o Salary Planning holds the fields on the manager salary plan page. o Salary Planning Team holds the fields displayed on the team salary planning table.

Process Diagram: Salary Planning

Configuring Salary Planning Policy Options: Salary Plan


Policy Options: Salary Plan

Option Description

Salary Plan Checkbox. If checked, Salary Planning is activated.

Salary Increase Effective Date Method

Picklist. The method to be used to determine the date on which salary increases are to be awarded for users of this policy.

Click the picklist and select from:

• Fixed Date

Salary increases are awarded on a fixed date for all users of this policy. Use Salary Increase Effective Day and Salary Increase Effective Month to specify the date.

• Employment Start Date Anniversary

Salary increases are awarded on the anniversary of each user's employment start date.

• Salary Start Anniversary

Salary increases are awarded on the anniversary of each user's current salary start date.

• Last Non Indexation Anniversary

Salary increases are awarded on the anniversary of each user's last salary increase that was not a result of a standardized cost of living or indexation award.

Salary Increase Effective Day Picklist. Use with the Fixed Date option for the Salary Increase Effective Date Method. Select the fixed day of the month on which the salary award is to be made.

Salary Increase Effective Month

Picklist. Use with the Fixed Date option for the Salary Increase Effective Date Method. Select the fixed month in which the salary award is to be made.

Configuring Salary Planning Configuring the Salary Pot Field


Configuring the Salary Pot Field The Salary Pot Field specifies a field in the Employment Record that carries the formula used to calculate the HR recommended salary increase as a currency amount.

The formula can be as simple or as complex as you need to perform the calculation. Fairsail Salary Planning is supplied with a number of pre-configured fields in the Employment Record to handle standard salary award calculations. These pre-configured fields use the values supplied in a Salary Projection in combination with individual performance ratings:

• Salary High Projection Increase

The high values set in the salary projection for each quarter of a salary band as well as for Team Members with salaries falling below or above their salary band, combined with the performance rating of each Team Member. The resultant percentage is multiplied by the Team Member's annualized salary to produce the increase amount.

• Salary Low Projection Increase

The low values set in the salary projection for each quarter of a salary band as well as for Team Members with salaries falling below or above their salary band, combined with the performance rating of each Team Member. The resultant percentage is multiplied by the Team Member's annualized salary to produce the increase amount.

• Salary Talent High Projection Increase

The high values set in the salary projection for each quarter of a salary band as well as for Team Members with salaries falling below or above their salary band, combined with the Talent Plan performance rating of each Team Member. The resultant percentage is multiplied by the Team Member's annualized salary to produce the increase amount.

• Salary Talent Low Projection Increase

The low values set in the salary projection for each quarter of a salary band as well as for Team Members with salaries falling below or above their salary band, combined with the Talent Plan performance rating of each Team Member. The resultant percentage is multiplied by the Team Member's annualized salary to produce the increase amount.

In all cases, Fairsail handles currency conversions using the exchange rate(s) you specify.

If you wish to build and use your own formula to calculate an annual increase amount, you can create your own custom field in the Employment Record:

1. From your User Menu click Setup.

2. In the left panel go to App Setup > Create > Objects.

3. Select the Employment Record.

4. Scroll down to Custom Fields & Relationships and click New.

5. Specify the new custom field as follows: o Data Type: Formula. o Field Label: a meaningful name such as SalaryPotField_Formula. Fairsail automatically creates the

Field Name based on the Field Label. o Formula Return Type: Currency, to two decimal places. o Formula: use standard Salesforce logic syntax to enter the formula you want to use. Enter a

description and help text to help you identify, and others to use, the formula in the future. o Field-level security: set consistently with the rest of your system. o Add the field to the Employment page layout.

Configuring Salary Planning Configuring the Salary Pot Field


6. Click Save.

When you have the formula you want to use for salary planning, you must specify the field in Fairsail HCM configuration:

1. From your User Menu click Setup.

2. In the left panel go to App Setup > Installed Packages.

3. In the main window, against Fairsail Human Capital Management, click Configure.

4. Scroll down the Setup section. In Salary Pot Field enter the name of the field in the Employment Record carrying the formula that calculates the HR recommended salary increase:

Use the form:

fHCM2__Salary_High_Projection_Percent__c

where Salary_High_Projection_Percent is the name of the field.

5. Click Save.

Configuring Salary Planning Core Data Fields: Salary


Core Data Fields: Salary

Salary - Current & History

Label Type Description

Amount Currency Salary amount in unit of given period

Annual Multiplier Number Number of times to multiply the amount to get the budgeted annual amount

Approved Date Date Date the salary change was approved

Award Date Date Date the employee was informed of salary change

Change Reason Picklist Reason for increase

Currency Lookup Currency for amount

Notes LongText Area

Period Picklist Period for amount: year, month, week, day, or hour

Start Date Date Date salary started

Configuring Salary Planning Core Data Fields: Benefits


Core Data Fields: Benefits

Benefits

Label Type Description

CO2 Number CO2 value for car

Code Text Provider code for this plan

Color Text Color of item

Coverage Description Text Brief description of coverage

Currency Lookup Currency for amounts

Deduction Code Picklist Deduction code for this benefit to be passed through to payroll

Deduction End Date Date Deduction end date if different from end date

Deduction Start Date Date Deduction start date if different from start date

Effective Date Date Benefit enrollment effective date at the time this benefit was selected

Employee Deduction Currency Amount deducted from employee salary each pay period

Employer Contribution Percentage

Percent Percentage of salary contributed by employer

Employer Cost Currency Cost to the employer per pay period

End Date Date End date of benefit

Engine Size Number Car engine size

First Registered Date Date Car registration date

Fuel Picklist Fuel type

Group Number Text Insurance/Pension plan number

Insurance End Date Date Date cover end if differs from end date

Insurance Start Date Date Date cover starts if differs from start date

Life Cover (Additional) Currency Amount of life insurance cover beyond the pre-approved level

Life Cover Currency Amount of life insurance cover

Make Text Make of car/phone etc

Maturity Date Date Share option date

Model Text Type of car/phone etc

Number Number Number of shares/items

PHI Benefit Checkbox If PHI benefit

Percent Contribution Percent Contribution of team member as percentage of salary

Plan Picklist Plan name

Policy Coverage Picklist Cover for insurance / savings plan

Policy Number Text Plan number

Configuring Salary Planning Core Data Fields: Benefits


Price Currency Price per share

Provider Picklist Plan provider / carrier

Reason Picklist Reason for this benefit starting or changing

Registration Number Text Car registration number

Serial Number Text Serial number of item

Start Date Date Start date of benefit

Type Text The type of benefit

Value Currency The value of benefit. Used to calculate total compensation package

Configuring Salary Planning Field Sets: Team Member subset


Field Sets: Team Member subset

Team Member Object (selected Field Sets)

Salary Planning Fields displayed in the Collaboration Portal Salary Plan page, Direct Reports section, for each team member. Displayed from the Team Members picklist: click Salary Plan.

Salary Planning Team Fields displayed on the team salary planing table.

Configuring Salary Planning Translation Workbench: Salary Planning


Translation Workbench: Salary Planning

Salary Object Use Setup > Administration Setup > Translation Workbench > Override to rename these custom fields

Default Field Label Field Label Override Field Type

Active Checkbox

Amount Currency (16,2)

Amount Above Band Reporting Formula (Currency)

Amount Below Band Reporting Formula (Currency)

Amount Reporting Currency (16,2)

Annual Amount Formula (Currency)

Annual Amount Reporting Formula (Currency)

Annual Multiplier Number (12,4)

Approved Date Date

Award Date Date

Change Reason Picklist

Currency Lookup (Exchange Rate)

Employment Master-Detail (Employment Record)

End Date Date

FTE Annual Amount Formula (Currency)

FTE Annual Amount Reporting Formula (Currency)

Increase Percent Formula (Percent)

Last Currency Recalculation Date/Time

Next Start Date Date

Notes Long Text Area (32000)

Period Picklist

Previous Salary Lookup (Salary)

Previous Start Date Formula (Date)

Salary Band Formula (Text)

Salary Band Bottom Formula (Currency)

Salary Band Comparison Amount Formula (Currency)

Salary Band Position Formula (Percent)

Salary Band Quarter Formula (Number)

Salary Band Top Formula (Currency)

Send Email Checkbox

Start Date Date



Salary Object Use Setup > Administration Setup > Translation Workbench > Override to rename these custom fields


Team Member Formula (Text)

Trigger Currency Recalculation Checkbox

Salary Band Object Use Setup > Administration Setup > Translation Workbench > Override to rename these custom fields


Base On Salary Amount Checkbox

Bottom Currency (16,2)

Bottom Reporting Formula (Currency)

Currency Lookup (Exchange Rate)

Family Text (255)

Middle Currency (16,2)

Middle Reporting Formula (Currency)

Quarter 1 Currency (16,2)

Quarter 1 Reporting Formula (Currency)

Quarter 3 Currency (16,2)

Quarter 3 Reporting Formula (Currency)

Top Currency (16,2)

Top Reporting Formula (Currency)

Salary Projection Object Use Setup > Administration Setup > Translation Workbench > Override to rename these custom fields


High Increase - Above Level 1 to High Increase - Above Level 8

Percent (3,4)

High Increase - Below Level 1 to High Increase - Below Level 8

Percent (3,4)

High Increase - Q1 Level 1 to High Increase - Q1 Level 8

Percent (3,4)


Percent (3,4)



Salary Projection Object Use Setup > Administration Setup > Translation Workbench > Override to rename these custom fields



Percent (3,4)


Percent (3,4)

Low Increase - Above Level 1 to Low Increase - Above Level 8

Percent (3,4)

Low Increase - Below Level 1 to Low Increase - Below Level 8

Percent (3,4)

Low Increase - Q1 Level 1 to Low Increase - Q1 Level 8

Percent (3,4)


Percent (3,4)


Percent (3,4)


Percent (3,4)

Configuring Salary Planning Action Email Events: HR Requests


Action Email Events: HR Requests

Event When sent

New When an HR Request is created by a Manager.

Draft When an HR Request is edited by a Manager.

Approve When an HR Request is approved by one of the designated approvers.

Reject When an HR Request is rejected by one of the designated approvers.

Finalize When an HR Request is finalized by HR.


IndexA Action Email Events

HR Requests • 25

C Configuring Salary Planning • 13 Configuring the Salary Pot Field • 16 Core Data Fields

Benefits • 19 Salary • 18

F Field Sets

Team Member subset • 21

P Policy Options

Salary Plan • 15 Process Diagram

Salary Planning • 14

R Related Guides • 7

S Salary Bands • 8 Salary Planning Process Overview • 4 Salary Planning Reports • 10 Salary Projections • 9

T Translation Workbench

Salary Planning • 22

supporting the salary planning process - fairsail online help the salary... · 2019-11-06 ·...

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