Fixed compensation plans (form)
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
Click Human resources > Periodic > Compensation > Fixed compensation plans.
Use this form to create fixed compensation plans of the Grade, Band, and Step types.
When you set up a compensation plan, you create a compensation matrix that is composed of a set of ranges and a set of levels, and then you add the appropriate pay rates to create a compensation structure.
You associate a compensation plan with a worker in the Employee fixed compensation form.
Workers are limited to a set of plans through eligibility rules, which are typically derived from criteria associated with a worker's position and job.
Example
In a Band type compensation plan, the compensation structure might look like the information displayed in the following table.
Levels: |
Range 1 |
Range 2 |
Range 3 |
---|---|---|---|
Minimum pay range |
Medium pay range |
Maximum pay range |
|
Level 1 |
200,000.00 |
275,000.00 |
350,000.00 |
Level 2 |
125,000.00 |
175,000.00 |
225,000.00 |
Level 3 |
72,500.00 |
107,500.00 |
142,500.00 |
Level 4 |
27,500.00 |
57,500.00 |
87,500.00 |
Task that uses this form
Navigating the form
The following tables provide descriptions for the controls in this form.
Tabs
Tab |
Description |
---|---|
General |
Modify or view details about a compensation plan. |
Range utilization matrix |
Create or view the steps in a range utilization matrix. The steps in the matrix impact the amount of a pay increase, depending on where workers’ fixed pay is within their compensation ranges. This matrix is used as an option when calculating increases during a process event. |
Buttons
Button |
Description |
---|---|
Set up compensation |
Open the Set up compensation form, where you can set up the compensation grid for the selected fixed compensation plan. Note If you are creating a new record, you must save the record before this button is available. If you have already set up a compensation grid for the selected fixed compensation plan, this button is not available. |
Compensation grid |
View or maintain the compensation structure or pay rate ranges for a fixed compensation plan. Note This button is available after you set up a compensation grid for the fixed compensation plan. |
Fields
Field |
Description |
---|---|
Plan |
Enter a unique name for a fixed compensation plan. |
Effective date |
Enter the earliest date and time when the compensation plan is effective. |
Expiration date |
Enter the date and time when the compensation plan is no longer effective. |
Type |
Select a plan type. The plan type determines how to calculate pay that is relative to the compensation structure.
|
Market price indicator |
Select this check box to use the market price ranges entered for each individual job, in addition to the broad compensation ranges entered for this compensation plan. This option is available only for Band type plans. |
Enable recommendation |
Select this check box to allow overrides of the calculated guideline results of the automatic event process. If you allow process overrides, you will allow pay recommendations outside of the guideline amounts, based on a manager’s input. |
Out of range tolerance |
Select a tolerance to determine how to calculate pay rate changes for workers associated with the selected plan.
|
Hire rule |
Select the basis of the merit increase.
|
Currency |
Select a currency for the plan. |
Pay frequency |
Select the pay frequency for the fixed compensation plan. |
Compensation structure |
The compensation structure that applies to the plan. The compensation structure is based on the reference point setup and the levels that you select for the plan. |
Control point |
Select a reference point as a control point. You must set up a compensation structure for the fixed compensation plan before this field becomes available. The control point indicates the target pay rate for a job covered by the current plan. Note The range "midpoint" is most frequently used, but any reference point is allowed. |
Utilization percent |
Enter the level of the range utilization. The lower a worker is in their range, the larger the resulting pay increase; the higher they are in their range, the lower the resulting pay increase. You can select a different level each time you run a compensation process event for workers to move them toward the middle of their range. |
Increase modifier percent |
A factor applied to a budgeted increase amount, as modified by performance and other criteria during a process event, to move employees toward the middle of their range over time. |
See also
Fixed compensation actions (form)
Employee fixed compensation (form)
Variable compensation plans (form)
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