Using the Compensation Feature of Talent in ADP
Workforce Now
Part 2
W168_ILT_WFN91V02_0316 Copyright  2014–2016 ADP, LLC
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USING THE COMPENSATION FEATURE OF TALENT IN ADP WORKFORCE NOW PART 2
PREFACE
Contents
Course Introduction ....................................................................................................... 1
Welcome ................................................................................................................ 1
Norms ..................................................................................................................... 1
Course Purpose....................................................................................................... 1
Course Agenda ....................................................................................................... 1
Prerequisites and Advance Preparation .................................................................. 2
Implementation Questions...................................................................................... 2
Estimated Time ...................................................................................................... 2
Review: Using the Compensation Feature of Talent in
ADP Workforce Now Part 1 .................................................................................. 3
The ADP Workforce Now Compensation Process ................................................ 4
Setting Up Merit Events with Compa Ratio, Lump Sum Awards, and
Top-Down Budgeting .................................................................................................... 5
Overview ................................................................................................................ 5
What Is Compa Ratio? ........................................................................................... 5
What Are Lump Sum Awards? .............................................................................. 6
Guided Practice: Adding Compensation Types and Mapping Them to
Earnings Codes....................................................................................................... 7
Guided Practice: Setting Up Merit Events with Compa Ratio, Lump Sum
Awards, and Top-Down Budgeting—Step 1 ......................................................... 8
What Is a Top-Down Budget? ................................................................................ 9
Allocating a Top-Down Budget ........................................................................... 10
Guided Practice: Setting Up a Merit Event with Compa Ratio, Lump Sum
Awards, and Top-Down Budgeting—Step 2–3 ................................................... 12
Explore: Step 4: Review Managers ...................................................................... 14
Guided Practice: Setting Up a Merit Event with Compa Ratio, Lump Sum
Awards, and Top-Down Budgeting—Step 4 ....................................................... 15
Guided Practice: Setting Up a Merit Event with Compa Ratio, Lump Sum
Awards, and Top-Down Budgeting—Steps 5–7 .................................................. 16
Integrating ADP Workforce Now Performance with Compensation ................... 17
Explore: The Compensation Worksheet with ADP Workforce Now
Performance Integration ....................................................................................... 18
Making Award Recommendations for Merit Events Using Compa Ratio and
Lump Sum Awards ..................................................................................................... 20
Overview .............................................................................................................. 20
Explore: The Compensation Worksheet for Events Using Compa Ratio and
Lump Sum Awards............................................................................................... 20
Explore: The Award Calculator ........................................................................... 21
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PREFACE
What Are Red Circle and Green Circle Employees? ........................................... 22
What Is Peer Ratio? .............................................................................................. 24
Guided Practice: Making Award Recommendations for a Merit Event Using
Compa Ratio and Lump Sum Awards.................................................................. 26
Guided Practice: Making Next-Level Award Recommendations and
Approving Subordinate Worksheets .................................................................... 27
Demonstration: Processing Payroll for Events That Include Lump Sum
Awards ................................................................................................................. 28
Managing Conflicts ..................................................................................................... 29
Overview .............................................................................................................. 29
What Are Conflicts? ............................................................................................. 29
Resolving Conflicts to Proceed with the Event .................................................... 30
Setting Up Bonus Events ............................................................................................. 31
Overview .............................................................................................................. 31
What Are Bonus Events? ..................................................................................... 31
Guided Practice: Setting Up a Bonus Event—Steps 1–3 ..................................... 32
Demonstration: Using Filter Options to Select a Subset of Employees ............... 34
Guided Practice: Setting Up a Bonus Event—Steps 4–7 ..................................... 35
Demonstration: Closing a Bonus Event ............................................................... 36
Processing Lump Sum and Bonus Payouts .......................................................... 37
ADP Workforce Now Compensation Reporting ......................................................... 38
What Is Compensation Reporting? ...................................................................... 38
Explore: Compensation-Related Information in Custom Reports........................ 40
Knowledge Check ................................................................................................ 41
Course Closing ............................................................................................................ 42
Summary .............................................................................................................. 42
Course Objectives ................................................................................................ 42
Demonstration: How to Access Support .............................................................. 42
Next Steps ............................................................................................................ 43
Implementation Survey ........................................................................................ 43
www.adp.com/mobilesolutions/ ........................................................................... 43
Help with Course Enrollments ............................................................................. 43
Thank You! .......................................................................................................... 44
What Questions Do You Have? ........................................................................... 44
Training Evaluation .............................................................................................. 44
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PREFACE
Estimated Time
Topic
Duration
Course Introduction
15 minutes
Setting Up Merit Events with Compa Ratio Lump
Sum Awards, Top-Down Budgeting
45 minutes
Making Award Recommendations for Merit Events
Using Compa Ratio and Lump Sum Awards
20 minutes
Managing Conflicts
10 minutes
Setting Up Bonus Events
15 minutes
ADP Workforce Now Compensation Reporting
10 minutes
Course Closing
5 minutes
Total
2 hours
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Using the Compensation Feature of Talent in
ADP Workforce Now
Part 2
PART 2
HANDOUT MANUAL
USING THE COMPENSATION FEATURE OF TALENT IN ADP WORKFORCE NOW
Course Introduction
Course Purpose
This course prepares you to use the Compensation feature of Talent in ADP Workforce Now for
more complex merit and bonus events. Topics include setting up merit compensation events
using a top-down budget and compa ratio, allowing lump sum awards, and integrating ADP
Workforce Now Performance; setting up bonus compensation events; making award
recommendations for compensation events; and reporting on compensation.
Course Agenda
 Setting Up Merit Events with Compa Ratio, Lump Sum Awards, and Top-Down
Budgeting
 Making Award Recommendations for Merit Events Using Compa Ratio and Lump Sum
Awards
 Managing Conflicts
 Setting Up Bonus Events
 ADP Workforce Now Compensation Reporting
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Implementation Questions
List any follow-up items that you may need to discuss with your implementation consultant (IC)
or implementation specialist (IS):
 ______________________________________________________
 ______________________________________________________
 ______________________________________________________
 ______________________________________________________
 ______________________________________________________
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Review: Using the Compensation Feature of Talent in ADP
Workforce Now Part 1
Instructions
In the left column, write any concepts or topics that you remember from Using the
Compensation Feature of Talent in ADP Workforce Now Part 1. In the right column, explain
those concepts or topics.
Concept/Topic
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Description
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The ADP Workforce Now Compensation Process
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Setting Up Merit Events with Compa Ratio, Lump Sum
Awards, and Top-Down Budgeting
Overview
You can select various attributes to define an event and provide award guidelines for your
managers to use when making award recommendations.
In this topic, you will set up an event that uses the following:
 Compa ratio to establish guidelines for awarding compensation
 Lump sum awards to award those employees who might not otherwise receive a
compensation award due to their compa ratio
 A top-down budget to allocate the budget for the event
What Is Compa Ratio?
Compa ratio is a formula commonly used to assess the competitiveness of an employee’s pay
level. Compa ratio is the short form for comparative ratio.
The compa ratio is the average of the employee's actual pay divided by the pay range midpoint
within the job grade.
Example
Edward Bonner, a Production Staff, is paid a salary of $56,243.20 CAD. The midpoint of the
salary range for his pay grade is $50,571.00. His compa ratio is 1.11, meaning that he is paid
13% over the midpoint for his pay grade.
Important Information
You must have pay grades and salary structures set up in your application in order to set up
events that include compa ratio as a guideline for managers to use when making award
recommendations.
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What Are Lump Sum Awards?
Lump sum awards are one-time awards. The award does not affect an employee’s salary in the
way that a merit increase affects base pay.
Lump sum awards are only allowed for certain employees who are not eligible for merit
increases yet their performance warrants an award.
Example
Go Green does not permit salary increases that result in a salary that is greater than the
maximum for the pay grade. For cases in which an employee’s performance deserves an award
and the employee’s salary is greater than the maximum for the pay grade, Go Green allows for
lump sum awards.
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 an award,
even though Donald's salary is over his pay grade.
When Anthony enters this award in the Compensation worksheet, the dollar amount of the
award is displayed in the Lump Sum column and will be paid as such.
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Activity: Adding Compensation Types and Mapping Them to
Earnings Codes
Overview
ADP Workforce Now provides two compensation types: base pay and lump sum. If you want
to use other compensation types, you can add them to the application. Lump sum, along with
any compensation types you may add, must be mapped to earnings codes in ADP Workforce
Now in order for those types of compensation to be processed correctly in ADP Workforce Now
Payroll.
Scenario
You are preparing to set up two events: a merit event allowing lump sum awards and a quarterly
bonus event. In order for the compensation associated with these events to process correctly,
you need to add the bonus compensation type and then map the lump sum and bonus
compensation types to the appropriate earnings codes.
Instructions, Part 1: Add a Compensation Type
Starting Point: Setup > HR & Talent > Compensation Types
Step
Action
1
Click
ADD.
2
Complete the Add Compensation Type page as follows:
 In the Name field, enter Bonus.
 In the Status field, keep the default selection.
 Click Done.
Instructions, Part 2: Map Compensation Types to Earnings Codes
Starting Point: Setup > HR & Talent > Compensation Types
Step
Action
1
In the row for the Lump Sum compensation type, click
Code.
(action) and select Map Earnings
2
In the Earnings Code field for each company code, select 27 – Adjustment.
3
Click Done.
4
In the row for the Bonus compensation type, click
5
In the Earnings Code field for each company code, select 26 – Bonus.
6
Click Done.
(action) and select Map Earnings Code.
Important Information
You have to map compensation types to earnings codes for each company code.
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Activity: Setting Up Merit Events with Compa Ratio, Lump Sum
Awards, and Top-Down Budgeting—Step 1
Scenario
You are the practitioner for Go Green and are ready to set up the annual merit event.
Go Green uses compa ratio to provide managers with guidelines for making award
recommendations and allows managers to provide lump sum awards to those who are not
eligible for merit increases but whose performance warrants recognition.
Go Green prorates awards based on employees’ hire dates.
Review Period: ___________________________________________
Recommendation Period: ___________________________________
Cut-Off Date: ______________________________________________
Effective Date: ____________________________________________
Instructions
Starting Point: __________________________________________________________
Step
1
Action
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.
 Clear 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 Save and Exit.
Important Information
 If your company requires events to be approved before processing the associated
payroll, be sure to set up the approval workflow before setting up the event.
 You must have pay grades and salary structures set up in your application in order to set
up events that include compa ratio as a guideline for managers to use when making
award recommendations.
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What Is a Top-Down Budget?
When a company uses a top-down budget approach, a company officer defines the budget and
allocates dollars throughout the organization.
Example
Go Green uses a top-down budget approach for their annual merit event, based on an estimate of
3% of all employees’ salaries. The CEO defined a budget of $20,000, which the practitioner will
proportionately allocate to each of the managers included in the event.
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Allocating a Top-Down Budget
Description
Allocation of a top-down budget begins with the company officer providing a budget for the
event to the practitioner.
The practitioner begins proportionately allocating the budget, first distributing it across the top
management tier of the organization. From there, the top-tier managers proportionately allocate
their budget to the next level of managers subordinate to them, reserving a sufficient amount to
make award recommendations to their own direct reports.
This allocation of money from each management level down through the organization continues
until the first-level managers making award recommendations receive a budget amount needed
to make award recommendations to their direct reports.
Sample Top-Down Budget
This graphic illustrates the distribution of a budget allocated from the vice president down to the
first-level managers making award recommendations. Each allocation is sufficient for the
managers to make award recommendations for their direct reports and the managers below them
to make award recommendations for their own direct reports.
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Sample Top-Down Budget Including Funds Reserved for Direct
Reports
This graphic illustrates the amounts reserved for direct reports at each level of the top-down
budget before allocating funds to the subordinate level.
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Activity: Setting Up a Merit Event with Compa Ratio, Lump Sum
Awards, and Top-Down Budgeting—Steps 2–3
Scenario
Go Green plans to use a top-down budget approach. After selecting employees for the event,
you will exclude some of them because they will be part of a different event.
Instructions
Step
1
Action
Complete Step 2: Budget Settings as follows:
 Select Top-Down Budgeting.
Result: A Confirm Action window opens. Click Yes to proceed.
 Click Next.
2
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.
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Activity: Setting Up a Merit Event with Compa Ratio, Lump Sum
Awards, and Top-Down Budgeting—Steps 2–3 (continued)
Instructions (continued)
Step
3
Action
Select the check box for the following employees:
 Barry, John
 Dexter, John
 Fitzgerald, Gail
 Fourmier, Patrick
 Intermont, Lorraine
 Intes, Marie
 Kennedy, Marchall
 Lovejoy, John
4
Click Delete Employees.
5
Click Save and Exit.
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Explore: Step 4: Review Managers
Most Senior Managers in the Event View
All Managers View
Views and Descriptions
View
Description
Most Senior Managers in the Event
All Managers
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Activity: Setting Up a Merit Event with Compa Ratio, Lump Sum
Awards, and Top-Down Budgeting—Step 4
Scenario
Before calculating and allocating the budget, you need to exclude Christopher Flannigan and
Samuel Barbato from this event because they will not be making award recommendations.
Calculate the event budget based on a target award of $2,000 per employee, knowing some
managers may award more than that and some may award less. Allocate the budget to the
remaining managers who will be making award recommendations.
Note: Your company may choose to keep managers who are not making award
recommendations associated with an event for approval workflow. In this example, exclude
them to maximize time by eliminating unnecessary tasks.
Manager
Allocated to Manager
Distributed to Subordinate Manager
Christopher Flannigan
Samuel Barbato
Instructions
Step
1
Action
In the Review Level section, click All Managers.
Result: All managers included in the event are displayed.
2
To Exclude Christopher Flannigan and Samuel Barbato from this event:
 Select checkbox beside Christopher Flannigan and Samuel Barbato. Click Exclude.
Result: A red X is displayed next to each of the managers’ names.
3
In the Event Budget Details section, in the Allocated for This Event field, enter the amount
budgeted for this event and then press Tab.
4
In the Budget field for Susan Dearborne, enter the amount budgeted for her and then press
Tab.
In the Budget field for Anthony Albright, enter the amount budgeted for him and then press
Tab.
In the Budget field for David Cormier, enter the amount budgeted for him and then press Tab.
In the Budget field for Donald East, enter the amount budgeted for him and then press Tab.
5
Click Next.
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Activity: Setting Up a Merit Event with Compa Ratio, Lump Sum
Awards, and Top-Down Budgeting—Steps 5–7
Scenario
Your company has defined two compa ratio segments: 0 to .75, .76 and up.
Because your company uses ADP Workforce Now Performance, you will associate the event
with the Introductory Review performance policy.
Instructions
Step
1
Action
Complete Step 5: Guideline Settings as follows:
 Select Use a Performance Plan to define award guidelines and then select Introductory
Review.
 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.
2
Complete Step 6: Guidelines as indicated in the following graphic:
3
Complete Step 7: Summary as follows:
 Review your entries.
 Click Done.
Result: The Confirm Action window opens.
 Click Yes.
Important Information
Your company may choose to not award employees who are not meeting organizational
objectives. If so, during event setup, on the Step 6: Guidelines page of the Compensation Event
wizard, you must enter zeroes for the performance rating of Does Not Meet Expectations.
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Integrating ADP Workforce Now Performance with Compensation
Guidelines
For information to flow from ADP Workforce Now Performance to Compensation, you must do
the following:
 Set up performance policies in the application prior to setting up an event.
 Ensure that 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.
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Explore: The Compensation Worksheet with ADP Workforce Now
Performance Integration
Elements and Descriptions
Element
Description
Performance
Rating field
When you use ADP Workforce Now Performance and you associate a
performance review with a compensation event, each employee’s Performance
Rating field on the Compensation worksheet populates with the rating that you
gave the employee when conducting the performance review.
Score column
If your company associates a score with an overall performance rating, the score
is displayed in the Score column for each employee.
Performance
Reviews tab
Lists the performance review actions for the selected employee.
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Important Information
Ratings entered in the Compensation worksheet take precedence over those entered in ADP
Workforce
If the Performance Policy Associated
with the Compensation Event
Then
Does not require employees to
acknowledge the review
The performance rating integrates with Compensation when
the manager completes the review, provided that the
manager did not select a rating for the employee using the
Compensation worksheet.
Requires employees to acknowledge the
review
 The Performance Rating column on the Compensation
worksheet is displayed as editable. If the employee
acknowledges the rating after the event is rolled out, that
rating is integrated with Compensation and is displayed on
the Compensation worksheet after the acknowledgement.
 The acknowledgement can happen beyond the cut-off
date, and Compensation will integrate the new information
into the Compensation worksheet, provided that the
manager did not select a rating using the worksheet.
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Making Award Recommendations for Merit Events Using
Compa Ratio and Lump Sum Awards
Overview
When you set up a merit compensation event using compa ratio and allowing lump sum awards,
it affects the Compensation worksheet. Managers are provided with additional information and
fields to use when awarding compensation.
Explore: The Compensation Worksheet for Events Using Compa
Ratio and Lump Sum Awards
Elements and Descriptions
Element
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Description
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Explore: The Award Calculator
The Award Calculator section of the Compensation worksheet provides managers with a
graphical view of the guidelines for making award recommendations that were established
during event setup.
Elements and Descriptions
Element
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Description
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What Are Red Circle and Green Circle Employees?
Overview
ADP Workforce Now uses employee pay-grade information to identify employees’ salaries
relative to their pay grades.
Your company may instruct managers to consider the identification of red circle and green
circle employees when awarding compensation.
Types and Descriptions
Type
Description
Red circle employees
Green circle employees
Example: Red Circle Employees
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Example: Green Circle Employees
Tip
Notice that the red circle icon is filled in on the top half, indicating that an employee is being
paid above the pay grade range. The green circle icon is filled on the bottom half, indicating that
an employee is being paid below the pay grade range.
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What Is Peer Ratio?
Peer ratio is a metric that helps managers understand how an employee is paid relative to his or
her peers. Peer ratio is calculated by dividing an employee’s annual salary by the employee’s
peers’ average annual salaries, then multiplying by 100. As the employee’s salary exceeds that
of his peers, the ratio increases.
Defining Peers
You can define peers on the Setup > Tools > System Options > General Settings page in ADP
Workforce Now. You can use one or any combination of three elements—job title, pay grade, or
location—to define peers. Once defined, the peer definition applies to all companies in your
organization.
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Example
Roberta Carney is an accountant working in Toronto. Roberta’s company defines peers using
job title and location. Roberta’s peer ratio is .52, meaning she is paid approximately half of the
average salaries of her peers.
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Activity: Making Award Recommendations for a Merit Event Using
Compa Ratio and Lump Sum Awards
Scenario
Anthony Albright received notice that a merit event is rolled out and that he can make award
recommendations on the Compensation worksheet. Anthony gives Donald a performance rating
of Exceeds Expectations because he increased efficiencies over and above expectations for his
department. As a result, Anthony awards him a 2% merit increase. Anthony would like to add a
comment to communicate his rationale to the practitioner for consideration when finalizing
recommendations.
Employee
Performance Rating
% Award
Donald East
Exceeds Expectations
2
Fernand Dainton
Perform as Expected
1.0
Flannigan
Christopher
Perform as Expected
1.0
Carlo Garland
Perform as Expected
1.0
Comment
Donald exceeded expectations, and I
am recommending the maximum
increase of 2%.
Instructions
Step
Action
1
Emulate Anthony.
2
Enter the performance ratings and award recommendations.
3
In the Comments section for Donald East, click
4
Enter the comment and then click Done.
5
After you have entered all ratings and recommendations, submit Anthony's worksheet.
.
Important Information
If someone other than an employee’s manager makes changes to the employee’s award
recommendation, a comment is logged in the Comments section, indicating who made the
change. This provides an audit trail of changes to the employee’s award recommendations.
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Activity: Making Next-Level Award Recommendations and
Approving Subordinate Worksheets
Scenario
Anthony Albright completed his recommendations and submitted his Compensation worksheet.
Now, Susan Dearborne has to submit her recommendations and approve the worksheets so that
you, as the practitioner, can make the final recommendations.
Susan Dearborne's Recommendations
Employee
Performance Rating
% Award
Cramer, Neal
Performs as Expected
1.0
Jones, Elizabeth
Performs as Expected
1.0
Instructions
Step
1
Action
Emulate Susan Dearborne to review, make, and submit all recommendations.
Result: The Reject Worksheet button is displayed. Susan can reject her or Anthony's
worksheet, if necessary.
2
In the Select Worksheet field, select Go Green Annual Merit.
3
Change the view to All Eligible Employees.
4
Finalize the recommendations. Click Finalize Recommendations button.
5
Process the payroll to close the event.
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Processing Payroll for Merit Events That Include Lump Sum Awards
Job Aid
Overview
When events include lump sum awards, you have an additional step to complete in order to
process those awards in ADP Workforce Now Payroll.
You need to access the Compensation Management – Close Event page, Payout Schedules
Mapping tab to apply recommendations.
Scenario
You need to process the paydata batch for the lump sum awards that are included in the event.
Instructions
Starting Point: Process > Talent > Compensation Dashboard
Step
Action
1
In the row for the event, click
(action) and select Process Payroll and Close Event.
2
On the Compensation Management – Close Event page, click the Payout Schedules
Mapping tab.
3
Select the appropriate company code.
4
Click Apply Recommendations.
Result: A Confirm Action window opens. Click Yes to proceed. You will come back to the
Compensation Dashboard page which displays all the events. The Status for your event will
change to Ready for Payroll Processing.
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Managing Conflicts
Overview
When you finalize recommendations at the end of a compensation event, the application may
identify conflicts.
What Are Conflicts?
Conflicts occur when the event details or compensation changes that you are trying to process
for the event conflict with some other activity in the application that occurred after the cut-off
date but during the recommendation period.
Conflict Types, Descriptions, and Resolutions
Conflict Type
External salary change
Description
The employee’s annual salary has
changed outside of the
compensation event.
Resolution
You can 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.
Non-active employee
The employee’s status is no longer
active.
You can either continue with the
recommended award or suspend it.
Pending salary change
The employee has one or more
pending salary changes that can
affect the award.
You can either continue with the
recommended award or suspend it.
You can review or delete the pending
salary changes on the employee's Pay
Rates page.
Currency conflict
The employee’s currency has
changed. In this event, only the
event-designated currency can be
supported.
You can either change the employee’s
currency to the event currency or
suspend the recommendation. You
can change the currency on the
employee’s Pay Rates page.
Hire/rehire date
The hire or rehire date changed
and will affect the prorated value
and the amount of the award.
You can either continue with the
recalculated award or suspend it. You
can review or change the employee’s
hire/rehire date on the employee’s Job
Profiles page.
Example
When finalizing recommendations, the Manage Conflicts page displays a list of employees with
conflicts who are included in the event. The practitioner resolved the conflicts and finalized the
recommendations.
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Resolving Conflicts to Proceed with the Event
Guidelines
You need to take an action for each conflict in order to move the event forward. You can do one
of the following for each conflict:
 Accept the new award and reject the original award.
 Accept the original award and reject the new award.
 Suspend the recommendation.
After taking action on each conflict, click Finalize Recommendations to complete this part of
the process.
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Setting Up Bonus Events
Overview
You can set up bonus compensation events using the Compensation Event wizard, similarly to
how you set up merit events. Before getting started, you need to make sure that the bonus
compensation type is mapped to the appropriate earnings code for your company.
Like merit events, bonus events have an associated timeline. However, it is not as important that
the effective date align with the first day of a payroll period because bonus payouts require their
own paydata batch.
What Are Bonus Events?
Bonus events consist of a single payment made to eligible employees based on established
criteria. Frequently, payments are part of ongoing incentive programs that reward employees on
a periodic basis.
Example
Your company’s compensation structure for sales employees provides them with opportunities
to earn quarterly bonuses based on how many units of product they sell.
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Activity: Setting Up a Bonus Event, Steps 1–3
Scenario
Your company issues quarterly bonuses with a target of 5% to its sales force based on
achievement of predefined goals. Several sales executives are receiving a target bonus of 7%.
You need to select those executives from the employees included in the event in order to assign
the increased award percentage.
The review period for this event is the fourth quarter of the calendar year, October 1 through
December 31. The recommendation period begins on January 10 and goes through January 24.
The cut-off date is the same as the recommendation period start date. The effective date for the
payout is February 10.
Instructions, Steps 1–2: Set Event Details and Budget
Starting Point: Process > Talent > Compensation Dashboard
Step
1
Action
Click
.
Results: The Compensation Event wizard launches.
2
Complete Step 1: Event Details as follows:
 In the Event Name field, enter Go Green 4th Qtr 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/Rehire Date.
 Accept the default selection of Require This Event to Be Approved before Payroll
Processing.
 In the Review Period Start Date field, enter 10/1/XX, where XX represents the prior year.
 In the Review Period End Date field, enter 12/31/XX, where XX represents the prior year.
 In the Recommendation Period Start Date field, enter 1/10/XX, where XX represents the
current year.
 In the Recommendation Period End Date field, enter 1/24/XX, where XX represents the
current year.
 In the Effective Date field, enter 2/10/XX, where XX represents the current year.
 Click Next.
3
Complete Step 2: Budget Settings as follows:
 Accept the default selection of Bottom Up Budgeting and Estimate the Budget Based on
the Target Bonus.
 Click Next.
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Instructions, Step 3: Select Employees
Step
1
Action
Complete Step 3: Select Employees as follows:
 Click Add Employees.
 Accept the default selection of Build Employee List or Select Saved List and then click
Continue.
 Complete the Advanced Rule Builder as follows:
 Click OK.
2
Select the check box for the following sales directors:
 Ethan, Galant
 Tyffany, Martinez
3
Click Mass Assign Target Bonus.
4
In the Budget Estimate % field, enter 5.
5
Click Apply.
Result: The list of employees displays the appropriate target amounts.
Important Information
 When setting up an event with a bottom-up budget estimate, you will see a similar link,
but it is called Mass Assign Budget Estimate. It works the same way that the Mass
Assign Target Bonus link works.
 When you enter a different target bonus for one or more employees included in the
event, the budget estimate increases by that amount. However, when you access the
worksheet to award compensation, you will not see the different estimate for those
employees you identified during plan setup. The employees’ managers enter the bonus
for those employees in the worksheet at the time they award compensation.
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Using Filter Options to Select a Subset of Employees Job Aid
Overview
The Filter Options feature is available in Compensation Event wizard Step 3: Select
Employees to provide you with a way to create a subset of the employees selected for the event.
You can use Filter Options to do any of the following:
 View specific groups of employees to make sure that they are included in the event.
 Mass assign a target bonus or budget estimate to a specific subset of the selected
employees.
 Delete the subset of employees.
Scenario
You want to mass assign a different target bonus to the director of sales in the event. To easily
find these employees, you will filter by the job title field for director of sales.
Instructions
Step
Action
1
On Step 3: Select Employees, you have already selected the employees to be included in the
event.
2
Click
3
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
4
Click Filter.
on the right side of the Filter Options feature.
Result: The subset of employees replaces the full list of employees selected for the event.
5
Make the necessary changes for these employees.
6
In the Filter Options section, click Reset to display the full list of employees selected for the
event.
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Activity: Setting Up a Bonus Event, Steps 4–7
Scenario
You need to associate the bonus event with the Quarterly Bonus Review performance policy
and define the target guidelines for the performance ratings as detailed in the following table.
Performance Rating
Exceeds Expectations
Meets Expectations
Does Not Meet Expectations
Guideline
Amount
Target
100%
Recommended
90%–105%
Allowed
0%–110%
Target
85%
Recommended
75%–100%
Allowed
0%–105%
Target
0%
Recommended
0%–0%
Allowed
0%–0%
Instructions
Step
1
Action
Complete Step 4: Review Managers as follows:
 Accept the budget defaults for the managers in the event.
 Click Next.
2
Complete Step 5: Guideline Settings as follows:
 Select Use a Performance Plan to define award guidelines.
 Select Quarterly Bonus Review.
Note: If you do not have a Performance Policy setup for Quarterly Bonus Review, then you
need to create one prior to completing this step. To setup a performance policy, go to Setup >
HR & Talent > Performance Reviews. You may also be required to setup appropriate rating
scale.
 In the Define Guidelines as field, keep the default selection as Percentage.
 Click Next.
3
Complete Step 6: Guidelines as follows:
 Select Auto-Populate Target Awards for All Employees in the Worksheet.
 Enter information provided in the scenario.
 Click Next.
4
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.
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Closing a Bonus Event Job Aid
Overview
As you do with merit events, you can close bonus events after the approving authority approves
the event.
To close the bonus event, you do the following:
 Create a paydata batch for all company codes to which the employees in the event
belong.
 Update compensation notice settings.
Once you finalize the managers’ recommendations and the approving authority approves the
event, the event status on the Compensation Dashboard will change to Ready for Payroll
Processing. Now, you can close the bonus event.
Scenario
All of the Compensation worksheets for the bonus event have been submitted, you finalized the
recommendations, and the CEO approved the payout for the event. Now, you are ready to
process the paydata batch for the bonus event.
Instructions
Starting Point: Process > Talent > Compensation Dashboard
Step
1
Action
In the row for the event, click
(action) and select Process Payroll and Close Event.
Result: The Compensation – Close Event page is displayed.
2
On the Payout Schedules Mapping tab, select the company codes for which you are processing
the bonus payouts. Click Apply Recommendations.
Note: If any company code doesn’t have a pay period schedule with the pay date associated
with the compensation event date, then you will need to open a pay period schedule prior to
applying the recommendations.
3
Click Create Paydata Batch.
Result: The batch is processed.
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Processing Lump Sum and Bonus Payouts
Guidelines
 You will not be able to create a paydata batch unless compensation types are mapped to
earnings codes.
 You cannot create the paydata batch until the pay period in which the compensation
effective date falls.
 To verify updated pay rates, navigate to an employee’s Pay Rates page and, for
future-dated records, click Other Records.
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ADP Workforce Now Compensation Reporting
What Is Compensation Reporting?
You can export budget information during event setup, and you and managers can export
worksheet details after an event is rolled out. In addition, you can use Custom Reports to create
your own compensation reports by including compensation-related fields in the report.
Compensation Reports and Descriptions
The following reports are available in ADP Workforce Now Compensation.
Compensation
Report
Manager and
Budget Details
Description
 Only practitioners can generate this report while setting up the event.
 Practitioners can generate this report by taking the following action:
 Completing Step 4: Review Managers in the Compensation Event wizard
 Clicking the Export to Excel link
Worksheet Detail
 Practitioners and managers can export worksheet details after an event is rolled
out.
 Practitioners and managers can generate this report by taking the following
action:
 Navigating to the Compensation Dashboard
 Clicking
(action) and selecting Export Worksheet
Example
The practitioner for Go Green prefers to have a hard copy of the budget information for
reference. After the practitioner reviews the managers and allocated budget while setting up the
event, he exports the information to a Microsoft Excel worksheet.
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Report Output
Manager and Budget Details report
Worksheet Details report
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Explore: Compensation-Related Information in Custom Reports
You can include compensation-related fields when you create reports in ADP Workforce Now
Custom Reports. The following graphic shows the compensation-related files in Step 2: Select
Fields of the Report wizard. (Starting Point: Reports > Custom Reports > Set Up New)
Files and Descriptions
The following files contain the compensation-related fields in the Report wizard in Custom
Reports.
File
Description
Compensation Events
Contains fields that relate to your active and historical compensation
events. A compensation event is comprised of the setup information for
processing a merit increase or a bonus for employees, employees who will
be awarded, and the managers who will participate in the process.
Compensation Types
Contains fields that relate to the compensation types, which are the pay
elements used to process compensation awards to employees. This file
also contains fields that relate to company codes and earnings code
mapping for nonstandard compensation types, such as bonuses.
Compensation Worksheet
Contains fields that relate to processing a compensation award for an
event and the employees involved in the event.
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Knowledge Check
1. Which of the following must you do in order for bonus payments to be processed
correctly? (Select all that apply.)
a. Add the bonus compensation type.
b. Add the lump sum compensation type.
c. Map the compensation type to the appropriate earnings code.
d. Add the event to your payroll grid.
2. Practitioners generally complete all of the following stages in the ADP Workforce Now
Compensation process except:
a. Set up and roll out the compensation event.
b. Make award recommendations.
c. Review worksheets and submit them for final approval.
d. Update pay rates.
3. Which of the following are true of allocating a top-down budget? (Select all that apply.)
a. The system generates an estimate based on a target percentage that you enter when
setting up the event.
b. The system allocates the budget proportionately based on the managers’ number of
direct reports.
c. As practitioner, you enter budget allocations across the organization to the highest-level
managers first.
d. When allocating their budgets, managers need to ensure that they have sufficient funds
to make award recommendations to their direct reports, as well as to their direct reports’
direct reports.
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Course Closing
How to Access Support Job Aid
ADP provides various resources to help you perform your tasks after class.
Instructions
Step
Action
1
In the upper-right corner of any page, click
(support).
2
In the Search field, enter a topic and then click
(search).
Result: The available online Help and training are displayed.
3
4
Review the available resources.
IF You Want To
Then
Read online Help
Click the Documentation tab and select a topic.
To close the Support window, click Back.
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Next Steps
What else will you do in the next week to apply this training?
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Training Evaluation
Please take a moment to complete the evaluation.
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