Compensation Workbench Presented by Ted Geary Natrona Technologies

Summary Compensation Workbench is used for: Annual Merit Reviews Bonus awards on a large scale (ICDs used for one or two employees) Allocation of Stock Options Promotion - job changes

Agenda Getting Started (Keys to success) Implementation and Setup Testing (What’s involved)

Getting Started Defining the business requirements (Required) PMI states 30 % of all projects are successful, on-time, and on-budget What happened to the other 70%?

Getting Started (cont.) What are some requirements you need to define? When do you do your annual reviews? Is there a need for prorating compensation for employees who have been hired less than a year? How is the process done now? Is there a freeze date? Who gets a bonus? who gets stock?

Getting Started (cont.) Cannot emphasize enough to define requirements Saves time and effort when the implementation and testing starts

Getting Started (cont.) If already implemented Standard Benefits or Advanced Benefits, it does make the concepts, implementation, and testing easier for the end user It is not essential but it helps the super user(s) involved in the project

Implementation Summary: Life Event Reasons Derived Factors Eligibility Profiles Plan Types Plans Plan Enrollment requirements Standard Rates

Implementation (cont.) Life Event Reasons The “Key” is to think about how you want your spreadsheet to look Defining how many needed Annual Review Bonus Stock Options

Implementation (cont.) What is a Derived Factor? The compensation to use as a base for Merit Increase, Bonus, or Lump Sum Merit Hourly Rate Annual Salary Prorated (Fast Formula) vs. Stated Salary

Derived Factor

Implementation (cont.) Eligibility Profiles Who gets What? Merit All Eligible Employees Bonus Management Stock Options Executive

Eligibility Profile

Implementation (cont.) Plan Types Stand Alone vs. Combination Plan

Implementation (cont.) Setting Up Plans Combination Options (Merit and Lump Sum Merit) Setup your plan years Determining Tasks –Set Budgets –Allocations –Promote/Change Jobs –Rate Performance –Manage Approvals, Review and Submit –Employee Statements (Need to configure)

Implementation (cont.) Plan Enrollment Requirements Life Event Plan Year Self-Service Display dates Freeze Date Approval Hierarchy Eligibility Profiles

Implementation (cont.) Approval Hierarchy Standard functionality uses Supervisor Hierarchy AME (Approvals Management), Position

Implementation (cont.) Standard Rates Budget Distribution Eligible Salary (Based on Derived Factor) Worksheet Allocation ( Attach Elements for stock, Lump Sum, and Bonus) Budget Reserve

Testing (Processing) Running the Participation Process -One employee vs. Concurrent Program Compensation Workbench Post Process Back-Out Compensation Life Events Process Compensation Workbench Refresh Process Compensation Workbench Close Enrollment Process

Testing Compensation Workbench Setting Budgets Allocations Assignment Changes (Promotions) Switch Manager Functionality Web ADI

Set Budgets

Allocation Worksheet

Switch Manager

Web ADI

Employee Statements

Points of Help Need plenty of time for testing because it can involve many people Personalizations will be necessary Testing

Implementation & Testing Time 6 weeks to 3 months Factors that determine ranges Complexity of the processes such as how bonuses are determined

Contact Information: Ted Geary