1. Welcome to Using the Compensation Feature of Talent in ADP Workforce Now Technical Assistance  If you encounter problems during this Live Meeting, call Microsoft ® Office Live Meeting support at 1-866-493-2825.  If you are unable to join the audio conference, call Level 3 Communications Ready-Access ® audio conferencing at 1-800-788-6092.  To minimize background noise, use your phone’s mute function or press *6 to mute the line and *7 to unmute the line.  State your name before speaking.  Do not place your phone on hold. Part 2 For audio, call 1-800-377-0237. Access code:

2. Part 2 W168_ILT_WFN91V01_1015 Using the Compensation Feature of Talent in ADP Workforce Now

3. 3 Copyright © 2014–2015 ADP, LLC Norms  Minimize distractions.  Return promptly from breaks.  Participate. Ask any question that comes to mind.  Make mistakes. This is a safe environment.  Put your phone on mute during the presentation. – Press *6 to mute. – Press *7 to unmute.  Do not place your phone on hold.

4. 4 Copyright © 2014–2015 ADP, LLC 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.

5. 5 Copyright © 2014–2015 ADP, LLC 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

6. 6 Copyright © 2014–2015 ADP, LLC Prerequisites and Advance Preparation Using the Compensation Feature of Talent in ADP Workforce Now Part 1

7. 7 Copyright © 2014–2015 ADP, LLC Review: Using the Compensation Feature of Talent in ADP Workforce Now Part 1 Concept/TopicDescription

8. 8 Copyright © 2014–2015 ADP, LLC The ADP Workforce Now Compensation Process Approving Authority Practitioner Manager’s Manager Stage 1: Set Up and Roll Out Compensation Event Stage 4: Review Worksheets, Resolve Conflicts, and Submit Worksheets for Approval Stage 6: Close Compensation Event (includes Payroll Processing and Distributing Compensation Notices) Stage 5: Approve Compensation Event for Payout Stage 3: Make Award Recommendations and Approve/Reject Subordinate Worksheets (Optional) Stage 2: Make Award Recommendations and Submit Worksheets

9. 9 Copyright © 2014–2015 ADP, LLC Setting Up Merit Events with Compa Ratio, Lump Sum Awards, and Top-Down Budgeting Overview  Set up events with various attributes to provide guidelines for managers when making award recommendations.  Set up a merit event that uses the following: –Compa ratio as a guideline when awarding compensation –Lump sum awards for employees who are not eligible for merit increases –A top-down budget

10. 10 Copyright © 2014–2015 ADP, LLC 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.

11. 11 Copyright © 2014–2015 ADP, LLC Example: Edward Bonner Compa ratio =Employee’s salary Pay grade midpoint 1.11 =56243.20 50571.00

12. 12 Copyright © 2014–2015 ADP, LLC Example: Albert Delaney Compa ratio =Employee’s salary Pay grade midpoint 1.06 =53,560.00 50,571.00

13. 13 Copyright © 2014–2015 ADP, LLC What Are Lump Sum Awards?  One-time awards that are given when merit increases are not permitted but performance warrants an award  Do not impact an employee’s salary

14. 14 Copyright © 2014–2015 ADP, LLC Example

15. Guided Practice: Adding Compensation Types and Mapping Them to Earnings Codes 15 Copyright © 2014–2015 ADP, LLC

16. 16 Copyright © 2014–2015 ADP, LLC What Is a Top-Down Budget? The company officer defines the budget and allocates dollars from the top level of the organization down to the first-level managers who are recommending awards.

17. 17 Copyright © 2014–2015 ADP, LLC The next-level managers allocate the budget across the next level of managers subordinate to them, reserving funds to make award recommendations to their direct reports. The top-tier managers allocate the budget across the next level of managers subordinate to them, reserving funds to make award recommendations to their direct reports. Allocating a Top-Down Budget The practitioner receives the event budget and allocates to the top-tier managers.

18. 18 Copyright © 2014–2015 ADP, LLC Sample Top-Down Budget

19. 19 Copyright © 2014–2015 ADP, LLC Sample Top-Down Budget Including Funds Reserved for Direct Reports

20. Guided Practice: Setting Up a Merit Event with Compa Ratio, Lump Sum Awards, and Top-Down Budgeting—Steps 2–3 20 Copyright © 2014–2015 ADP, LLC

21. 21 Copyright © 2014–2015 ADP, LLC Explore: The Compensation Worksheet with ADP Workforce Now Performance Integration

22. 22 Copyright © 2014–2015 ADP, LLC Making Award Recommendations for Merit Events Using Compa Ratio and Lump Sum Awards Overview  Information relevant to compa ratio is displayed on the Compensation worksheet for managers to consider when making award recommendations.  You enter lump sum awards similar to merit increases.

23. 23 Copyright © 2014–2015 ADP, LLC Explore: The Compensation Worksheet for Events Using Compa Ratio and Lump Sum Awards

24. 24 Copyright © 2014–2015 ADP, LLC Explore: The Award Calculator

25. 25 Copyright © 2014–2015 ADP, LLC Explore: The Award Calculator (continued)

26. 26 Copyright © 2014–2015 ADP, LLC What Are Red Circle and Green Circle Employees? TypeDescription Red circle employees Green circle employees

27. 27 Copyright © 2014–2015 ADP, LLC Example: Red Circle Employees

28. 28 Copyright © 2014–2015 ADP, LLC Example: Green Circle Employees

29. 29 Copyright © 2014–2015 ADP, LLC What Is Peer Ratio?  A metric that calculates how an employee is paid relative to the employee’s peers  Calculated by dividing an employee’s annual salary by the average annual salary of the employee’s peers multiplied by 100 Peer ratio = Employee’s annual salary Avg. peers’ annual salaries X 100

30. 30 Copyright © 2014–2015 ADP, LLC Defining Peers

31. 31 Copyright © 2014–2015 ADP, LLC Example Roberta’s annual salary is $20,240.06. The average salary of her peers is $38,923.16. Peer ratio = Employee’s annual salary Avg. peers’ annual salaries X 100 Peer ratio = 20,240.06 38,923.19 Peer ratio =.52

32. 32 Copyright © 2014–2015 ADP, LLC Example (continued)

33. 33 Debrief Copyright © 2014–2015 ADP, LLC

34. Guided Practice: Making Award Recommendations for a Merit Event Using Compa Ratio and Lump Sum Awards 34 Copyright © 2014–2015 ADP, LLC

35. 35 Copyright © 2014–2015 ADP, LLC Important Information

36. Guided Practice: Making Next-Level Award Recommendations and Approving Subordinate Worksheets 36 Copyright © 2014–2015 ADP, LLC

37. 37 Copyright © 2014–2015 ADP, LLC Demonstration: Processing Payroll for Events That Include Lump Sum Awards

38. 38 Copyright © 2014–2015 ADP, LLC Managing Conflicts Overview When you finalize award recommendations, ADP Workforce Now may identify conflicts.

39. 39 Copyright © 2014–2015 ADP, LLC What Are Conflicts? Conflicts may occur if any of the following employee record changes occur after the cutoff date and during the recommendation period:  External salary changes (outside of ADP Workforce Now Compensation)  Employee status conflicts  Pending salary changes (within ADP Workforce Now Compensation)  Currency conflicts  Hire/rehire date conflicts

40. 40 Copyright © 2014–2015 ADP, LLC 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.

41. 41 Copyright © 2014–2015 ADP, LLC Setting Up Bonus Events Overview  Use the Compensation Event wizard as you do when setting up merit events.  Add the bonus compensation type and map to the earnings code before setting up the event.  Like merit events, bonus events have a timeline, but you do not need to align the effective date with the beginning of the pay period because bonus events require their own paydata batch.

42. Guided Practice: Setting Up a Bonus Event : Steps 1–3 42 Copyright © 2014–2015 ADP, LLC

43. 43 Copyright © 2014–2015 ADP, LLC Important Information

44. Demonstration: Using Filter Options to Select a Subset of Employees 44 Copyright © 2014–2015 ADP, LLC

45. 45 Copyright © 2014–2015 ADP, LLC ADP Workforce Now Compensation Reporting What Is Compensation Reporting?  Practitioners can export budget information during event setup.  Practitioners and managers can export worksheet details after an event is rolled out.  Practitioners can use Custom Reports to create their own compensation reports by including compensation-related fields.

46. 46 Copyright © 2014–2015 ADP, LLC Example

47. 47 Copyright © 2014–2015 ADP, LLC Report Output Manager and Budget Details report Worksheet Details report

48. 48 Copyright © 2014–2015 ADP, LLC Explore: Compensation-Related Information in Custom Reports

49. 49 Knowledge Check Copyright © 2014–2015 ADP, LLC

50. 50 Copyright © 2014–2015 ADP, LLC 1. Knowledge Check: Answers 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.

51. 51 Copyright © 2014–2015 ADP, LLC 2. Knowledge Check: Answers 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.

52. 52 Copyright © 2014–2015 ADP, LLC 3. Knowledge Check: Answers 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.

53. 53 Copyright © 2014–2015 ADP, LLC Course Closing Course Objectives Now that you have completed this course, you are prepared to do the following:  Set up and roll out merit compensation events using top-down budgeting and compa ratio, allowing lump sum awards, and integrating ADP Workforce Now Performance.  Make award recommendations using the Compensation worksheet.  Set up and roll out a bonus event.  Explain how to generate compensation-related reports in ADP Workforce Now Custom Reports.

54. Demonstration: How to Access Support 54 Copyright © 2014–2015 ADP, LLC

55. Implementation Survey 55 Please rate your overall satisfaction with each of the following areas:  Sales  Implementation  Products  Training Copyright © 2014–2015 ADP, LLC

56. 56 Copyright © 2014–2015 ADP, LLC www.adp.com/mobilesolutions/

57. 57 Thank You! 57 It was my pleasure to work with you today! Class name: Name and title: Email address: Copyright © 2014–2015 ADP, LLC

58. 58 What Questions Do You Have? 58 Copyright © 2014–2015 ADP, LLC

59. 59 Copyright © 20XX–2015 ADP, LLC Training Evaluation Please take a moment to complete the evaluation.