It’s Appraisal Season, Like the leaves which change color in fall and fall off their trees – IT Sector may witness a lot of attrition during and after the appraisal cycle. The reason being the outcome of the appraisal process . It is vital for a growing organization to streamline their appraisal process with planning their funding channels, organizing the pay components and administering it.
Existing PeopleSoft features of Tree Manager, Approval Workflow Engine (AWE), HCM Delegation Framework and pagelet wizards are inter woven with a streamlined process to accomplish what Oracle calls PeopleSoft 9.1 Compensation. Interestingly, the interoperability aspects with ePerformance, Core HR and variable compensation adds more value and increased ROI for the organizations which would implement PeopleSoft 9.1 HCM Compensation.
The first thing that an organization eyes is their budget/Funds for an appraisal / Compensation cycle, followed by the planning and allocation of collective Compensation aspects. Embedded analytics and user friendly interface enables Compensation Administrators or Managers to build what peoplesoft terms it as “Compensation Cycle”.Initial Setup would involve defining proration rules, rounding rules, salary plan, action reason,.. and Configuring compensation matrix.
Example Appraisal – Compensation Configurable matrix:
Rating Funding Pct Min Percent Max Percentage
————- ————— ————— ——————–
6 42 42 42
5 30 30 30
4 19 18 19
3 8 8 8
2 2 2 2
1 2 1 2
For a compensation cycle, the funding overview for salary plans summarizes the total number of head count which would be involved in the appraisal cycle along with the calculated total salaries, calculated amount, calculated percent, qualified headcount, qualified salaries, funded amount, funded percent, proposed amount, proposed percent.
Once the compensation cycle (01JAN2009 to 31DEC2009) is defined, the appraisal team works with the variable compensation plans and compensation rules to manage the available funding for an appraisal cycle. The Pay out periods as well as the Pay out types are also defined using the cash or available stock options. It is one of the features in which many employers tend to provide stocks instead of a cash hike. Followed by the compensation team, the manager self service of PeopleSoft is used by the managers to update appraisal info of an employee or a group (direct reports / Indirect reports) along with their review ratings. The Approval process plays a vital role in approving the planned / updated compensation details using the delivered roles of “submitter” “reviewer” and “Confirmer”.
On the other hand, the administrator is equipped with the compensation dashboard which constitutes the Process flow Build->Open->Load->Close and status history which manages the manager’s access rules (notification period, default, review period, update period)
PeopleSoft 9.1 Compensation also allows employers to handle exceptional cases during an appraisal cycle by incorporating “Key Resource Bonuses” on the Award Plans present with the compensation module.
In total, PeopleSoft 9.1 HCM Compensation seems to be quiet promising in bring in transparency and streamlined appraisal cycle within a growing organization.