Have a look at a company’s compensation policy!
Let’s say Tina(Compensation and Benefits administrator) is discussing the compensation policy of Hogwarts Retail with Harry who is a digital HR transformation consultant specialized in Dynamics 365 Human Resources. Here’s the summary of how the compensation policy looks like:
- Every employee contract is agreed with an annual fixed compensation based on the grade of employee’s position.
- Each employee’s position is linked to a grade based on the company’s compensation structure.
- Each grade has a minimum, midpoint and maximum threshold as per company’s stipulated limits.
- When hiring a new employee into a position the HR should be able to get an idea if the employee is being hired within the minimum and maximum range.
- In some exceptional scenarios the HR may hire the employee outside of the min and max range.
- There is a set of 4 grades used across retail jobs in the organization.
- As a HR I should know the reason why a particular compensation was given to a employee.
- Hogwarts retail makes use of external survey companies to define the compensation structure and would be great to have a reference between the company’s grade and survey company’s mapping.
Harry explains what is what on D365HR to Tina!
The key components on D365HR that help define Hogwarts retail compensation policy are:
- Levels: Compensation levels are nothing but grades
- Jobs, levels and positions: Each job is mapped with a compensation level and there can be more than 1 position based on a job. EG: Let’s say “Store manager” is a job which is mapped to grade 04 and there are 2 Store manager positions in Hogwarts retail Netherlands occupied by 2 employees
- Reference points: Reference points are a way to define the compensation thresholds of Minimum, Midpoint and Maximum
- Payrate conversions: Help defining the compensation pay frequency such as Annual, Monthly and also define a conversion factor for other frequencies.
- Compensation grids and Fixed compensation plans: They are the guiding structure of Hogwarts retail compensation policy
- Fixed compensation actions: Link in with the action reason framework and help in keeping track of why a particular compensation was given to a employee.
- Eligibility rules: In a advanced scenario there is a way to restrict some compensation plans for a set of employees. Eg: A special compensation plan defined for executive positions. But we will keep it simple for now😉
Now that we know what will help us in defining Hogwarts retail compensation policy on Dynamics 365 Human Resources, lets dive into getting it configured by following the steps below.
Tina says “Oh Harry, we also have bonus plans for employees!”….. Harry’s response “That’s not a problem, lets have a look it next time”😉
Let’s make Tina happy by getting this configured on Dynamics 365 Human Resources!
Follow the steps on the blog series below:
- D365HR Compensation: Step 1: Job Compensation Levels
- D365HR Compensation: Step 2: Reference points
- D365HR Compensation: Step 3: Payrate conversion factor
- D365HR Compensation: Step 4: Compensation Plans
- D365HR Compensation: Step 5: Fixed compensation actions
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