Have a look at a company’s variable compensation policy!
Let’s say Tina(Compensation and Benefits administrator) is discussing the variable 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:
- Let’s start with the basics first, at Hogwarts retail every employee is part of one of the 3 Variable compensation plans as listed below:
- 10% Bonus
- 20% Bonus
- 30% Bonus
- The performance cycle at Hogwarts Retails spans between January and December every year
- Based on the employee and company performance, all eligible employees are part of the bonus payout process and a specific bonus amount will be calculated and a bonus award will be allocated on the 1st of February every year.
Harry explains what is what on D365HR to Tina!
The key components on D365HR that help define Hogwarts retail compensation policy are:
- Variable compensation types: If a company has different types of variable compensation such as bonus, stock options – we use variable compensation types to define them
- Variable compensation plans: The 10, 20 and 30 percent bonus plans of Hogwarts Retails are nothing but variable compensation plans
- Eligibility rules: In a advanced scenario there is a way to restrict some variable compensation plans for a set of employees. Eg: A special bonus plan defined for executive positions. But we will keep it simple for now😉
- Variable plan awards: Based on the performance of employees and the company all eligible employees will have a bonus amount paid out. This will be captured against the employees as a variable plan award.
Now that we know what will help us in defining Hogwarts retail variable compensation policy on Dynamics 365 Human Resources, lets dive into getting it configured by following the steps below.
Let’s make Tina happy by getting this configured on Dynamics 365 Human Resources!
Follow the steps on the blog series below. I will update the steps with hyperlinks to the blog posts as they are shared in the next 4 days😀 Stay tuned!
- D365HR and your company’s variable compensation policy!
- D365HR Variable Compensation: Step 1: Variable compensation types
- D365HR Variable Compensation: Step 2: Variable compensation plans
- D365HR Variable Compensation: Step 3: Eligibility rules
- D365HR Variable Compensation: Step 4: Variable plan awards
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