What are Variable compensation types on Dynamics 365 HR?

Variable compensation types is a way of defining different groups of variable compensation that the company would offer to the employees.

Some examples of variable compensation are

  • Bonus – a promised amount to the employee based on the fixed compensation such as 10%, 20%, 30%
  • Stock options – a variable compensation which offers the employee a number of company stocks based the employee and company performance. The stock options may have a vesting period before the employee is able to access/exchange them. (In short, vesting period is the time period the employee has to wait to be able to exchange the stock options for money😉)

Let’s define the Bonus – Variable compensation type!

Step 1: Navigate to Compensation management workspace > Links > Variable compensation type
Step 2: Create a new Variable compensation type and enter the details as illustrated below:

That’s it, the first step towards defining Hogwarts Retail’s variable compensation policy complete. In the next step we will look at defining the 3 bonus plans for Hogwarts Retail.

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