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.
Blog posts related to this series:
- 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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