Saturday, 5 April 2025

Types of Compensation in Workday (Core and Advanced) ?

Types of Compensation in Workday (Core and Advanced) ?

Q: What are the two types of compensation in Workday, specifically Core Compensation and Advanced Compensation?

A:

1. Core Compensation: Covers foundational pay elements like Salary (fixed annual pay), Hourly (pay per hour), and Allowances (e.g., car allowance). It’s the primary compensation assigned to all workers.

2. Advanced Compensation: Includes performance-based or variable pay like Bonus (e.g., annual bonus), Merit (pay increase for performance), Commission (sales-based), Stock (e.g., RSUs), and One-Time Payments (e.g., signing bonus). Used for more complex compensation scenarios.

Q: How are Core and Advanced Compensation managed in Workday?

A:

Core Compensation: Configured via basic Compensation Plans (e.g., Salary Plan, Hourly Plan). Assigned during hiring or job changes using "Propose Compensation" in Business Processes (BPs).

Advanced Compensation: Managed through Advanced Compensation Plans (e.g., Bonus Plan, Merit Plan). Distributed via Compensation Review Processes (e.g., annual merit cycles) or ad-hoc requests (e.g., one-time payments).

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