How to Make the Bonus Expense Calculation Variable?

Situation

Let's say you need to change bonus expense based on an achievement assumption. So, for example, if bonuses are 70% based on achievement of company goals and you are running ahead of Plan, you can change your bonus expense for this 70% to be 120% of target. Or if you are running behind Plan, set it at 80% of target.

Solution

Load bonus by employee at 100%. Create a new compensation item with basis as % of Wages type. In this compensation item, you will have to map the Bonus compensation item. This new compensation item will help you to increase/decrease the actual bonus (as needed in the example) by -30% to get to 70% based on achievement of company goals. Or say 20% to get 120% of Bonus if you are running ahead of the Plan.

How Changes to Compensation Items Affect Running Scenarios

Let's say you have a % of wages compensation item and you want to change the percentage value for overtime for all part time salaried employees from 7 % to 8 %. Perform the steps below.

1. Access the Compensation Item in Edit mode (as shown below) by navigating to Maintenance > WFP > Workforce Planning Setup > Compensation Item > Edit button.

2. Change the Percentage Value to 8.

3. Click Settings.

4. Select Set as Global Constant.

   

5. Click Save.

6. Now, process all employees to reflect the changes via Cloud Scheduler.