In today’s dynamic business landscape, effective compensation management has become an integral factor of the dynamic human resources (HR) landscape.
Companies aiming for better talent retention, productivity, and employee motivation have started to rely on advanced compensation solutions, like Workday Advanced Compensation, which transcends traditional compensation management solutions to enable companies to create a dynamic and effective compensation package.
Read on to learn more about Workday Advanced Compensation and how our senior-level Workday consultants can help your organization.
What is Workday Advanced Compensation?
Workday Advanced Compensation is an additional product that users can add to their initial Workday Compensation setup. This allows users to efficiently manage merits, bonuses, stock grants, and any other employee compensation changes or delays in their compensation cycle.
Most companies perform their compensation review processes on a quarterly or monthly basis. However, some business processes in Workday are better fit and targeted toward an annual compensation setup, typically beginning with the current process assessment by a compensation administrator.
Organizations often try to create and manage the compensation review process offline with spreadsheets or a combination of disparate tracking systems. When users try to handle these tasks with a system other than Workday, they miss a chance to create a comprehensive picture of their compensation plans.
With Workday Advanced Compensation, users can manage all aspects of their compensation review process with a single data source, ensuring accurate and efficient compensation management across the entire organization.
Key Features of Workday Advanced Compensation
Let’s take a look at the main Workday Advanced Compensation components:
Robust Compensation Management
Global: Organizations can extend configurations globally by using customizable currency options and adaptable area profiles. Workday Advanced Compensation immediately adjusts to global allowance plans based on salary changes while ensuring allowance plans remain compliant with statutory requirements.
Flexible: With Workday’s easily configurable, worldwide system and the data within their Workday system, users can specify individual compensation packages, programs, plans, and procedures across their organization.
Single Technological Source: With Workday Human Capital Management (HCM), users can access real-time data for advanced compensation planning, analysis, and execution to connect disparate solutions, thus eliminating the need for complex integrations.
Global Compensation Packages: Create compensation packages quickly by combining various plans, grades, and compensation bases. To offer complete package alternatives, apply grades with separate grade profiles, such as employment level within a specific location.
Use compensation eligibility rules considering job profiles and other employee attributes to guide individual plan assignments. Depending on the eligibility rules provided, worker relocation negotiated in Workday will instantly activate compensation strategy or package analysis.
Workday offers the following compensation plans for business users:
- Unit allowance
- Long-term cash
- Multiple-time payments
- One-time payments
- Future payments
Insightful Process Flow: With the Workday Business Process Framework (BPF), companies can focus specific attention and effort on the right people at the right time.
Compensation administrators can set up the BPF to route approvals, notifications, and alerts for tasks ranging from pool authorization to final submission.
Customers can access practically any Workday data at the point of action and relevant, contextual elements, like talent and market survey data, to drive better choices and more informed decision-making.
Process Configuration: No two companies are alike in outlining and managing their compensation processes.
The Workday framework allows users to choose included strategies, create pools for each strategy, manage holdback, and allow lump-sum modifications and promotions as part of the compensation process.
Organizations can also modify targets as performance results become available or the method process framework evolves.
Tailored Worksheet: Compensation worksheets can be tailored for simplicity, efficiency, and insight, allowing managers to engage with their assessments and make better decisions.
The Workday Configurable Grid provides managers with an easy-to-use worksheet with the information needed to recommend compensation and warning messages to help teams stay within budget over time.
High-level managers can accomplish merit tasks for their teams and gain visibility across teams led by reporting managers. Managers can get additional information by configuring the smart panel function on the grid to display specific worker attributes as needed.
External Data: With Workday, users can update and store data from multiple systems and sources, including information from salary surveys, location-specific cost-of-living surveys, and other financial information for clients not utilizing Workday Financial Management.
This data can then be imported into Workday and utilized for reports, penetration analysis, and pay raise recommendations, enabling more informed decisions and efficient pay administration.
Dashboards and Reports: Making decisions without accurate or relevant information can be expensive and time-consuming. Workday offers executives, managers, and administrators a unique dashboard, audit trails, and records for a thorough assessment of critical compensation plan initiatives.
Clients are encouraged to take action with automatic alerts on desktop and mobile devices. By leveraging the pay equity dashboard, users can access compensation data, drill down to gain better insight, present a complete picture of the company’s pay processes, and take action.
Terminations, promotions, transfers, and new hires shouldn’t wait for their existing processes to begin new compensation cycles.
Through rules that automatically handle these transactions, Workday allows clients to plan events and eliminates manual tasks typically involved in managing and optimizing compensation systems.
Benefits of Workday Advanced Compensation
Here are some of the key benefits of Workday Advanced Compensation:
Automatic Tax Filing
The system utilizes third-party tax filing software for precise and simple processes.
Efficient Payroll Processes
Workday Advanced Compensation delivers a comprehensive suite of payroll solutions that enable employers to streamline payroll tasks efficiently and effectively.
Employers can use the Direct Deposit functionality in Workday Advanced Compensation to quickly and safely deposit employee paychecks or disbursements into workers’ bank accounts.
The system’s intelligent time-tracking features provide an efficient way to track how much time employees spend working and monitor the frequency of their vacation and sick days. This allows businesses to control staff attendance and ensure more accurate time-tracking data across the entire organization.
With Workday, companies can access comprehensive payroll and tax information, offering a better understanding of the expenses related to payroll administration and improving data consistency across the board.
Increased Cash Flow
Companies can improve their core cash flows by reducing the money paid out in wages. Workday’s Payroll Advance feature gives employees early access to a portion of their paychecks and enhances budgeting and money management activities for users.
Companies can increase worker productivity by allowing workers to get a portion of their salary early. This way, workers can concentrate on finishing their work knowing their money will be paid on time.
Better Access to Financial Services
By providing employees with early access to a portion of their salary before payday, employers can help their employees manage their money more effectively.
Lower Employee Turnover Rates
With early compensation access, employers can effectively retain quality employees while lowering turnover rates. This will help organizations retain top talent and reduce attrition rates simultaneously.
Enhanced Employee Engagement
Early access helps organizations improve employee engagement, simplifies compensation processes and gives employees a reason to stick with their company.
Here are a few key capabilities of Workday Advanced Compensation:
Rewarding, engaging, and retaining talent
- Smooth coordination of events: No need to worry about managing ineligible participants in the planning process or reconciling data with just one system for human capital management (HCM) and compensation. Workday minimizes system complexity and the need for manual labor by automatically considering all parallel processing rules.
- Pay for performance: To recognize their top performers, managers can access budget pools and reward budgets from administrators. Compensation choices can be informed by relevant, contextual data, including core talent data, market survey data, and other information found in Workday.
- Promote transparency: Give employees a complete and transparent breakdown of their benefits and compensation packages with comprehensive total rewards statements.
- More visibility: Warning notifications ensure budget controls, boost consistency, and access award pools through comprehensive worker data management initiatives.
- Collaborative planning process: Users can simplify system setup and ensure a smooth employee experience with configurable grid features.
How We Can Help
Whether you’re looking to add to your existing Workday setup with Advanced Compensation, additional support conducting Workday Advanced Compensation training, or just an extra hand beginning your journey with Workday, Surety Systems can help.
Our senior-level Workday consultants have the functional skills and expertise needed to help you successfully implement a new Workday system or add to your current Workday ecosystem. From creating the initial implementation strategy to providing ongoing support after your Go-Live date, we’ve got you covered.
Ready to learn more about Workday Advanced Compensation and how our senior-level Workday consultants can help you maximize success?
Contact us today!