Adjustment Guideline - Create

 

Adjustment guidelines can be created by Organizational Unit (OU). These guidelines can be created as specific amounts, can implement a recommendation matrix or custom formula, and can be discretionary or non-discretionary.

To create an adjustment guideline, go to Admin > Tools > Compensation Management > Adjustment Guidelines. Then, click the Create New Adjustment Guideline link.

In the Name field, enter a name for the adjustment guideline.

In the Component section, select the following options:

  • Type - Select the appropriate component type for the guideline from the drop-down list. This option determines which components appear in the Components drop-down. The available types are Base, Bonus, and Equity. This is a required field.
  • Components - This drop-down only contains the components that are associated with the component type selected in the Component Type drop-down. This is a required field. The available options depend on the component type selected from the Type drop-down list. Note: If a component type is not selected in the Type drop-down, then no components appear in the Components drop-down.
    • Base Types - See Adjustment Guideline - Create - Base Types.
      • Merit Increase - An increase to an employee's salary based on a combination of performance metrics and compa-ratio.
      • Market Adjustment - An adjustment to an employee's salary to bring the employee's salary up to market levels.
      • Cost of Living Adjustment (COLA) - An across the board adjustment to salaries to bring pay in line with cost of living increases.
      • Promotion - An increase based on the employee being raised in position or rank.
      • Custom Base Types - These allow organizations to create additional base components. These function like standard base components.
    • Bonus Types - See Adjustment Guideline - Create - Bonus Types.
      • Bonus - A one time cash award usually due to performance factors, including company performance, division performance, and individual performance for a given period.
      • Custom Bonus Types - These allow organizations to create additional bonus components. These function like standard bonus components.
    • Equity Types - See Adjustment Guideline - Create - Equity Types.
      • RSA - A restricted stock award is a grant of company stock which is restricted to an employee until the shares vest.
      • ISO - An incentive stock option is only available to company employees and is reportable as income only when the stock is sold.
      • NQO - A non-qualified stock option is reportable as income when the option is exercised.
      • LTI Award - This is equity that is allocated to employees as a full monetary amount, rather than a grant in shares or options. The full award may be split or distributed between RSA, ISO, or NQO grants.

For each active bonus and equity type, there is a target component associated with it that is available from the drop-down list. For example, if RSA is available, Target RSA is also available. By selecting one of the "Target" component options, administrators are able to set an employee's target guidelines.