Compensation Base Types Overview

Similar to bonus types, base types enable administrators to create custom base type components to include as a part of an employee's base compensation package.

Administrators can create, delete, deactivate, and edit base types. Also, administrators can choose whether or not to include a base type as part of base salary calculation.

Adjustment guidelines can be created for custom base type components and can be added to the base section of compensation tasks through Compensation Plan Templates. Components can be added to a template without a budget.

Custom base types are useful when an organization requires components other than Merit Increase, Cost of Living Adjustment, Market Adjustment, and Promotion as part of their base package. Custom base types are also useful when an organization needs to add components to compensation planning without necessarily assigning a budget to the component.


The following is the workflow for implementing custom base types:

  1. Create a base component.
  2. Create adjustment guidelines for the component.
  3. Add the component as part of a base compensation plan template.
  4. Select the template when creating a compensation task.
  5. When performing the compensation planning or modeling task, the manager can enter values for the new base component for employees.
  6. The base component may or may not be used in calculation of employee's new salary.
  7. Values entered for base types are included and reflected in the ensuing compensation statement.


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