The Custom Formula Tags section enables administrators to view and create custom formula tags to be used within adjustment guidelines, deferral guidelines, and custom compensation statements.
Custom formula tags utilize values at the time of the task. Tags referenced within in a custom formula tag retain their values for compensation statements regardless of when they are generated. For example, if a custom formula tag has a formula of {SALARY.CURRENT} + {MERIT.INCREASE}, then this tag evaluates the Current Salary and Merit Increase values at the time of the task. However, succession metric tags utilize the most recent succession metric rating values.
Only system-defined numerical tags can be utilized when creating custom formula tags. That is, custom formula tags cannot contain calculations involving other custom formula tags.
Custom formula tags are evaluated as they are defined at the time of the calculation. That is, if the formula is changed in the custom formula tag, it is evaluated using the new formula from that point forward, even when referenced in a previous compensation statement.
- If an edit is made to a custom formula tag that is used in a compensation statement that is associated with a previously completed task, the compensation statement evaluates the custom formula as it currently exists (i.e., after the edit). If the edited formula contains tags that were not applicable to the previously completed task, then those tags are evaluated as 0 and the calculation proceeds as normal.
Custom formula tags are calculated to four decimals of precision.
The following information is displayed for each existing custom formula tag:
- Field Name
- Formula
- Tag Name
- Decimal Precision
- Rounding Rule
- Active - This checkbox determines whether the custom formula tag is active.
- Options - Click the Edit icon
to modify the field name, formula, and tag name.
Note: When a custom tag is used in an adjustment guideline, the precision is always set to 2 and is not configurable.
Custom Formula Tag - Create
To create a custom formula tag, click the Create Custom Formula Tag link in the Custom Formula Tags section. This adds a new entry at the top of the Custom Formula Tags table. Enter the following information for the custom formula tag:
- Field Name - Enter a name for the field, up to 150 characters. This field is required. If multiple languages are enabled for your portal, select the Translate icon to translate the field into other available languages.
- Formula - In this field, define the custom formula for the tag. This can be done using fields and functions. This field is required and has no character limit.
- Fields can be imported into the formula by clicking the Import Fields icon
. See the Formula - Fields section for additional information. - Functions can be added to the formula by clicking the Insert Function icon
. See the Formula - Functions section for additional information.
- Fields can be imported into the formula by clicking the Import Fields icon
- Tag Name - Enter the tag name, up to 75 characters. This field is required, and tag names must be unique. Tag names cannot contain any spaces or special characters. The tag name is used when the custom formula tag is added to adjustment guidelines, deferral guidelines, or custom compensation statements.
- Decimal Precision - The Decimal Precision field can be configured for custom formula tags by clicking the Decimal Precision drop-down menu when creating a new tag or when modifying an existing tag. Administrators can select a decimal precision from zero to four, or they can select the User's Currency option. Selecting the User's Currency option causes the formula output to use the number of decimal points required by the user's currency (i.e. two decimal points for the US dollar, or three decimal points for the Algerian dinar). When the tag is used in a Compensation Statement, the output of the formula uses the configured number of decimal points. Note: When a custom tag is used in an adjustment guideline, the precision is always set to 2 and is not configurable.
- Rounding Rule - A rounding rule can be configured for custom formula tags by clicking the Rounding Rule drop-down menu when creating a new tag or when modifying an existing tag. Administrators can choose from the following options:
- Arithmetic - Selecting this option for the Rounding Rule field causes the output of the formula to be rounded up to the next decimal point if the last decimal digit of the output is five or higher, and causes the output of the formula to be rounded down to the next decimal point if the last decimal digit of the output is lower than five (i.e. 1.55 would be rounded to 1.6, and 1.34 would be rounded to 1.3).
- Up - Selecting this option for the Rounding Rule field causes the output of the formula to be rounded up to the next decimal point, if needed (i.e. 3.44 would be rounded to 3.5, and 3.88 would be rounded to 3.9).
- Down - Selecting this option for the Rounding Rule field causes the output of the formula to be rounded down to the next decimal point, if needed (i.e. 8.23 would be rounded to 8.2, and 8.99 would be rounded to 8.9).
Note: When a custom tag is used in an adjustment guideline, the precision is always set to 2 and is not configurable.
- Active - This checkbox determines whether the custom formula tag is active.
After configuring the custom formula tag, click the Save icon 
to save the tag. Or, click the Cancel icon 
to discard the new tag. When the custom formula tag is saved, the list of custom formula tags is sorted alphabetically by field name.
Formula - Fields
Fields can be imported into the formula by clicking the Import Fields icon . Only active fields appear in the pop-up. However, inactive tags can be manually entered in the formula.
The following tag types can be used in a custom formula:
- User - Numeric
- OU - Numeric
- General Compensation - Numeric
- Base Components - All tags except Breakdown and Percentage tags
- Bonus Components - Numeric amounts
- Equity Components - Numeric amounts
- Performance/Competency - All tags
Formula - Functions
Functions can be added to the formula by clicking the Insert Function icon . This opens a pop-up where you can select the appropriate function. The following options are available:
- MIN - This selects the lowest value from the list of tags.
- MAX - This selects the highest value from the list of tags.
- AVG - This calculates the average of the list of tags.
When a function is selected, it appears in the text box (e.g., MAX( ; )). In the parenthesis, enter the appropriate tags, separated by a semicolon. For example, to determine the lowest performance review score the user has had over the past three years, you could use the MIN function and then add the previous three performance review tags, separated by a semicolon (MIN({2009.REVIEW};{2010.REVIEW};{2011.REVIEW})). Note: Only numeric fields can be added to these functions.
Imported fields and mathematical operations can be performed inside a function to serve as a parameter value as long as each parameter is separated by a semicolon (MAX({2009.REVIEW}*2; {2010.REVIEW}*2; {2011.REVIEW}).
Custom Formula Tag - Edit
To edit a custom formula tag, click the Edit icon in the Options column. Administrators can edit the field name, formula, and tag name. See the Custom Formula Tag - Create section above for additional information.
Custom Formula Tags Use Cases
The following use cases use the following data:
| Employee | SALARY.CURRENT | SALARY.RANGE.MARKET | SALARY.NEW | PERFORMANCE.BONUS | ISO | COMMISSION |
|---|---|---|---|---|---|---|
| Annie Thornton | $50,000 | $55,000 | $55,000 | $3,000 | $1,000 | $0 |
| Audrey Chen | $85,000 | $80,000 | $85,000 | $0 | $1,000 | $10,000 |
| Rich Fromers | $65,000 | $70,000 | $68,000 | $3,250 | $1,000 | $0 |
| Field Name | Formula | Tag Name | Active |
|---|---|---|---|
| Market Ratio | {SALARY.CURRENT}/{SALARY.RANGE.MARKET} | MARKET.RATIO | Yes |
| Total Compensation | {SALARY.NEW}+{PERFORMANCE.BONUS}+{ISO} | TOTAL.COMPENSATION | Yes |
| Total Compensation - Sales | {SALARY.NEW}+{COMMISSION}+{ISO} | TOTAL.COMPENSATION.SALES | Yes |
Use Case 1: Custom Formula Tag in Conditional Statement
A default merit increase guideline is set up with the following custom formula:
- IF {MARKET.RATIO} < 1
- THEN 5000
- ELSE 1000
Action
The compensation manager creates a new compensation plan.
Results
Annie Thornton has a merit increase recommendation of $5,000.
- {MARKET.RATIO}={SALARY.CURRENT}/{SALARY.RANGE.MARKET} = 50,000/55,000 = 0.91
Audrey Chen has a merit increase recommendation of $1,000.
- {MARKET.RATIO}={SALARY.CURRENT}/{SALARY.RANGE.MARKET} = 85,000/80,000 = 1.06
Rich Fromers has a merit increase recommendation of $5,000.
- {MARKET.RATIO}={SALARY.CURRENT}/{SALARY.RANGE.MARKET} = 65,000/70,000 = 0.93
Use Case 2: Custom Formula Tag in Custom Compensation Statement
The custom compensation statement for the 2012 Compensation Task contains the total compensation awarded (TOTAL.COMPENSATION).
Action
Annie Thornton opens her 2012 Compensation Task compensation statement.
Results
Annie Thornton shows a total compensation of $59,000.
- {TOTAL.COMPENSATION}={SALARY.NEW}+{PERFORMANCE.BONUS}+{ISO} = 55,000+3,000+1,000 = 59,000
Use Case 3: Custom Formula Tag in Custom Compensation Statement - Edited
An administrator realizes that the Total Compensation custom formula tag is calculating with the new salary planned for the next year. The administrator changes the formula to the following:
- {TOTAL.COMPENSATION}={SALARY.CURRENT}+{PERFORMANCE.BONUS}+{ISO}
Action
Annie Thornton opens her 2012 Compensation Task compensation statement.
Results
Annie Thornton shows a total compensation of $54,000.
- {TOTAL.COMPENSATION}={SALARY.CURRENT}+{PERFORMANCE.BONUS}+{ISO} = 50,000+3,000+1,000 = 54,000