PARIS
This article in this week's The Economist on the pitfalls of badly designed bonuses is a timely reminder that annual compensation reviews are right around the corner. Having spent half of my 12-years' Workday experience implementing the module dedicated to salary review, bonus and stock awards, here are some useful tips:- Try to
anticipate your Advanced Compensation needs when designing and implementing
your Core model. There is nothing worse, after having spending time designing, implementing, deploying and training your workforce on one version
of Core HR or Core Compensation, than to have to revisit it at the last moment because,
say, the way you defined FTE in Core HR is a big No Go in Advanced
Compensation.
- Make sure you
plan enough time and resources for a dry run in your Sandbox tenant.
- If it’s your
second year running the module, then go back to your notes as to what went
wrong (despite careful planning, things inevitably go wrong – believe you me, I
was there) and make sure you fix those issues for 2025. Check Workday's recent releases: Something that was not possible last year may now have become a standard Workday feature.
- Clean up your
data: A major part of your support during the several months that your review
will run will be dedicated to adding employees who were left out of the review
when you launched it because they were missing, for instance, a stock plan. Or, conversely, having to remove some employees from your bonus review because you
forgot to update their base salary and their bonus payout comes out wrong.
- Last but
certainly not least, test thoroughly your participation rules for parallel events and
watch out for those innocent-looking configuration decisions which can translate
into major costs for the company. I remember that at one of my clients we were
puzzled by the unanimity managers from various latitudes displayed when
terminating their employees, until we realized that using that very date and
not one earlier, allowed managers to increase their budget (after all, there’s
little sense in raising the salary of a departing employee, is there?) Managers
from all around the world weren’t necessarily in cahoots but like many other
users when they find an opportunity to game the system, they rarely pass up on
it.