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Exam
: Workday Pro
Compensation
Title
: Workday Pro Compensation
exam
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1.Your company would like to automatically increase pay after 12 months of employment, but only after
400 hours worked.
What configuration will achieve this on compensation steps?
A. Select the "Assign first step during compensation proposal" checkbox and set a progression rule that
counts 12 months.
B. Set a progression rule that counts the number of hours worked.
C. Set a duration of 12 months.
D. Set a duration of 12 months and a step progression rule that counts the number of hours worked.
Answer: D
Explanation:
In Workday Compensation, step progression is controlled through a combination of duration (time-based
eligibility) and progression rules (additional conditions, like hours worked or performance).
Here’s how the scenario breaks down:
Requirement 1 – 12 months of employment
Workday supports step duration, where you can specify that an employee must remain at a step for a
defined period before being eligible for the next step.
Setting a duration of 12 months ensures that the employee only becomes eligible for a step increase after
completing a year in the role.
Requirement 2 – 400 hours worked
Workday allows you to configure step progression rules that evaluate conditions beyond time, such as
hours worked, performance ratings, or other calculated fields tied to the worker.
A progression rule counting the number of hours worked ensures that the pay increase is not triggered
until the employee meets the required 400 hours.
Why not the other options?
A. Assign first step during compensation proposal + 12 months rule – This would only apply the first step,
but it doesn’t enforce the “400 hours worked” requirement.
B. Hours worked only – This ignores the requirement of 12 months of employment.
C. Duration of 12 months only – This ignores the requirement of 400 hours worked.
Thus, only D (duration + step progression rule) satisfies both conditions simultaneously.
Reference (from Workday Pro Compensation knowledge & learning resources):
Workday Compensation – Step Progression Configuration: Duration enforces time-in-step, while
progression rules allow conditions such as hours worked or performance-based eligibility. Workday Pro
Training Materials (Compensation module): Step increase rules require combining duration with
eligibility/progression conditions for multi-criteria automation.
Workday Community – Compensation Step Progression Guide: Confirms that when multiple criteria must
be met (e.g., tenure and hours worked), they must be configured in both the duration setting and the
progression rule logic.
2.You need to create a car allowance plan. In order for your compensation plan to be paid by payroll, you
determine you need to create a compensation element.
What task do you use to set up the compensation element?
A. Maintain Compensation Element Groups
B. Map Compensation Elements to Payroll Earnings
C. Maintain Compensation Elements
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D. Edit Tenant Setup HCM
Answer: C
Explanation:
When setting up a car allowance plan (or any allowance/compensation plan in Workday), you must
ensure that it is tied to payroll through the correct compensation element.
Here’s the breakdown of the options:
Maintain Compensation Elements ✅
This task is where you create, configure, and manage compensation elements.
Every compensation plan (like salary, allowance, bonus) must be associated with a compensation
element, which then links to payroll earnings for processing.
For a car allowance, you would create a new compensation element (type = allowance) so that
payroll can recognize and pay it.
Maintain Compensation Element Groups
This is used to group multiple compensation elements together for easier administration, reporting, or
eligibility rules.
It does not create the element itself, so it’s not the right task here.
Map Compensation Elements to Payroll Earnings
This step is necessary after the element exists, to map the element to the correct payroll earning code (so
payroll knows how to pay it).
However, you can’t map something that hasn’t been created yet.
Edit Tenant Setup HCM
This is a higher-level tenant configuration task for broad HCM settings (security, defaults, integrations,
etc.).
It is not used for creating compensation elements.
The correct first step to create a car allowance compensation plan that can be processed by payroll is to
use the task Maintain Compensation Elements.
Reference (Workday Pro Compensation knowledge & training):
Workday Pro Compensation Training: Compensation elements are the foundation for linking plans to
payroll. The “Maintain Compensation Elements” task is where new elements are created. Workday
Community – Compensation Element Setup Guide: Clarifies the difference between
creating (Maintain Compensation Elements), grouping (Maintain Compensation Element Groups), and
mapping (Map Compensation Elements to Payroll Earnings).
Workday Payroll & Compensation Integration Documentation: Requires elements to be defined before
they can be mapped to earnings.
3.What is the purpose of the compensation element?
A. It ties compensation to payroll earnings.
B. It ties compensation to requisition compensation.
C. It ties compensation to the eligibility rules.
D. It ties compensation to benefit deductions.
Answer: A
Explanation:
A compensation element in Workday is the foundational link between a compensation plan (e.g., salary,
bonus, allowance) and payroll processing.
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When you assign a compensation plan (like a car allowance, bonus, or salary plan), Workday requires a
compensation element that directly maps to a payroll earning code.
This ensures that the pay component flows into payroll correctly, appears on pay slips, and is
taxable/deductible as designed.
Why not the others?
B. Requisition compensation – Job requisitions use compensation packages for recruiting, but elements
are not tied to requisitions.
C. Eligibility rules – Eligibility determines who can receive the plan, not the element itself.
D. Benefit deductions – Those are handled by benefit deduction elements, not compensation elements.
Reference: Workday Pro Compensation Training: Compensation elements map compensation plans to
payroll earnings.
Workday Community – Compensation Elements Overview: Confirms the purpose of elements is payroll
integration, not eligibility or benefits.
4.You have a seniority dynamic calculated plan to increase the amount of the plan every three years of an
employee's employment. An employee reaches their sixth anniversary.
What do you need to do to make sure this employee's plan updates with the new amount?
A. You need to create a custom audit report to identify employees who reach their anniversary, and then
submit a Request Compensation Change to run the calculation and update the amount for the employee.
B. You need to set up the Schedule Automatic Step Progression task so Workday is on schedule to
process the calculation on the anniversary and change the amount for the employee.
C. You need to schedule a Mass Operation Management task to evaluate and update anyone assigned to
the dynamic plan.
D. You do not need to do anything. Workday will check daily and automatically change the amount for the
employee.
Answer: D
Explanation:
A seniority dynamic calculated plan automatically adjusts based on worker attributes such as length of
service.
Workday evaluates dynamic calculations daily, ensuring that once an employee reaches their 3-year,
6-year, or other milestone, the plan amount updates automatically without manual intervention.
Why not the others?
A. Audit report + Request Compensation Change – Unnecessary; dynamic plans do not require manual
updates.
B. Schedule Automatic Step Progression – That applies to step progression plans, not dynamic calculated
plans.
C. Mass Operation Management – Used for bulk updates, but not required here because Workday
auto-updates dynamic plans.
Reference: Workday Pro Compensation – Dynamic Calculated Plans Guide: Dynamic plans are
self-updating based on employee data, recalculated daily.
Workday Community – Dynamic Plan Functionality: Confirms no manual action is needed for
anniversary-based increases.
5.How do you configure a salary plan to prorate an employee's scheduled hours?
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A. Apply FTE%
B. Compensation Element
C. Eligibility Rules
D. Exclude from Merit
Answer: A
Explanation:
When configuring a salary plan, you can choose whether the plan amount should automatically adjust for
part-time employees based on FTE% (Full-Time Equivalent percentage).
Apply FTE% ensures that the salary plan prorates according to scheduled hours vs. full-time hours.
Example: If an employee works 50% FTE, a $60,000 annual salary plan will automatically adjust to
$30,000.
Why not the others?
B. Compensation Element – Elements link plans to payroll but do not control proration.
C. Eligibility Rules – Define who is eligible, not how amounts are prorated.
D. Exclude from Merit – Used in merit review processes, unrelated to proration.
Reference: Workday Pro Compensation Training: Salary plans have a checkbox “Apply FTE%” to prorate
salaries based on work schedule.
Workday Community – Salary Plan Configuration: Confirms FTE% is the method for automatic proration.
6.A company's employees based in Italy get paid 13 times in the year compared to the rest of the
employees.
What base pay plan supports additional months, weeks, or days of pay?
A. Unit salary plan
B. Hourly plan
C. Period salary plan
D. Salary plan
Answer: C
Explanation:
A Period Salary Plan in Workday supports paying employees more than 12 times per year (e.g., 13 or 14
payments for regions like Italy or Spain).
This allows payroll to spread annual salary across the correct number of pay periods.
Why not the others?
A. Unit salary plan – Pays based on units (like per credit hour for faculty), not extra months.
B. Hourly plan – Pays by worked hours, not relevant to salaried employees.
D. Salary plan – Standard salary plan assumes 12 months and does not support extra pay periods.
Reference: Workday Pro Compensation – Salary Plans Overview: Period salary plans are designed for
geographies with >12 pay cycles per year.
Workday Community – Global Compensation Setup: Confirms Italy’s 13-month pay is supported via
Period Salary Plan.
7.A company is in the process of introducing pay ranges for specific job profiles to ensure fair and
competitive compensation, which are implemented as compensation grades in Workday.
What role do compensation grades fulfill within the Workday compensation framework?
A. To provide guidance when entering pay rates during a transaction.
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B. To connect the salary amount to payroll earnings.
C. To determine the employee's eligibility for overtime pay.
D. To calculate which compensation basis is used for reporting.
Answer: A
Explanation:
Compensation grades in Workday define pay ranges (minimum, midpoint, maximum) for job profiles.
Their purpose is guidance during compensation transactions (hire, promotion, merit increase, etc.),
ensuring pay is competitive and consistent.
They do not enforce payroll mapping or overtime eligibility directly but help managers and HR align
salary offers to market ranges.
Why not the others?
B. Connect salary to payroll → That is done by compensation elements, not grades.
C. Overtime eligibility → Determined by work hours & worker type, not grades.
D. Compensation basis for reporting → Controlled by comp basis setup, not grades.
Reference: Workday Pro Compensation Training – Compensation Grades: Defines grades as “guidelines
for pay ranges used during compensation transactions.”
Workday Community – Compensation Grades Overview.
8.Airplane pilots receive a base salary as compensation. They also receive compensation based on the
number of kilometers flown. The more they fly, the more they get paid. You need to create a plan to show
estimated wages based on kilometers flown to include in an offer letter.
What type of plan should you create?
A. Unit-based allowance plan
B. One-time payment plan
C. Unit salary plan
D. Period salary plan
Answer: C
Explanation:
A Unit Salary Plan pays based on units worked (e.g., miles, credits, or kilometers).
In this case, pilots earn extra based on kilometers flown, making unit salary plan the correct choice.
It also supports estimation of wages for offer letters since you can project based on expected units.
Why not the others?
A. Unit-based allowance plan → Allowances are flat recurring payments, not tied to actual units worked.
B. One-time payment → Used for bonuses or ad hoc payments, not recurring per-unit pay.
D. Period salary plan → Handles additional pay periods, not per-unit payments.
Reference: Workday Compensation Plans Training: Unit salary plans are designed for recurring,
unit-driven pay like teaching credits or mileage.
Workday Community – Unit Salary Plans.
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