Welcome to Using the Compensation Feature of Talent
in ADP Workforce Now
Part 2
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Welcome to...
Using the Compensation Feature of
Talent in ADP Workforce Now
Part 2
W168_ILT_WFN91V02_0316
Norms
 Minimize distractions.
 Return promptly from breaks.
 Participate. Ask any question that comes to mind.
 Make mistakes. This is a safe environment.
 Put your phone on mute during the presentation.
– Press *6 to mute.
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Course Purpose
This course prepares you to use the Compensation feature of
Talent in ADP Workforce Now for more complex merit and bonus
events. Topics include setting up merit compensation events
using a top-down budget and compa ratio, allowing lump sum
awards, and integrating ADP Workforce Now Performance;
setting up bonus compensation events; making award
recommendations for compensation events; and reporting on
compensation.
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Course Agenda
 Setting Up Merit Events with Compa Ratio, Lump Sum Awards,
and Top-Down Budgeting
 Making Award Recommendations for Merit Events Using
Compa Ratio and Lump Sum Awards
 Managing Conflicts
 Setting Up Bonus Events
 ADP Workforce Now Compensation Reporting
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Prerequisites and Advance Preparation
Using the Compensation Feature of Talent in ADP Workforce
Now Part 1
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Review: Using the Compensation Feature of Talent in
ADP Workforce Now Part 1
Concept/Topic
Description
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The ADP Workforce Now Compensation Process
Approving
Authority
Stage 5: Approve
Compensation Event for
Payout
Practitioner
Stage 1: Set Up and Roll
Out Compensation
Event
Manager’s
Manager
Manager
Stage 4: Review
Worksheets, Resolve
Conflicts, and Submit
Worksheets for Approval
Stage 6: Close Compensation
Event (includes Payroll
Processing and Distributing
Compensation Notices)
Stage 3: Make Award
Recommendations and
Approve/Reject Subordinate
Worksheets (Optional)
Stage 2: Make Award
Recommendations and
Submit Worksheets
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Setting Up Merit Events with Compa Ratio, Lump Sum
Awards, and Top-Down Budgeting
Overview
 Set up events with various attributes to provide guidelines for
managers when making award recommendations.
 Set up a merit event that uses the following:
– Compa ratio as a guideline when awarding compensation
– Lump sum awards for employees who are not eligible for
merit increases
– A top-down budget
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What Is Compa Ratio?
 Compa ratio is a formula commonly used to assess the
competitiveness of an employee’s pay level.
 Compa ratio is the short form for comparative ratio.
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Example: Edward Bonner
Compa ratio = Employee’s salary
Pay grade midpoint
1.11 = 56243.20
50571.00
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Example: Albert Delaney
Compa ratio = Employee’s salary
Pay grade midpoint
1.06 = 53,560.00
50,571.00
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What Are Lump Sum Awards?
 One-time awards that are given when merit increases are
not permitted but performance warrants an award
 Do not impact an employee’s salary
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Example
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Guided Practice: Adding Compensation Types and
Mapping Them to Earnings Codes
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What Is a Top-Down Budget?
The company officer defines the budget and allocates dollars
from the top level of the organization down to the first-level
managers who are recommending awards.
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Allocating a Top-Down Budget
The practitioner receives the event budget and
allocates to the top-tier managers.
The top-tier managers allocate the budget
across the next level of managers subordinate to
them, reserving funds to make award
recommendations to their direct reports.
The next-level managers allocate the budget
across the next level of managers subordinate
to them, reserving funds to make award
recommendations to their direct reports.
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Sample Top-Down Budget
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Sample Top-Down Budget Including Funds Reserved
for Direct Reports
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Guided Practice: Setting Up a Merit Event with Compa Ratio,
Lump Sum Awards, and Top-Down Budgeting—Steps 2–3
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Explore: The Compensation Worksheet with
ADP Workforce Now Performance Integration
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Making Award Recommendations for Merit Events
Using Compa Ratio and Lump Sum Awards
Overview
 Information relevant to compa ratio is displayed on the
Compensation worksheet for managers to consider when
making award recommendations.
 You enter lump sum awards similar to merit increases.
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Explore: The Compensation Worksheet for Events
Using Compa Ratio and Lump Sum Awards
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Explore: The Award Calculator
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Explore: The Award Calculator (continued)
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What Are Red Circle and Green Circle Employees?
Type
Description
Red circle employees
Green circle employees
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Example: Red Circle Employees
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Example: Green Circle Employees
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What Is Peer Ratio?
 A metric that calculates how an employee is paid relative to the
employee’s peers
 Calculated by dividing an employee’s annual salary by the
average annual salary of the employee’s peers multiplied by
100
Peer ratio =
Employee’s annual salary X 100
Avg. peers’ annual salaries
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Defining Peers
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Example
Roberta’s annual salary is $20,240.06. The average salary of her
peers is $38,923.16.
Peer ratio =
Employee’s annual salary X 100
Avg. peers’ annual salaries
Peer ratio =
20,240.06
38,923.19
Peer ratio =
.52
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Example (continued)
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Debrief
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Guided Practice: Making Award Recommendations for
a Merit Event Using Compa Ratio and Lump Sum Awards
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Important Information
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Guided Practice: Making Next-Level Award
Recommendations and Approving Subordinate Worksheets
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Demonstration: Processing Payroll for Events That
Include Lump Sum Awards
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Managing Conflicts
Overview
When you finalize award recommendations, ADP Workforce
Now may identify conflicts.
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What Are Conflicts?
Conflicts may occur if any of the following employee record
changes occur after the cutoff date and during the
recommendation period:
 External salary changes (outside of ADP Workforce Now
Compensation)
 Employee status conflicts
 Pending salary changes (within ADP Workforce Now
Compensation)
 Currency conflicts
 Hire/rehire date conflicts
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Example
 When finalizing recommendations, the Manage Conflicts page
displays a list of employees with conflicts who are included in
the event. The practitioner resolved the conflicts and finalized
the recommendations.
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Setting Up Bonus Events
Overview
 Use the Compensation Event wizard as you do when setting up
merit events.
 Add the bonus compensation type and map to the earnings
code before setting up the event.
 Like merit events, bonus events have a timeline, but you do not
need to align the effective date with the beginning of the pay
period because bonus events require their own paydata batch.
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Guided Practice: Setting Up a Bonus Event:
Steps 1–3
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Important Information
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Demonstration: Using Filter Options to Select a
Subset of Employees
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ADP Workforce Now Compensation Reporting
What Is Compensation Reporting?
 Practitioners can export budget information during event setup.
 Practitioners and managers can export worksheet details after
an event is rolled out.
 Practitioners can use Custom Reports to create their own
compensation reports by including compensation-related fields.
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Example
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Report Output
Manager and Budget Details report
Worksheet Details report
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Explore: Compensation-Related Information in
Custom Reports
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Knowledge Check
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1. Knowledge Check: Answers
Which of the following must you do in order for bonus payments
to be processed correctly? (Select all that apply.)
a. Add the bonus compensation type.
b. Add the lump sum compensation type.
c. Map the compensation type to the appropriate earnings code.
d. Add the event to your payroll grid.
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2. Knowledge Check: Answers
Practitioners generally complete all of the following stages in the
ADP Workforce Now Compensation process except:
a. Set up and roll out the compensation event.
b. Make award recommendations.
c. Review worksheets and submit them for final approval.
d. Update pay rates.
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3. Knowledge Check: Answers
Which of the following are true of allocating a top-down budget?
(Select all that apply.)
a. The system generates an estimate based on a target
percentage that you enter when setting up the event.
b. The system allocates the budget proportionately based on the
managers’ number of direct reports.
c. As practitioner, you enter budget allocations across the
organization to the highest-level managers first.
d. When allocating their budgets, managers need to ensure that
they have sufficient funds to make award recommendations to
their direct reports, as well as to their direct reports’ direct
reports.
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Course Closing
Course Objectives
Now that you have completed this course, you are prepared to
do the following:
 Set up and roll out merit compensation events using top-down
budgeting and compa ratio, allowing lump sum awards, and
integrating ADP Workforce Now Performance.
 Make award recommendations using the Compensation
worksheet.
 Set up and roll out a bonus event.
 Explain how to generate compensation-related reports in ADP
Workforce Now Custom Reports.
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Demonstration: How to Access Support
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Implementation Survey
Please rate your overall satisfaction
with each of the following areas:
 Sales
 Implementation
 Products
 Training
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www.adp.com/mobilesolutions/
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Thank You!
It was my pleasure to work with you
today!
Class name:
Name and title:
Email address:
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What Questions Do You Have?
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Training Evaluation
Please take a moment to complete the evaluation.
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