dynamic logo

HR & Payroll Add-on for Australian Businesses

Search

Compensation
Management in D365

Time attendance management system

Compensation management(What is it) is the tool that helps managers to be fair with their employees when giving incentives or other benefits. So, one can say that compensation management is the process that allows companies to distribute any type of monetary value to the employees for their work through the company procedures and policies.

The Microsoft dynamics 365 works one of the Compensation tools in HRM to help HR managers in deciding the compensation distribution. Now if you planning on your compensation plans for the company, check the following components you have in Dynamics 365.

 

Components of the compensation management process

· Fixed compensation actions

Actions are the kind of information that changes when compensation of an employee changes. The actions are to ensure the payment of employees along with the precision in the calculation of the compensation specifications.

·Levels

Grade, band, and step are the common levels of the jobs to define the compensation for employees against their job reference.

·Range utilization matrix

So, we use the below formula for calculating the Range utilization:

(Fixed Pay Rate – Range Minimum) ÷ (Range Maximum – Range Minimum)

It is for controlling the pay rate regardless of the employee’s performance within the company.

 

·Reference point setups

The reference setup is the component for reference points, these points are for defining the compensation ranges for each level. They are used to define the compensation ranges for each level. So, for the grade type the reference point plans are a minimum, midpoint, and a maximum.

Compensation matrix

It is a set of reference points and levels for creating the compensation matrix.

Compensation structure

The compensation matrix creates a compensation structure. And the matric contains pay rates related to reference points for each level.

·Eligibility rules

Eligibility rules are set on the basis of employee profiles. So, the rules are set for both compensation plans. Once you have specified the rules, you can define the levels that will apply to the jobs that fall under the plan.

Pay frequencies

It covers the time for which compensation is specified. Moreover, pay frequencies are for converting the amount of compensation from monthly to weekly, biweekly, or annual or vice versa.

Compensation regions

It used to plan the compensation based on the location of the workplace of employees.

Control point

The control point is the ideal rate that any company defines for its employees at the compensation level.

 

Eligibility rules

·Job types

Job types and job functions work in the same way.

Variable compensation types

This is the component that is mostly for setting up cash award business and stock awards as variable compensation plans.

Compensation grids

They contain the compensation structures and one can use them for more than one compensation plan.

Performance plans

It is the plans associate with the allocation matrix of performance. So, you can plan to pay for a pay-for-performance strategy.

Performance ratings

It is to estimate the amount of performance award and merit award.

Compensation Management HR is assisting managers and improves their efficiency. So, if you are the manager and looking for tools for compensation in human resource management, DHRP is here to help. We have a team of expert consultants trained and skilled to help you with integrating the module in the existing system of Microsoft in use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Join The Team

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.