The Compensation Management Process


This is a common business process used by compensation departments to plan and administer compensation policies.


Before you start the compensation process, you must create your organizational structure and all necessary organizational units.

Process Flow

When you have created your organizational structure, you can begin the compensation process:

  1. Define the internal value of jobs and positions. You can enter data from external job evaluation systems and salary surveys.
  2. Define compensation plans and group them
  3. Define guidelines and eligibility rules and associate them to the plans
  4. Define processes for processing the plans
  5. Perform budgeting for compensation management
  6. Plan and administer compensation policies
  7. Approve compensation awards
  8. Administer approved compensation


The system updates employees’ records with data provided by the Compensation Management component, and the employees receive the corresponding compensation awards.