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Enroll an employee in a variable compensation plan

Applies to these Dynamics 365 apps:
Human Resources

The Compensation and Benefits manager can enroll employees in variable compensation plans to calculate cash and non-cash awards for employees. This procedure assumes that a variable compensation plan was created with the Enable enrollment field set to Yes, and that eligibility rules were created for that variable compensation plan. The demo data company used to create this procedure is USMF. To begin this procedure, go to Human resources > Workers > Employees > Compensation > Variable plan enrollment.

  1. Select New.

  2. In the Plan field, select the dropdown button to open the lookup.

    The plan lookup is filtered to only show the variable compensation plans that the employee is eligible for based on the eligibility rules.

  3. In the list, select the link in the selected row.

  4. Toggle the expansion of the General section.

  5. In the Effective date field, enter a date.

  6. Select Save.

  7. Toggle the expansion of the Overrides section.

    • Optionally, a hire rule date can be set to override the hire date for an employee when the hire rule specified for the selected variable plan is Percent.
    • If the variable plan is a percent of basis plan, the award percentage can be overridden for the employee. If the variable compensation plan is a number of units plan, the number of units can be overridden for the employee.
    • If the employee should be given a flat amount for their award, the amount can be set here.

  8. Toggle the expansion of the Organizational overrides section.

    If the employee's performance should consider the performance of different departments, or a department other than the one assigned on the employee's position, the department can be overridden. The Percent column should total 100.

Note

This feature is currently in preview. The functionality and behavior that are described might change before general availability (GA).

[This is prerelease documentation and is subject to change.]

In Dynamics 365 Human Resources, you can now associate variable compensation plans, including awards and enrollments, directly to an employee's position. This enhancement gives organization more flexibility to manage variable compensation in alignment with job roles. Therefore, it helps ensure a more accurate and scalable compensation strategy.

Previously, variable compensation plans were linked to the employee level. By associating plans with positions, HR managers can now streamline compensation planning, especially in organizations that have position-based structures.

Important

To start to use this functionality, enable the Ability to link variable pay to position feature in Feature management.

To link a variable plan award to a position, follow these steps.

  1. Go to Human Resources > Workers, and select a worker.
  2. On the Action Pane, on the Compensation tab, select Variable plan awards.
  3. On the Employee variable compensation awards page, in the Position field, select the position.
  4. Save your changes.

To link a variable plan enrollment to a position, follow these steps.

  1. Go to Human Resources > Workers, and select a worker.

  2. On the Action Pane, on the Compensation tab, select Variable plan enrollment.

    The Employee variable compensation enrollment page includes a new grid that you can use to associate multiple positions with a plan.

  3. On the Positions tab, select Add.

  4. In the Position field, select the position.

  5. Save your changes.

Data entity updates

To ensure that position details are exported to payroll systems, the following data entities were updated:

  • Employee variable compensation (HcmVariableCompensationAwardEntity)
  • Payroll integration variable compensation award entity(PayIntV1HcmVariableCompensationAwardEntity)
  • Payroll integration variable compensation enrollment position (PayIntV1HcmVariableCompensationEnrollmentPositionEntity)
  • Variable compensation enroll position details (HcmVariableCompensationEnrollmentPositionEntity)

Learn more about detailed changes that are related to payroll entities in Payroll integration API introduction.