Workday Compensation Interview Questions and Answers

Hello buddies!

Here are The Workday Compensation Interview Questions.

1. What is Workday compensation?

Answer: – Workday Compensation delivers your compensation administrators with the right set of tools for making the best resolution across the company, from fascinating the right talent to rewarding the workers. With the help of Workday Compensation, the administrators can certainly report and take action on your compensation plans in actual time and use market information to make well-informed compensation resolutions. The employees can see their total compensation on any mobile device at any point of time.

2. What are the key benefits of Workday Compensation?

Answer: – Workday Compensation process framework enables you to:

• Select the plan types
• Establish pools for each plan
• Manage holdbacks
• Allow for lump-sum adjustments and promotors

3. What are the Key Product Areas of Workday compensation?

Answer: –

• Management by compensation basis
• Configurable compensation statements
• Equity tracking
• Flexible pay-range segments
• Step-progression management

4. Explain about Workday Compensation survey management?

Answer: – Streamline the submission of compensation surveys as well as quickly connect the workers with matched survey job categories. Maintaining multiple compensation survey vendors, surveys, and products. Get visibility into matches between survey jobs and Workday job profiles, and recommend job matches in new compensation surveys based on past matches.

5. What are the Compensation Components in Workday?

Answer: – A Compensation component can be any compensation object such as compensation:

• Element
• Earning
• Grade
• Grade profile
• Package
• Plan

6. Explain briefly about Compensation Elements in Workday?

Answer: – Compensation elements are the link between compensation and payroll. When a compensation element is linked to a plan and the plan is allocated to a worker, So the Workday can decide which wages are used to pay the worker for his or her compensation using the pay calculation process.

7. What are the steps to create a Compensation Package in Workday?

Answer: – Below are the step-by-step process of creating a Compensation Package in Workday:

• Enter Create Compensation Package into the search box.
• Select the Create Compensation Package task.
• Enter today’s date as the Effective as of date.
• Select the package name.
• Select the compensation grade.
• Select the compensation plan.
• Click OK to save

          Click Close.

8. What are the Compensation Plans in Workday?

Answer: –

In Workday, we have many compensation plans, such as:

• Salary
• Hourly
• Allowance
• Merit
• Bonus
• Future Payment
• Commission
• Stock
• One-Time Payment

9. What is Compensation in Workday?

Answer: –

• Compensation consists of base salary or hourly plan and, if applicable for an employee, one or more period salary, allowance, stock, bonus, merit, or commission plans.
• Compensation is not the actual wages in an employee’s paycheck.
• Salary or hourly plans represent the rate per frequency that an employee is eligible to earn.
• Compensation may include the accounting of one-time payments and stock grants.
• Compensation is assigned to employees only; no compensation is assigned to contingent workers.
• Being eligible for a compensation plan does not mean the employee is assigned to it. Being assigned to it does not mean the employee will get an actual payment (bonus/merit).

10. What are the Prerequisites for creating a compensation package?

Answer: –

 Before creating the compensation package, you should:

• Create 1 or more compensation plans to include in the compensation package.
• Create compensation eligibility rules.
• Security: Set-Up: Compensation Packages domain in the Core Compensation functional area.

11. What are Compensation Grades?

Answer: – The Compensation Grade provides pay ranges as references. Optionally your grades may include additional pay ranges, called compensation basis, to group together compensation components to define estimated earnings for different employee populations, which can be used in other compensation calculations and reports.

12. What are Grade Profiles?

Answer: – Grade Profiles allow you to assign a different compensation ranges to workers than the default.

13. What should we need to do before setting up Compensation grades?

Answer: –

 Before setting up the Compensation grades first, we need to:

• Set up the compensation framework.
• Create frequencies
• Security: Set-Up: Compensation Packages domain in the Core Compensation functional area.

14. What are the steps to assign the components to rules?

Answer: – The following are the steps to assign the components to rules:

• First, enter Allocated Compensation Components into the search box.
• And then select the Allocated Compensation Components to the Rule task.
• After that, enter the following details:

–Effective as of the date

–Eligibility rule

• Click OK to continue.

–Select compensation package

–Select compensation grade

–Select compensation plans

• Click OK to save.

Click Close.

15. What are Frequencies in Workday compensation?

Answer: –

• We need to define frequencies for use in compensation and payroll calculations.
• Workday supplies a set of frequency types. You can modify them or add variations as needed.
• For Example: – You can create an hourly frequency for the U.S. and another for Europe if the standard number of working hours is different.
• Access the Maintain Frequencies task to create the frequencies.

16. Explain about Compensation Package Analytics?

Answer: – The Compensation Package Analytics define which pay ranges, segments, compa-ratio, compensation package analytics, and error messages you want to be displayed on various compensation-related reports and tasks, such as:

• Request Grade Change
• Request Compensation Change
• View Compensation
• My Team View
• Direct Report Compensation Summary

17. What is the use of Compensation Changes Report in Workday?

Answer: – View all compensation changes within a time period. The compensation charges can be filtered by business process status. For example, you can report on all compensation changes that are in progress or all changes that were terminated or rescinded. The results can then be sorted by type of compensation change, reason, or organization. This report can be copied and modified to meet the requirements.

18. What are Compensation Eligibility Rules?

Answer: – Compensation eligibility rules define who is eligible for compensation components (packages, grades, grade profiles, and plans).

19. Where can we use the compensation eligibility rules?

Answer: –

 We can use the compensation eligibility rules to:

• Assign compensation targets uniquely to different employee populations for bonus, merit, and stock plans, as well as grade profiles.
• Roll out or remove compensation plans (allowance, bonus, commission, merit, stock, and period salary plans) for a target population.

20. What are the fields on the compensation grade?

Answer: – The fields that are available in the compensation grade are as follows:

• Base Pay Elements
• Eligibility Rules
• Currency and Frequency
• Compensation Pay Range Fields
• Compensation Basis

21. What are compensation events?

Answer: – The compensation events can be commenced either as a one single event for an individual worker or as part of another HR change such as a hire or transfer event. When included in a staffing business process, the compensation change task will automatically be sent to the appropriate Inbox to be completed.

22. How many Total Compensation reports are there?

Answer: – In total, there is only 1 Total Compensation report, but there can be dissimilar templates to control what data or information appears. A total compensation template comprises a total compensation rule that recognizes the workers and the total compensation sections that will show when running the total compensation report.

23. How does a bonus pool calculation differ from a merit pool calculation?

Answer: – Like the merit target, the bonus target results from individual target overrides, compensation matrix, bonus plan profile targets, or the bonus plan default target. However, the bonus target uses employee eligible earnings during the period specified by the planned frequency and may also include company and/or modifier scorecards that reflect corporate or division performance.

24. What effect does a compensation package have on compensation defaulting?

Answer: – Compensation packages group together grades, grade profiles, and compensation plans. If an employee is affected by an eligibility rule associated with a compensation package during a staffing transaction, the grades, grade profiles, and compensation plans associated with the compensation package determine compensation defaulting.

25. Why would I want to use default compensation on a position?

Answer: – We want to use default compensation so that every employee who hires into that position gets the same default compensation values.

Default Compensation allows for the establishment of compensation guidelines, plans, and plan amounts on a position. It can be used for these reasons:

• For position budgeting.
• To track actual compensation to budget. That is, to use default compensation as budgeted/approved compensation.
• A need to send target/approved compensation to an external Applicant Tracking System (ATS).
• As an aid in giving concise compensation guidance to those, such as a manager, who is proposing compensation.

26. What is default compensation in Workday?

Answer: – Default Compensation refers to the compensation attributes configured for a position. Workday derives the values that automatically populate fields when filling a position or a job from either the default compensation (if configured for the position) or from eligibility rules.

27. Explain the difference between Default Compensation vs. Assigned Compensation?

Answer: –

Default Compensation: –

• ‘Lives’ on the position
• Can be set prior to hire/fill on positions
• Can be changed at any time on the position without affecting worker compensation.

Assigned Compensation: –

• ‘Lives’ on the worker. Default compensation on the position is the starting point for the assigned compensation.
• It can only be assigned when a worker fills a position
• It can be changed at any point of time without affecting Default Compensation.

 

• Explain about one-time payment plans?

Answer: – A one-time payment plan provides the ability to award an ad-hoc payment to an individual employee. This type of plan could be used for a wide variety of payments such as employee referrals, retention bonuses, and severance payments.

29. Can the merit process run at the same time as the performance review?

Answer: – Yes, but Workday only uses completed reviews for merit processes.

30. What target precedence when an employee matches multiple targets?

Answer: – The merit process and bonus process use this order of precedence to derive targets for each employee:

1. Guaranteed minimum target (for individual employee)
2. Employee’s individual target
3. Compensation matrix target
4. Plan profile target
5. Plan default

Conclusion: –

So, I believe the Interview Question & Answers are helpful for you.

Hey, if you are looking for online training on Workday Compensation, I would suggest CloudFoundation. It provides the best-trained professionals who can guide you through the courses.

All the best and Good Luck.

Thank you.