The end-of-year compensation cycle is here, and for organizations using Workday, recent enhancements offer new opportunities to optimize this critical process.
Compensation remains a focal point for organizations across industries. Pay increases are on the rise, with 2024 projections averaging 4.5% increases, building on the significant jump seen in 2023. While staying competitive in the market is crucial, organizations must also navigate the complexities of pay transparency, compliance, and employee expectations.
One of the best ways to optimize your compensation review process is by taking advantage of functionality made available in Workday’s recent feature releases. Workday’s latest enhancements specifically address key pain points in compensation management, making it easier to:
- Simplify program administration
- Reduce reliance on spreadsheets for exceptions
- Centralize and streamline processes for greater efficiency
To make the most of your compensation cycle and Workday’s latest enhancements, preparation is key. Working on this now will ensure a smooth and successful compensation process.
Four recent Workday enhancements for compensation cycle
Workday has recently introduced a series of powerful updates to streamline and enhance compensation management. These updates require thoughtful setup, thorough testing and sufficient lead time to implement effectively, ensuring they align with your organization’s specific needs. Here they are:
1. Manager control over compensation statement visibility
Previously, compensation statements were only available to employees when awards became effective or on the cycle visibility date, but now managers can release them earlier to aid in their compensation conversations with employees. This enhancement not only improves the employee experience but also empowers managers with greater flexibility and efficiency, making compensation conversations more meaningful and informed.
Benefits:
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- Increases transparency, meeting a key employee demand
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- Simplifies the process, allowing statements to be shared with a click instead of requiring downloads and distribution
2. Custom calculation functionality
Traditionally, nonstandard calculations for awards — whether for bonus or stocks — would require manual calculations in spreadsheets outside of Workday. Now the custom calculation functionality can manage unique calculations directly within the platform, eliminating the potential for formulas outside of the system and the potential for human error.
This functionality is particularly valuable for organizations with complex compensation structures, allowing them to accommodate unique scenarios without stepping outside the system’s secure environment.
Benefits:
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- Reduces the risk of error and compromising data
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- Supports tailored calculations for bonuses, stock awards and base pay increases
- Ensures accuracy and consistency across the system
Payscale “2024 Compensation Best Practices Report,” Accessed November 22, 2024.
3. Grid profiles for targeted views
Grid profiles now allow organizations to customize the compensation review experience for different users. Each grid can be targeted for different users in the compensation review process based on their locale, organization, assigned roles, and other attributes.
For example, a specific award type (e.g. stock) could be only visible to a limited population for planning. By tailoring the grid views to specific needs, organizations can enhance the user experience by customizing the information provided to users.
Benefits:
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- Aligns grid views with user roles and regional requirements
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- Provides managers with only the information they need, reducing complexity
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- Ensures compliance with unique local or organizational requirements
4. Machine learning data entry checks
This brand-new feature uses historical data to provide a validation message when values entered are outside historical amounts. If the data entered is outside of norms, Workday will trigger an ignorable warning informing the user to verify the data entry before proceeding. This feature allows organizations to empower managers to make data-driven compensation decisions.
Benefits:
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- Promotes consistency across managers
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- Reduces the need for manual oversight by senior leaders
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- Enhances data integrity and decision-making processes
Enhancements can save time, simplify administration and increase staff transparency for compensation cycle
Workday’s evolving capabilities offer organizations the ability to simplify their compensation cycle administration and improve the employee and manager experience. By adopting Workday enhancements, this allows administrators to focus on higher value tasks and adapt to a changing market with confidence.
Reach out to your Strada account manager today to integrate these new capabilities and position your team for a successful compensation cycle.
