Salary Administration and Performance Reviews
In Oracle HRMS you use salary administration to:
- enter salary amounts or wage rates for newly hired employees.
- enter and approve proposals for salary or wage increases (or decreases) for current employees. You can associate a salary change with the result of a performance review
To administer salaries for employees, you first assign them to a salary basis. This determines the duration for which their salaries are quoted, such as hourly or monthly. Then for new employees, you enter starting salary amounts, which receive approval automatically.
For current employees, you enter proposed salary changes, expressed either as a new amount or a change amount or percentage. If necessary, you can break down a salary change into two or more components, to reflect different reasons for the change. For example, you might define components for Cost of Living and Merit. You can approve each component of the proposal separately. When all components are approved, you can approve the proposal as a whole. Proposals do not take effect until they receive approval.
Optionally, you can select a performance review to associate with a salary change. When you set up salary administration, you can enter grade rate ranges against which the system validates salary proposals.
Salaries Determined by Grade
If your employees' salaries are entirely determined by their grade, you may not need to use Salary Administration. For these employees you define a grade rate or pay scale rate and enter values for each grade. Then you can assign employees to grades, and place them on the appropriate point of their grade scale. If you use Oracle Payroll, you can write a salary formula that uses the grade rate or pay scale rate to calculate each employee's salary pay value.
See Also
Grade Relationships to Compensation and Benefits
Setting Up Salary Administration
Entering Salaries and Salary Changes
Reviewing Current Salaries
