Glossary of Terms

Insurance coverage based on multiples of salary, for example, 1x, 2x, 3x, 4x, 5x, or 6x salary.

Establishes the criteria for how compensation components default to worker compensation during staffing transactions (hire, promote, demote, transfer). Compensation defaulting rules ease data entry by automatically defaulting compensation components (packages, grades, grade profiles, and plans) to worker compensation for employees who meet the rule's eligibility requirements.

A sequence of one or more tasks related to defining, targeting, and awarding stock grants to employees. In this process, a compensation administrator creates the stock plan definition. The administrator or manager assigns the stock plan to employees through one of various means. Assignment of the plan determines eligibility for the stock event. The administrator sets up the stock process, which funds the stock pool, and then launches the process on the specified event date. Workday creates stock events for employees based on their organization. Managers review the target amounts for their employees and submit proposals for review. Once approved, the employees receive their stock grants.

A type of benefit plan where employees make contributions to 401k and 403b accounts. You can establish defined contribution plans and add these plans to benefits programs. Your employees can make or change defined contribution elections at any time, and those changes are sent to payroll for the periods in which the elections are effective.

Used in China, a hukou is a type of residency permit used to grant eligibility and rights. Workers with a local hukou are entitled to the full spectrum of social rights and welfare benefits. Without a local hukou, workers can hold only a temporary residency certificate. Temporary residence certificate holders are referred to as non-locals.

The compensation components that will be included in the calculation of base pay for the purposes of determining the compa-ratio and target penetration. For example, you can choose to include both base pay and bonuses in the base pay for purposes of determining the compa-ratio.

A type of enrollment event; the other is a benefit event. This event controls the benefits open enrollment process. Unlike benefit event enrollment, which is triggered by an event in a specific employee's life or work, an open enrollment event applies to an entire, chosen employee population.

The smallest unit of compensation for a worker in a specific position. Workday uses compensation elements to determine the amount, currency, frequency, and other attributes of a worker’s compensation. Compensation elements are linked to compensation plans. For example, Base Pay, Car Allowance, and Commission can be mapped to any compensation plan, but not to merit plans. Payroll earning codes linked to a compensation element allow Workday Payroll and Payroll Interface to include the applicable compensation in payroll. A Compensation Element Group is a collection of compensation elements. For example, the group Standard Base Pay can be comprised of multiple compensation elements. Compensation elements do not need to be grouped, and groups are optional.

Any compensation paid in addition to an employee's regular wages that includes, but is not limited to, severance or dismissal pay, vacation pay, back pay, bonuses, moving expenses, overtime, taxable fringe benefits, and commissions. In Workday, only supplemental earnings can be grossed-up.

Specify one or more criteria that categorizes workers into a group that is used to qualify them for participation in an HRrelated task. For example: Benefit Plan, Compensation Plan, Employee Review.

Either an individual target assigned to a worker in worker compensation (different from the plan target) or the target for each employee calculated by Workday during the bonus or merit process, based on configuration options.

A type of benefits coverage. For example, you can define Medical, Dental, Vision, Group Term Life, Long Term Disability, and Short Term Disability benefit coverage types. Each type can contain one or more specific benefit plans. You can set rules for benefit elections at the benefit coverage type level. For example, you can restrict an employee to selecting only one plan of a specific coverage type. You can also specify which coverage types are available for employee election during which benefit events.

An organization refers to a grouping used to organize people, resources, workers, and other organizations. Organizations provide management, visibility into, and reporting (roll-up) structures for resource allocation. Organizations can be defined for application uses like defining departmental hierarchies, project teams, etc. They can also be used to define cost centers and geographic or regional reporting structures.

Defines the bonus,merit and stock increase range based on employees' overall performance rating, retention rating, eligibility rule, or their salary range quartile. You can use a compensation matrix to generate a bonus,merit or stock pool, giving you the basic cost forecasting necessary to pay for performance (bottom-up budgeting), or you can use the compensation matrix as reference guidelines only but have a separate pools (top-down budgeting).

Defines the rules that apply to a specific type of time off. Identifies the time off type, whether adjustments are allowed, and validation rules that prevent users from entering invalid requests. Can also define eligibility rules and limits that differ from the time off plan.

A user-defined type that you assign to each employee when the employee is hired. For the most part this designation is informational only; you can search or filter employees by their employee type. However, you can designate a type as Fixed Term Employees, and employees of that type have fixed end dates of employment.

A single leave of absence taken as separate blocks of time. To facilitate tracking, you can coordinate time offs with leaves of absence. Validation rules and supporting data for coordinated leaves and time offs can reference combined balances. For example, eligibility and validation rules can check to see if an employee has a sufficient balance across coordinated leave types and time offs to take all days in a leave of absence or time off request.

Identifies the benefit plans, coverage targets, and coverage amounts that employees receive by default when they do not complete an enrollment event.

An event in the employee's life that gives the employee the opportunity to change benefit elections. These include staffing changes (for example, getting hired or promoted) but also "life events," for example, getting married or having a new child.

Events that result from the passage of time rather than from a specific change to employee data. For example, you can set up a passive event to track and manage benefit eligibility for employees who reach the age of 65 (retirement age). Based on the event rules, Workday automatically searches for employees turning 65 and generates an enrollment event to record any benefit gains or losses.

A grouping of compensation guidelines (grades, grade profiles, and their associated steps) and plans that you can assign to workers as a set. Packages provide a quick view the eligible plans for a particular job or group of employees.

Defines rules for entering and tracking one or more related time offs. Identifies the unit of time (hours or days), eligibility requirements, whether to track balances, and if time offs are position-based or worker-based. Time off plans that track balances also specify the balance period (plan year), accruals that add to the plan balance, carryover limits, and other balance tracking rules.

Any event that results in a gain or loss of benefits coverage. This encompasses both open enrollment and benefit events, such as a new hire, a termination, the birth of a child, and a job change. For each event, you must specify the benefit plans and elections that become available or are lost to employees as the result of that event. For example, you can make medical, dental, basic life, supplemental life, and visions plans available to new hires; by contrast, for the birth of a child, you might make only basic life, supplemental life, and medical coverage available to affected employees.

The collection of user-defined job family groups, which each contain job families, which each contain job families, available for use in hiring and other staffing transactions.

These rules specify coverage increase limits, EOI requirements, waiting periods, and other rules and conditions of enrollment for benefits enrollment events.

A process by which an employee receives formal feedback on their performance in a given period of time. This includes a performance evaluation.

A component of pay that you use to assign monetary amounts to a worker's pay. For example, a salary, an allowance, or a bonus. Some compensation plans, for example, a commission, are discretionary. You are not paid from these compensation plans in every paycheck. By contrast, other plans, like a salary plan, are included in every paycheck.

Names a type of time off users can request, such as Sick Time or Vacation. This is the name users see when entering a time off request. A time off type can be associated with more than one time off.

Defines coverage start and end dates, waiting periods, coverage increase limits, Evidence of Insurability requirements, and other coverage rules and conditions. This ensures that the benefits process presents only the options for which each employee is eligible based on the event type. Defined at the benefit group, enrollment event, and benefit type levels.

Attached to a job profile, user-defined job categories allow you to track additional job information. You can define any job category that fits your business, for example, whether specific workers, jobs, or positions are "Direct Labor" or "Indirect Labor." The job category is displayed on the position—based on that position's job profile's job category—which facilitates reporting at the position level.