Glossary of Terms

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

Enables you to track which employees are considered company insiders for reasons of stock purchasing. You can track company insider status on job profiles and, by extension, each worker with that job profile.

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.

See Intermittent Leave.

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.

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

Lists and weights each criterion used to evaluate company performance. You can use scorecards to track company performance as standalone information or to influence funding up-front for a particular bonus plan.

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.

Political entities (such as states, provinces, cities, or other legislative entities) where specific laws and regulations require companies to track and report on unique kinds of worker and job information.

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 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.

A user-defined grouping of compensation components; such as the sum of salary, allowance, commission, bonus, future payment, stock and retirement savings plans. Workday enables you to specify which compensation plans should be included in the compensation basis calculation. This calculation can be used to view employee compensation in Workday and in the bonus process to provide target pools and individual target amounts.

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.

Defines whether a specific health care plan or insurance plan can be used by only the employee or also by the employee's dependents, entire family, spouse, and so on.

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.

Defines how much time off employees can accrue, the timing of the accrual, and other rules. Can define eligibility rules, a frequency, and limits that differ from the time off plan.

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.

The umbrella term for compensation packages, grades, grade profiles, and plans.

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.

Limits the coverage options available to workers during an enrollment event based on their choice of other benefit plans and coverage amounts. For example, you can limit coverage in a specific plan to a percentage of the total coverage in one or more other benefit plans.

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.

The multiplier, which you set, used to calculate an annual amount of compensation for compensation plans. Each compensation plan has a frequency of payment, and each frequency has an annualization factor.

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

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.

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.

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.

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.

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.

Defines the accrual frequency for a time off plan, such as annual or monthly (unless the plan has a custom frequency), and the start and end date of each reporting period. The period controls reporting of both accruals and time off requests.