Managing Individual Compensation Distributions (ICD) with ...

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Managing IndividualCompensation Distributions(ICD) with Oracle SelfService HR v. R12

©2022 Jade Global Inc. All rights reserved

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Introduction

Executive Summary

Oracle Individual Compensation Distribution (ICD) Overview

Implementing ICD

ICD Challenges

Assigning Awards Using ICD

Benefits

Lessons Learned

Conclusion

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Table of Contents

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Introduction


With functional and semi-technical skills, Timothy has been implementing Oracle HRMS solutions for the past ten years and in the previous 19 years has had various

technical positions in government and aerospace industries. Among his Oracle expertise includes methodologies that were used, including Oracle AIM, AIM Fast forward

ORACLE Applications: Oracle Human Resources Management System, and Oracle Training Administration. SQL*Plus. Discoverer Administration and Reporting. Timothy is an

innovative professional with proven ability to identify, analyze and solve problems to increase customer satisfaction and control costs. He has bachelor’s degree in Business

Administration with concentration in Management Information Systems. Having played both user role as well as implementer role, Timothy can easily understand and

identify business issues, strategies, and priorities. He has been functional lead on numerous Oracle projects at top companies such as VMWare, Adobe Systems and similar.

Timothy can be reached at [email protected], 408-899-7245.

Please send any feedback on this paper to [email protected]. Neither Timothy Walsh nor Jade Global, Inc. warrants that this document is without error. This

document cannot be reproduced without expressed written consent from an officer of Jade Global, Inc., except Collaborate 2011 may make copies and make this paper

available as needed for the conference and proceedings.

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Managing Individual Compensation Distributions (ICD)

with Oracle Self Service HR v. R12

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Executive Summary

©2022 Jade Global Inc. All rights reserved2

Leveraging Oracle HRMS Self Service ICD v.R12 gives managers throughout your enterprise the authority and ability to assign one-time or recurring awards, bonuses, and

allowances to qualified employees such as periodic or spot bonuses, sponsored allowances, resettlement compensation, severance payments, and company cars. Our

session will include an ICD Overview, Bonus Plan Design, Enrollment Requirements, Setting up Activity Rates and Coverage for the ICD Plan, and Assigning Awards Using

ICD.

Optimizing Contract Renewals with

Oracle Service Contracts

Managing Individual Compensation Distributions (ICD) with Oracle Self Service v. R12.

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Oracle IndividualCompensation Distribution(ICD) Overview




Oracle Individual Compensation Distribution (ICD) provides managers with ability to assign one-time or recurring awards, bonuses, and allowances using SSHR. The setup of

ICD uses elements, which allow distribution through payroll, and the use of FastFormulas for calculations for maximum distribution amounts and/or commission calculations.

Security features ensure managers can distribute only to persons within their security profile and/or eligibility profiles. Company branding is done through personalization.

Finally, as a standard feature of Oracle Self Service HR, ICD is fully compliant with SOX for workflow approval processes.

Using ICD you can give managers the ability to assign one-time or recurring awards such as Periodic or Spot Bonuses, Commissions, Stock option grants, Service Awards,

Sponsored allowances, Resettlement compensation and Severance Payments. Examples of other periodic or recurring awards include allowances for special training or a

reward for patent filings.

What you can do with ICD:

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Implementing ICD




As with other forms of plan design within Oracle HRMS, you must take into account the end results required while planning your ICD setups. Some of the common questions

you should be asking yourself are listed below.

Planning your Compensation

Local or Global in design?

Is the award localized to a country or business unit or available to everyone in the organization.

Who is eligible? (Eligibility Criteria)

An eligibility criterion helps managers from making costly mistakes in awards by filtering their options in SSHR forms.

What is the periods/frequency for each?

Monetary awards are often driven by payroll periods. Other awards may be continuously recurring or happen once in an employee’s employment.

What currency, functional or local?

Type of reward and other business factors will determine what to use but general rule of thumb is to use local currency for any monetary awards.

What are the limits, minimum/maximums?

Planning for limits, minimums and maximums will improve manager data entry validation and reduce errors.

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Differences in Oracle R12 version also may dictate how you design your ICD plans. For example in version 12.0.x compensation types are show as radio buttons which

should deter you from creating multiple variations of the same type of award. See figure #1.

Figure 1 ‐ R12.0.x Select Compensation Type

R12 Version Differences:

What are the approvals required? Is there a single rule or one for each type of ICD award? Remember that routing outside of an employee’s managerial hierarchy requires using advanced tools such

as AME.

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In version R12.1.x and later, the selection of compensation type has been changed to dropdown lists making more sophisticated plan designs possible. A single

compensation type may now have multiple options. The manager’s self-service experience and navigation is also improved.

Figure 2 ‐ R12.1.x Select Compensation Type

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ICD plan creation will follow the same steps as other types of plans such as benefit and compensation workbench type plans.

The building blocks are laid down in this order:

Setup Building Blocks

Define elements to hold each distribution

Define eligibility profiles

Define plan types

Define the plans

Define plan enrollment requirements

Define standard rates / historical rates

Enable SSHR menus / personalization's

Use AME for approvals

a. Setting workflow options for a) no approvals, b) regular approvals, or c) dynamic approvals

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ICD Challenges




Some of the challenges you’ll face when setting up ICD plans:

Defining Approval Rules for each Plan

Managing unrestricted Life Events

No out of box reports

Procedure for closing unrestricted Life Events in different environments (with standard benefits, with Advanced Benefits, without either).

Managing unrestricted Life Events – recurring elements will have unrestricted life events in started status and these can cause issues with CWB and OAB open cycles

and plan upgrades and personalization's.

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Assigning awards using ICD is illustrated below.

Assigning Awards Using ICD

Through MSS, Select

Employee to Compensate

Select the

Compensation Plan

Enter Awards and

Effective Date

Review History (Optional)

Review and Submit for

Approvals

Approvers: Review and

Approve or RejectOn Approval Posted

of Database

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ICD Benefits




Individual Compensation Distribution benefits are achieved by Distributing compensation management to line managers, providing managers with better visibility into how

their employees are compensated and enabling better management/controls over approval processes. Additionally, ICD can support a more paperless environment thus

avoiding PAN processes. ICD is also directly integrated with Oracle Payroll and the data is available for reporting, budgeting, costing.

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Lessons Learned




We would like to provide significant recommendations on key information to help make your Oracle HRMS implementation of ICD a success.

If ICD life event is active during CWB open period then CWB plan will fail to close. (11i issue)

For plan design or eligibility changes to take effect you must close all unrestricted life events with a status of started

Use plan design copy feature if you’re defining multiple ICD plans

Use plan export/import feature to migrate plans between instances

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Conclusion




Deployment of Oracle’s Individual Compensation Distribution solution enables an organization to efficiently manage individual compensation and more, reducing or

eliminating errors from manual processing, significant time and labor savings, all from applications that are built on unified information architecture. This information

architecture provides you with a single definition of their employees, suppliers, and products, and all aspects of their business. All of this is done within a secure

environment with a configurable notifications and approvals workflow.

Overall it will improve your ability to allocate compensation in accordance with enterprise, department and personal philosophies using rules-based modeling, scenarios and

analytics. Time will be reduced from the start of processing, down to awarding and distribution, and improved overall retention.

About Jade Global


Jade Global is a Cloud-focused IT services partner specialized in enterprise business application implementations, integrations, software product engineering,

consulting, technology advisory, testing, and managed services. Jade is an Oracle Platinum Cloud Select Partner, Salesforce Silver Partner, Dell Boomi Select

Implementation Partner, and Service Now Silver Partner. Our additional global alliances with NetSuite, Microsoft and Zuora allow us to design robust solutions for

a variety of industries and needs. We are headquartered in San Jose, California with East Coast headquarters in Philadelphia. Jade has been recognized as one

of the fastest-growing companies in North America by Inc. 5000 for 9 consecutive years.

www.jadeglobal.com [email protected]

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