Compensation Plans Module 5 Callidus Software Inc. All Rights Reserved.

. Module 5: Compensation Plans Confidential & Proprietary Information 5 - 2 Module 5: Compensation Plans Introduction This module covers creating compensation plans using Compensation Management. A Compensation Plan, comprised of Credit, Measurement, Incentive and Deposit rules , determine how Payees are paid. These rules use Rule Elements along with pre-de termined logic to generate payment results. In addition, this module will review the concept of Variable assignment. Variabl es are placeholders that allow a rule to use Territories, Fixed Values, Rate Tab les and Lookup Tables to add flexibility to plan creation. Once the Variables ar e in place, individual Rule Elements will be assigned at the appropriate level t o finish the plan creation. Module Objectives In this module, students will learn to: Understand Compensation Plans Discuss Ru le Functionality Review Variable Assignments Topic Outline Topic 1: Compensation Management Plan Topic 2: Rule Functionality Topic 3: Variable Assignments Callidus Software Inc. All Rights Reserved. Module 5: Compensation Plans Confidential & Proprietary Information 5 - 3 Topic 1: Compensation Management Plans A compensation plan is a shell that includes a collection of rule logic that spe cify which Payees are compensated and how they are compensated. Plans model a company s compensation policies for a group of participants who are occupying positions that have similar requirements. Therefore, Plans are usually associated with specific Titles. Callidus Software Inc. All Rights Reserved. Module 5: Compensation Plans Confidential & Proprietary Information 5 - 4 Topic 2: Rule Functionality A set of rules for a Compensation Plan are defined in order to model a particula r business behavior. Compensation Rules specify how Compensation Management calc ulates Credits, Measurements, Incentives and Deposit amounts for Position Assign ments who are assigned to the Plan when the Calculation is run. The rules within a Plan work sequentially to evaluate and process compensation. Information is p assed from rule to rule (via the Pipeline Calculation), so that each rule has in put data and output data. The input comes into a rule to be evaluated by a condi tion, or manipulated by a formula. The output is generated and may be required f or the next rule to further evaluate and process records. Each compensation plan addresses a different business case. Compensation plans a re most fully understood in the context of the entire range of existing compensa tion plans within a company. The ultimate goal is that compensation plans, when viewed collectively, fully model the incentive compensation requirements for the company.