This document provides an overview and demonstration of Individual Compensation Distribution (ICD) functionality in Oracle HCM Cloud. ICD allows managers and other key employees to distribute bonuses, awards, and other compensation to employees using self-service. The presentation covers manager-initiated and employee-initiated ICD plans, key features of ICD including eligibility profiles and approval workflows, and new enhancements in the latest Oracle HCM Cloud release.

1. Individual Compensation Distribution:
Automated Spot Bonus & Spot Award
Administration and Other Creative Uses
Jeff Eaton
Practice Manager, Compensation & Benefits
1 © 2009 KBACE Technologies, Inc.

2. Agenda
• ICD – An Overview
• Manager Initiated ICD Plans
• ICD Plans for Employees
• Demo of ICD
• Enhanced ICD – New Features for Rel 12.1
• Q&A
2 © 2009 KBACE Technologies, Inc.

3. Individual Compensation Distributions (ICD)
• ICD allows managers and other key employees responsible for
awarding compensation within an enterprise to use Self Service for
distributing awards to qualified employees
• ICD is included with your HR and
Self Service HR license
3 © 2009 KBACE Technologies, Inc.

4. Key Features
• ICD plans allows managers to assign various types of compensation
distributions to employees
• ICD can be used for both one-time and recurring awards, such as
bonuses or allowances to employees
• Seeded approval process sends a notification to the supervisor of the
manager who initiated the transaction
• ICD plans can be setup to handle a variety of business needs such as
• Periodic or spot bonuses, Sponsored allowances, Severance Payments
(Termination with Compensation), Relocation, Sign-on bonus, Other
periodic or recurring awards
4 © 2009 KBACE Technologies, Inc.

5. Manager Initiated ICD Plans
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6. Navigation
Custom Function
for Spot Bonus
and Awards ICD
• A function can be linked to one or more plan types
• Creating plans under different plan types allows for greater access
control
• Useful for ICD plans linked to Termination with Compensation
function, as managers may not have access to all of them
• Create a second function which includes all plan types and link that
to HR responsibility
6 © 2009 KBACE Technologies, Inc.

7. Employee Selection
• Managers can pick an employee within his/her hierarchy
• Search function, if enabled allows manager to search for an
employee within his/her security group
• Eligibility profiles can be attached to the ICD plan to restrict award
distribution
• Note that employees will still show up in this screen even if they are not
eligible, but the manager will not be able to allocate awards to such
employees
7 © 2009 KBACE Technologies, Inc.

8. Plan Selection
• Frequency will be Once or Recurring – driven by the
element/standard rate setup
• Display help text and tips using Communication types and Framework
personalizations
• Status will be blank if the employee has never received the award in
the past
• Use view history to view details of past awards
8 © 2009 KBACE Technologies, Inc.

9. View History Page
• If configured, view history will show details of prior awards
• To enable ‘View History’ functionality, configure a standard rate with
the activity type “Additional History Elements”
• Calculation method - “No Standard Values Used”
• Use Compensation category in standard rates to group similar awards
• Note that the Element name (NOT the plan name) will be displayed in the
view history screen. Consider this while naming your elements.
• Hide unused categories from the view history page using framework
personalization
9 © 2009 KBACE Technologies, Inc.

10. Award Allocation Page
10 © 2009 KBACE Technologies, Inc.

11. Award Allocation Page: Key Points
• Use communication types to display help text , policies, and
guidelines
• Can have different text for each plan
• Use framework personalization to change labels, show/hide fields
• Use the rate start date code - “Enterable” so that managers can input
the effective date of the reward
• Variable rate profiles can be used to enforce variable limits based on
employee’s indicative/employment data
11 © 2009 KBACE Technologies, Inc.

12. Award Allocation Page: Key Points
• Define coverage calculation if you need an additional field to capture
award details
• An extra input rule can be used if additional values need to be
calculated and assigned to input values
• Post election edit rule can be used to enforce additional plan rules
• Note that text entered in justification is part of the work flow for that
single transaction and is not stored anywhere
12 © 2009 KBACE Technologies, Inc.

13. Review Page
• Text can be added to the review page using communication types
• Can have different text for each plan
13 © 2009 KBACE Technologies, Inc.

14. Confirmation Page
• Seeded workflow notification goes to the submitting manager’s
supervisor
• Each plan can have its own approval process
• Once submitted for approval, the approver gets a notification
• Element Entries are created only after approval
14 © 2009 KBACE Technologies, Inc.

15. Approval Notification
• Approval notification - Supervisor can Approve, Reject or send it back
requesting more information
15 © 2009 KBACE Technologies, Inc.

16. Element Entry
• Element Entry will be created for the pay period which includes the
award effective date entered by the manager
16 © 2009 KBACE Technologies, Inc.

17. Additional Examples
• Spot Bonus Plan - for rewarding achievements that deserve special
recognition
• Element entry is created with the final approval
• Entry gets processed with the next payroll and employee gets the pay
out
17 © 2009 KBACE Technologies, Inc.

18. ICD for Employees
18 © 2009 KBACE Technologies, Inc.

19. ICD for Employees
• ICD plans can be setup for employees to self-enroll in benefits which
do not need a qualifying life event
• ESPP, Commuter Plan, Parking Plan, etc.
• Refer to metalink note # 335777.1 for step by step instructions on
how to setup function for Employee Self Service
• Using ICD allows you to take the plan(s) outside the main benefit
function
• This leads to simpler benefits design as your main benefit program
has only those plans which follow the general health and welfare
rules
19 © 2009 KBACE Technologies, Inc.

20. Navigation
Custom ICD
function for ESPP
• Function allows employees to access the plan directly from the
main navigator
20 © 2009 KBACE Technologies, Inc.

21. Plan Selection & Enrollment Pages for ESPP
Plan Selection
Page
Enrollment
Page
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22. Additional Example - Commuter Plan
22 © 2009 KBACE Technologies, Inc.

23. Demo of ICD
23 © 2009 KBACE Technologies, Inc.

24. Enhanced ICD – New Features for Rel 12.1
24 © 2009 KBACE Technologies, Inc.

25. New Features for Managers
• Enter directly to multiple input values associated with an
element linked to a compensation plan
• Award multiple compensations of same or different type to
an employee within a single transaction on same or
different dates
• Update and delete active and future compensations
• Example - change the amount/dates or delete the award
• Indicate a distribution end date for a recurring
compensation within the same transaction it is awarded
• Example – A lump sum amount for a certain period
25 © 2009 KBACE Technologies, Inc.

26. New Features for Administrators
• Configure validation on input values based on Value Sets, Data
Types, Minimum, Maximum & Default, Lookups, and Fast
Formula
• Configure element entry flexfields to capture compensation
related information for an employee
• Justification for the compensation can now be configured as a flexfield,
captured during the transaction and stored as part of the employee element
entries
• Default input values as a fixed value or using a fast formula
• Search employees and update or delete awards
• Configure action items for compensation plans. This will put
compensation on hold for a person, until the action item is
provided
26 © 2009 KBACE Technologies, Inc.

27. Questions & Answers
Speaker:
Jeff Eaton
Email: jeaton@kbace.com
Phone: 603-566-5767
Recording & Presentation:
http://kbace.com/index.php/events/
webinars/online-archives
27 © 2009 KBACE Technologies, Inc.