HR Performance Solutions Knowledge Base

Lump Sum Bonus

Using this feature will allow you to be able to calculate a lump sum bonus using a matrix.

Merit Increase Planning

Create, Copy or Select Merit Model: Create, Copy, or Select the merit model on which you would like to utilize the lump sum bonus feature. Refer to the Knowledgebase article "Select Merit Model" for instructions on selecting and adding merit models. Be sure the descriptive name of the merit model references that it is a lump sum bonus model to differentiate it from your regular models.

Utilize Lump Sum Bonus: Activate the Lump Sum Bonus feature on the Assumptions page for the model you are working with. This is done by checking the Utilize Lump Sum Bonus checkbox. This will turn on the Lump Sum Bonus feature for the selected merit model. Certain fields (Lump Sum Concept Applies, Merit increase on Anniversary Date, Adjust Merit Increase and Limit Merit Increase to Grade Maximum) will gray out by default when this is selected. Enter a date in the Effective Date for Increases box. Enter a percentage in the Base Merit Increase (Market Rate), Performance Level and/or Position in Range field and click Save.

View/Edit the Matrix: Enter the desired figures into the matrix. Company Admins and Merit Model-All roles have the ability to set the percentages in the matrix.

Copy Employees from Structured Comp and Apply the Matrix: After the matrix is complete, the next step is to copy the employees from structured compensation into that merit model. Then calculate increase for all employees to apply the figures/percentages in the merit model to your employees.

Review Reports: Run the Annual Compensation Plan report to view all of the employees with their lump sum bonus amounts.

Update Structured Compensation: By selecting the Update Structured Compensation feature, this sends the new lump sum amounts for each employee into the bonus field in Structured Compensation.

Search Knowledgebase articles on the following topics to supplement this information:  

Merit Increase Matrix

User Security

Was this article helpful?