HR Performance Solutions Knowledge Base

Lump Sum Bonus with Discretionary Matrix

Using this feature will allow you to calculate a lump sum bonus using a matrix. This can be used in combination with the "Utilize Discretionary Matrix" so you can involve your managers in the bonus process and give them the ability to modify a bonus amount for their employees.

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 discretionary 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 will gray out by default when this is selected. Enter a date in the Effective Date for Increases box. To activate the Utilize Discretionary Matrix, check the box at the bottom of the Assumptions screen. Enter a percentage in the Base Merit Increase (Market Rate) field and click Save.

View/Edit the Matrix: Enter the desired figures into the matrix, along with the Additional Discretionary % column. Company Admins and Merit Model-All roles have the ability to set the percentages in the matrix. For merit supervisors who have access to the matrix, it will be read-only.

Assign Merit Supv Access: The Assign Merit Supv access tab provides two functions. The first function is to turn on/turn off access to a specific merit model for a manager in the Merit Supervisor role. The second function is to provide a field to designate a budget amount for that specific merit supervisor.

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 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

Utilizing Lump Sum Bonus with Discretionary Matrix

User Role: Merit Supervisor

Step One - View Matrix: Log in to Compease. For login instructions, contact your Company Admin. Once in the program, click on the Merit Increase Model to view the matrix and familiarize yourself with the bonus parameters.

Step Two - Review Employees: Calculate Employee/Specific Employee will bring you to a screen with access to all your employees. All calculations on this screen will happen automatically when data is entered in the percent or salary box and you press Tab on your keyboard. The various sections on the screen can be collapsed or expanded as desired. When merit supervisors log in, the sections are collapsed by default.

Field names and descriptions in the Merit Adjustment section of the screen are as follows:

  • Max Bonus Potential: Displays the standard bonus increase as calculated based on the assumptions within the model according to the performance level of the employee.
  • Bonus Award %: Merit supervisor enters the desired discretionary percent increase. This figure will override the Original Merit Increase. Once a figure is entered here, press the Tab button on your keyboard and the calculations will run. The new bonus data for the employee can then be viewed by expanding the Increase Information section at the bottom of the screen. Merit supervisors are not allowed to enter an adjusted bonus increase percentage that is higher than the maximum percent (matrix + Additional Discretionary %). If attempted, the user will receive an error message.
  • Reset to Original Bonus Increase %: Use this button if you wish to reset the increase to the original bonus increase that displayed prior to entering a figure in the Bonus Award % field.
  • Discretionary Amount: This field applies to the merit supervisor discretionary budget only. It will display the budget amount allocated to the merit supervisor. It will update as increases are given to direct reports. Green font indicates the amount is equal to or under budget. Red font indicates it is in excess of budget.

When all figures are entered for the employee, click the Save button and proceed to your next direct report.

Step Three - Review Figures: When increase figures have been entered for all your employees, go to the Reports section and run the Annual Compensation Plan Report. This will allow you to see the data you entered and the calculations for all of your direct reports.

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