11 grades

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Grades

Oracle Fusion

Human Capital Management


Work Structures

Grades & Grade with Steps

Create grades to record the level of compensation for

workers

You can create grades for multiple pay components,

such as salary, bonus, and overtime rates

Grade steps are distinct increments of progression

within a grade. You can set up grades with or without

grade steps


Work Structures

Grades

You assign each grade to a set. If you assign a grade to the common set, then the grade is available for use in all

business units. To limit a grade to a single business unit, you can assign it to a set that is specific to that business unit.

You can define one or more grades that are applicable for each job and position. This list of valid grades, combined with

the settings for two profile options, enables you to restrict the grades that can be selected when you set up

assignments or employment terms for a worker.

If you use positions, then the grades that you assign to jobs are the default grades for the positions that you associate

with each job. You can use the default grades for the position, remove ones that don't apply, or add new ones

PER_ENFORCE_VALID_GRADES : If you set this site-level profile option to Yes, then users can select a grade only

from the list that you defined for the job or position. If valid grades are defined for neither the job nor the position, then

users can select from all grades. If you set this profile option to No, which is the default value, then users can select

from all grades.

PER_DEFAULT_GRADE_FROM_JOB_POSITION : If you set this site-level profile option to Yes, and there is only one

valid grade for a job or position, then that grade is used by default in the assignment or employment terms. If you set

this profile option to No, which is the default value, then users can select from all grades.


Grades

Grade Rates

Grade rate values are the compensation amounts associated with each grade. Grade rate values can be

either a fixed amount or a range of values, and you can set up rates for different types of pay, such as salary,

overtime, and bonuses.

Grade rates for some jobs or positions might include an hourly salary rate and an overtime rate. Grade rates

for other jobs or positions might contain a salary rate type with a range of amounts and a bonus rate type with

a fixed amount. Grade rates typically serve only as a guideline to validate that the salary you propose during

the compensation process for a worker on a certain grade is appropriate for that grade.

GRADE_PAY_RATE_TYPE lookup type identifies the compensation components for which you want to set up

grade rates. The predefined values are salary, bonus, and overtime.

For grades that were created without steps, two options for adding rates are available:

Add the rates at the same time as when you add the grade using the Manage Grades task

Add the rates separately using the Manage Grade Rates task

For grades that were created with steps, you must first add the grade to a grade ladder, and then add the

rates for each step


Grades

Grade Rates - Examples


Grades

Grade Rates - Examples

Sets enable you to share grades that are common across

business units in your enterprise

Grade rate values are associated with each component of

compensation for your workers. While grades may be

common across different areas of your enterprise, grade

rates vary among the countries in which you employ

people. For example, if your enterprise has engineer jobs in

the United States, the United Kingdom, and Australia, you

can set up grades for a set that is shared between the

countries, but set up different grade rates for each country

in the applicable currency.

So assign grades to sets, and assign grade rates to

legislative data groups.

Salaries are validated using the grade rates and a warning

is issued that the new salary is outside his salary range.

Payroll elements reference grades in the eligibility criteria.


Grades

Grade and Grade Rates - Demo


Grades

Grade Ladders

Create grade ladders to group grades or grades with steps in the sequence in which your workers typically progress

You can set up separate grade ladders for different types of jobs or positions in your enterprise. For example, you may

create three grade ladders for your enterprise: one for technical grades, another for management grades, and a third

for administrative grades.

Two types of grade ladders are available:

Ladders with grades

Ladders with steps

You cannot create a grade ladder with a combination of both grades and grades with steps.


Grades

Grade Ladders - Types

Ladders with Grades

You create ladders with grades by building a hierarchy of grades that were created without steps. When you set up

this type of ladder, only grades without steps are available to add to the ladder. You do not define any grade rates

when you set up a ladder with grades; the rates for the grades within the ladder are inherited from the rates that

were added when you set up the grades. To add or edit rates for grades, you must use the Manage Grade Rates

task.

Ladders with Steps

You create ladders with grade steps using grades that were created with steps. When you set up this type of

ladder, only grades with steps are available to add to the ladder. You define step rates and the values for each

step when you set up the ladder, and the rates are unique to each ladder. You cannot share step rates between

grade ladders.


Grades

Grade Ladders - Examples

Grade Ladder using Grades with Steps:

To set up a grade structure to reflect this table, perform the following

tasks:

Set up three different grades and add three steps for each grade.

Set up a grade ladder using the Grades with Steps type, and select all

three grades

Set up step rates for annual salary amounts using the rates in the

table

Grade Ladder using Grades:

To set up your grade structure to reflect this table, perform the

following tasks:

Set up eight separate grades.

For each grade, enter the rates from the preceding table.

Set up a grade ladder with the Grades type and add all eight

grades to the ladder


Grades What’s Changed?

Compared to PeopleSoft:

Grades exist independently of salary plans

You can create multiple rates for each grade and therefore define multiple values or ranges for the same grade

Use grade ladders to sequence grades (can be grades with or without steps)

Compared to EBS:

Simplified set up of grades

Grade ladders available in Global HR with the ability to enter all step rate values directly on one page

Grades are set enabled in Fusion


Grades

Grade Ladders - Demo


Grades

Profile Options - Demo

PER_DEFAULT_GRADE_FROM_JOB_POSITION

PER_ENFORCE_VALID_GRADES


Grades

Grades - Activities

11 grades

Technology