Compensation Reason

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Compensation reasons are used to explain why an employee's pay rate is changing. These reasons appear when making updates to compensation records, ensuring consistent documentation for audits and reporting. You can use compensation reasons when updating pay rates in an employee's profile or during bulk compensation adjustments.

To manage compensation reasons:

  1. Go to Global Settings > HR Data Management > Compensation Reason

  2. Review the existing list. Common examples include:

    • Promotion

    • Annual Review

    • Performance Review

    • Cost of Living Adj.

    • New Hire

    • Demotion

  3. To add a new reason, click + Add in the bottom-right corner.

  4. Enter the Name of the new reason.

  5. Click Save.