Compensation Management Phases Overview

The Compensation Management refresh process prepares, updates, and finalizes employee and compensation data in preparation for a new planning cycle. Each phase ensures that the system is accurately configured, historical records are preserved, and all active employees and hierarchies are correctly reflected before planning begins.

This process is divided into three distinct phases that build on one another.

In this article:
Process Summary
Phase 1: Preparation and Archiving
Phase 2: Refreshing Employee Data
Phase 3: Post-Refresh System Updates
Compensation Management Phases Overview – FAQ
Additional Resources

Process Summary

Phase	Focus	Outcome
Preparation and Archiving	Archive and preserve prior cycle data.	Clean foundation for a new cycle.
Refreshing Employee Data	Update employee and hierarchy information.	Accurate, current employee records.
Post-Refresh System Updates	Verify and finalize configurations.	Ready-to-launch compensation environment.

Phase 1: Preparation and Archiving

This phase focuses on ensuring data integrity before any changes are made. Administrators run key reports and archive the prior compensation cycle to preserve historical records. Once all records are captured, the environment is cleared and staged for a clean setup.

Key objectives:

• Generate and store final reports and statements from the previous cycle.
• Archive completed data for historical and audit purposes.
• Prepare the system for and complete data reset.

Go to Preparing & Archiving Data

Phase 2: Refreshing Employee Data

In this phase, administrators update the system with the most current employee information to reflect organizational changes such as new hires, terminations, or manager reassignments. This step can be completed independently but is typically part of the broader compensation management process.

Key objectives:

• Export and format employee data from the HRIS or payroll system.
• Verify file accuracy before uploading to prevent mapping or hierarchy errors.
• Refresh employee records and confirm reporting relationships.

Go to Refreshing Employee Data

Phase 3: Post-Refresh System Updates

The final phase ensures the refreshed data is reflected accurately throughout the system and that the environment is ready for planning. Administrators confirm hierarchies, update business rules, and configure access for managers.

Key objectives:

• Verify hierarchy accuracy and reporting alignment.
• Review and update business rules, comparison dates, and eligibility settings.
• Recalculate system values and open the cycle for manager access.

Go to Post-Refresh System Updates

Compensation Management Phases Overview – FAQ

What is the Compensation Management process?

A three-phase workflow that prepares, refreshes, and finalizes employee and configuration data to ensure each compensation planning cycle starts with clean, verified, and accurate information.

When should the process be performed?

Prior to launching each new compensation planning cycle, typically on an annual or mid-year basis. It can also be run mid-cycle if significant organizational changes occur that affect hierarchy or eligibility.

Do the phases need to be completed in order?

Yes. The phases should be completed sequentially—Preparation and Archiving, then Refreshing Employee Data, followed by Post-Refresh System Updates. The Refresh phase can be run independently if you only need to update employee or hierarchy data.

What is the outcome of completing all three phases?

A ready-to-launch compensation environment with accurate employee records, verified reporting hierarchies, updated business rules, and preserved historical data for reference and audit.

Additional Resources

Compensation Management Getting Started
Compensation Management Overview
Compensation Management: Phase 1 - Preparing & Archiving Data
Compensation Management: Phase 2 - Refreshing Employee Data
Compensation Management: Phase 3 - Post-Refresh System Updates