Compensation Types

How to create and manage various compensation types in Simployer One

Compensation types

In Simployer One you can create three types of compensation: 

1. Base Compensation

   • recurring salary/compensation that an employee receives

   • an employee can only have one effective base compensation at a time

2. Additional Compensation

   • recurring compensation that an employee receives in addition to the salary

   • an employee can have multiple effective additional compensations at a time

3. Bonus Compensation

   • one-time payments such as bonuses, performance rewards, etc. 

   • an employee can have multiple effective additional compensations at a time

Depending on the compensation package of an employee you will see one, two or three cards in the compensation section. Whether a compensation will be shown in the profile depends on whether a compensation is active or inactive: 

Active

• We show the most recent compensations on the profile: one card for each compensation type. If an employee has multiple Bonus or Additional compensations you will see the indicator of total active compensations which you can reach by clicking "show all" - being guided to the compensation overview.

   

  • Base: current salary is active until a new base takes effect 

  • Bonus: active until the set 'payout date' 

  • Additional: active until the set 'end date'

Inactive

• If a compensation has passed the payout date or end date the compensation will disappear from the profile and will only show in the compensation overview.

Compensation Overview

The Compensation overview collects the whole compensation package linked to an employee. Here you can see all past, current and future compensations, divided by type, at one glance. 

Create compensation types

You can add a new compensation both via the profile or compensation overview page.

Salaries are typically reviewed annually, but if there are exceptions, you can use "Salary year" in Simployer One to specify the year when an employee's salary should next be reviewed. 

• Examples: 

  • An employee on a 3-year study leave of absence had their last salary review in 2023. Since they are not eligible for review in 2024, 2025, and 2026, you would set the salary year to 2027 in Simployer One.

  • Another employee received a manual salary adjustment in early 2024, so they should not be part of this year's salary review. Instead, you would set the salary year to 2025, indicating that the current salary remains in effect until then before being considered for review again. 

Salary codes might be helpful for export purposes to  payroll, if you need to link a compensation to a specific salary type or code. 

 

The bonus compensation is a one-time payment and therefore is required to have a payout date.

Export and report options