Workday Workday-Pro-Compensation - WorkdayProCompensationExam

Acompensation elementin Workday is the foundational link between acompensation plan(e.g., salary, bonus, allowance) andpayroll processing.

When you assign a compensation plan (like a car allowance, bonus, or salary plan), Workday requires acompensation elementthat directly maps to apayroll earning code.

This ensures that the pay component flows into payroll correctly, appears on pay slips, and is taxable/deductible as designed.

Why not the others?

B. Requisition compensation– Job requisitions use compensation packages for recruiting, but elements are not tied to requisitions.

C. Eligibility rules– Eligibility determineswhocan receive the plan, not the element itself.

D. Benefit deductions– Those are handled bybenefit deduction elements, not compensation elements.

By default, if compensation defaults from the requisition, Workday mayskip eligibility re-checks.

To ensure eligibility rules arealways executedduring the Offer process (especially if location, job family, or country changes), enable:

Run Eligibility Rules when there is Requisition CompensationinEdit Tenant Setup – HCM.

Why not the others?

B. Enable Defaulting Based on Guidelines→ Controls guideline defaults, not eligibility evaluation.

C. Edit Offer business process security→ Security won’t trigger eligibility rules.

D. Enable Eligibility Rule Performance Enhancement→ Improves performance but doesn’t force rule execution.

InWorkday Compensation, step progression is controlled through a combination ofduration(time-based eligibility) andprogression rules(additional conditions, like hours worked or performance).

Here’s how the scenario breaks down:

Requirement 1 – 12 months of employment

Workday supports step duration, where you can specify that an employee must remain at a step for a defined period before being eligible for the next step.

Setting a duration of12 monthsensures that the employee only becomes eligible for a step increase after completing a year in the role.

Requirement 2 – 400 hours worked

Workday allows you to configurestep progression rulesthat evaluate conditions beyond time, such ashours worked, performance ratings, or other calculated fields tied to the worker.

Aprogression rule counting the number of hours workedensures that the pay increase is not triggered until the employee meets the required 400 hours.

Why not the other options?

A. Assign first step during compensation proposal + 12 months rule– This would only apply the first step, but it doesn’t enforce the “400 hours worked” requirement.

B. Hours worked only– This ignores the requirement of12 months of employment.

C. Duration of 12 months only– This ignores the requirement of400 hours worked.

Thus, onlyD(duration + step progression rule) satisfiesboth conditions simultaneously.

References (from Workday Pro Compensation knowledge & learning resources):

Workday Compensation – Step Progression Configuration:Duration enforces time-in-step, while progression rules allow conditions such as hours worked or performance-based eligibility.

Workday Pro Training Materials (Compensation module):Step increase rules require combiningdurationwitheligibility/progression conditionsfor multi-criteria automation.

Workday Community – Compensation Step Progression Guide:Confirms that when multiple criteria must be met (e.g., tenure and hours worked), they must be configured inboth the duration setting and the progression rule logic.

In Workday,eligibility rules are optimized by sequencing broader population filters first, followed by narrower ones.

Here:

Organization = 50 employees

Job family = 5 employees

To ensure performance optimization, the system should firstfilter by organizational membership (50), then applyjob family (5).

This reduces the number of workers Workday needs to evaluate at the second step.

Why not the others?

B. Eligibility sequenced automatically→ Not entirely true; sequencing can be configured for optimization.

C. Remove job family→ Would ignore requirements.

D. Job family precedes organization→ Less efficient, because it would start from 5 but miss optimal evaluation across 50 employees.

The allowance plan has adefault = $100 USD, plusprofiles for Toronto, Paris, Sydney.

Dublin (Ireland) does not have a profile yet, so Workday defaults to theplan default value.

Since the default is$100 USD, that is the value assigned at hire.

Why not the others?

A. €0 EUR→ No such rule; Workday always uses defaults when profiles are missing.

C. €80 EUR→ That’s Paris profile, not Dublin.

D. $0 USD→ Incorrect because the plan default is not zero but $100.

Base Pay Elementson a grade profile determine which compensation plans/elements are included inTotal Base Pay.

In this scenario, Mexico employees already haveBase Pay + 13th Monthincluded. To ensureFamily Allowanceis also counted as part of total base pay, you mustadd the family allowance elementdirectly in theBase Pay Elements fieldof the Mexico grade profile.

This way, when Workday calculates total base pay, it aggregates all specified components.

Why not the others?

B. Create custom compensation basis→ Useful for reporting/eligibility but not tied to grade profile definitions of total base pay.

C. Put Eligible Earnings Override EIB→ This is a data load tool, not a configuration solution.

D. Compensation element group→ Groups are for reporting or eligibility, but they don’t define which plans contribute to total base pay.