Assigning acompensation grade to a job profilelinks that job to adefined pay range(min, midpoint, max).

This ensures that whenever employees are hired or promoted into the job profile, Workdaydefaults the pay range guidanceautomatically.

Managers and HR can then use this information to propose fair and competitive pay.

Why not the others?

B. Target compensation amount→ Target comp is usually set at the employee or plan level, not the grade.

C. Eligibility for bonus plans→ Controlled viaeligibility rules, not compensation grades.

D. Compensation frequency→ Determined byplan setup (annual, monthly, hourly), not by grades.

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.

The design requires thatemployees only progress if they do NOT have poor performance (rating = 1).

Thus:

Step 1= entry, no condition needed.

Step 2 and Step 3require conditional logic:Performance rating ≠ 1.

This ensures employees can only progress beyond Step 1 if their performance is above “poor.”

Why not the others?

A. All steps require condition logic rating = 1→ Would block all progress (wrong condition).

C. Step 1 and 2 require ≠ 1→ Step 1 is the baseline, no condition required.

D. Step 1 and 2 require rating = 1→ Opposite of requirement, would keep poor performers eligible.

During aChange Job, compensation may be recalculated, and plans withno eligibility criteriamay inadvertently be dropped.

Thecompensation partnermustrestore the planafter the transfer usingPropose Compensation Change.

This ensures the employee retains the allowance assignment without disrupting the change job process.

Why not the others?

A. Roll Out Compensation Plans→ Mass rollout, not individual fix.

B. Plan Adjustment→ Adjusts targets/amounts, not restores removed plans.

D. Request Compensation Change→ Typically for ad hoc changes; restoration during job change is handled viaPropose Compensation Change.

Effective Date (March 1)= When the pay increase is valid for payroll.

Employee Visibility Date (March 21)= When employees can actually see the change in Workday.

This allows managers to communicate the increase by March 20, and employees only see it from March 21 onward, while payroll processes it correctly on March 31.

Why not the others?

A. Expected End Date March 31→ Used to close plans, not to control visibility.

B. Actual End Date March 1→ Would end the plan immediately.

D. Effective Date March 5→ Wrong; payroll needs it effective March 1.

TheEmployee Compensation Audit Reporthighlights mismatches betweeneligibility rulesand actual assignments.

SinceSales Analystis part of Sales job family but eligibility rules may not yet reflect thisnew job profile, the allowance plan appears underUnassigned Eligible Compensation Components→ meaning the employee is eligible but has not yet been assigned the component.

Why not the others?

A. Won’t appear→ It will appear, because Sales job family has a profile.

B. Assigned Eligible Compensation Components→ Only if already assigned.

D. Assigned Ineligible Compensation Components→ Not correct, because Sales Analyst job profile makes them eligible.

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.