The Variable Pay utility in ExponentHR makes it possible for employees to receive varying pay rates based on the work they perform and other classifications, instead of receiving their regular default pay. Any employee with Variable Pay Administration rights can establish the list of variable rates. They can set up the rates by job code and by employee.
Note: This feature must be activated by ExponentHR before you can set up and use variable pay rates. Contact your ExponentHR Account Manager or Client Services for more information.
Variable Pay by Job Code
Each job code can be set up with a set of pay rates that vary by any combination of employee classifications (such as work location, shift, activity, etc.). Because the pay rate is based on classifications already tied to the employee in their personal record, the rate is automatically applied whenever the necessary conditions are met (for example, working in a particular job at a specific location during a specific shift).
Variable Pay by Employee
Variable pay can also be set up by employee, so that each employee is eligible for different pay rates based on the activity they are performing in their job. Because the rates are not already tied to a classification in the employee personal record, your company must specify which employees are eligible for what rates. HR Administrators can use a setup utility in ExponentHR to assign each variable pay rate to a single employee or multiple employees. Alternatively, managers can do this through a Pay Rate Change EAN for existing employees or for new employees or rehires through a New Hire Enrollment EAN or Rehire EAN. Once they are eligible, instead of receiving their regular pay rate, employees can select the variable rates in Time Clock that apply to the activities they performed that day.
Here is the overall work flow for how to set up and use variable pay:
1. An HR administrator sets up the default cost allocation or default time and billing allocation for the employee.
2. An HR administrator sets up the variable pay rates, either by job code or by employee.
3. An HR administrator or manager assigns the variable pay rate. This ensures the employee will be eligible for the pay rate and that it will appear as an option in their Time Clock.
Note: If the variable pay rate is tied to a job code, the rate is automatically assigned to the employee via his or her job code and other classifications. The HR administrator does not make any manual assignments.
4. The employee (or the employee's manager) selects the applicable variable pay rate in the cost allocations portion of the Time Clock when they punch out.
Note: If the work that the employee performed is tied to a job code and other classifications, the applicable rate is automatically paid. The employee does not make any further selections.
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