Before using the Paychex Flex® Engage Compensation tool, you will first start with the following steps.
Please note: If you are using performance review results in your compensation cycle, you will need to wait until the review is marked as complete before launching the cycle. The performance review template also has to be weighted.
Employee Pay
For anyone that is paid hourly, please make sure their standard hours are entered into Paychex Flex. If they do not have standard hours, we are unable to calculate their base pay and include them in a compensation cycle. Please find steps below on how you can view everyone’s standard hours and base pay that was brought over from Paychex Flex.
Manage Compensation tab on the left hand side menu.
Employee Pay.
Scroll all the way to the right to view the “Standard Hours” column.
Compensation Bands
Manage Compensation tab on the left hand side menu.
Compensation Bands.
Click Add Band in the top right hand corner.
Enter in the Band Name.
Select one of the following options from Job Type.
Employee
Manager
Executive
Set up the base pay for this position.
Minimum - What is the minimum you would have the base pay be for this position?
Target - What is the target base pay you would want for this position?
Maximum - What is the maximum you would have the base pay be for this position?
Set up the variable pay for this position. Please keep in mind you can set these to be all 0 if this position does not have variable pay.
Add the employees that are included in this band.
Click Save Band in the bottom right hand corner.
Once this information is complete, you will move on to the settings.
Cycle Settings
Determine if you would like notifications in a compensation cycle to be turned on.
2. Set up the compensation statement details. Please keep in mind, employees will only see this summary if toggled on. In the compensation cycle, you have the option to determine visibility.
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Title
Summary Text
With all of the above completed, you can now create a compensation cycle!
Compensation Cycles
Setup
Go to the Compensation Cycles tab on the left hand side menu.
Select + New Comp Cycle in the top right hand corner.
3. Name the compensation cycle.
4. Select what type of cycle you plan to run. (Please keep in mind, you can select more than one option but base pay has to be selected).
Base Pay: Adjust the base pay for eligible employees with Manager recommendations.
Bonus: Award employees with a bonus and include Manager recommendations.
Equity: Award employees with an equity grant and include Manager recommendations.
There are two options to include performance review results in your compensation cycle.
Option 1: Budget the merit adjustments based on performance evaluations.
Option 2: Only include the performance rating in the cycle as a reference, to display to the recommenders and approvers.
Click here if you are launching a compensation cycle that is base pay + bonus. (Article coming soon, please reach out to your designated Engage Partner in the meantime.)
Click here if you are launching a compensation cycle that is base pay + equity. (Article coming soon, please reach out to your designated Engage Partner in the meantime.)