11 grades

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Grades
Oracle Fusion
Human Capital Management

Work Structures
Grades & Grade with Steps
 Create grades to record the level of compensation for
workers
 You can create grades for multiple pay components,
such as salary, bonus, and overtime rates
 Grade steps are distinct increments of progression
within a grade. You can set up grades with or without
grade steps

Work Structures
Grades
 You assign each grade to a set. If you assign a grade to the common set, then the grade is available for use in all
business units. To limit a grade to a single business unit, you can assign it to a set that is specific to that business unit.
 You can define one or more grades that are applicable for each job and position. This list of valid grades, combined with
the settings for two profile options, enables you to restrict the grades that can be selected when you set up
assignments or employment terms for a worker.
 If you use positions, then the grades that you assign to jobs are the default grades for the positions that you associate
with each job. You can use the default grades for the position, remove ones that don't apply, or add new ones
 PER_ENFORCE_VALID_GRADES : If you set this site-level profile option to Yes, then users can select a grade only
from the list that you defined for the job or position. If valid grades are defined for neither the job nor the position, then
users can select from all grades. If you set this profile option to No, which is the default value, then users can select
from all grades.
 PER_DEFAULT_GRADE_FROM_JOB_POSITION : If you set this site-level profile option to Yes, and there is only one
valid grade for a job or position, then that grade is used by default in the assignment or employment terms. If you set
this profile option to No, which is the default value, then users can select from all grades.

Grades
Grade Rates
 Grade rate values are the compensation amounts associated with each grade. Grade rate values can be
either a fixed amount or a range of values, and you can set up rates for different types of pay, such as salary,
overtime, and bonuses.
 Grade rates for some jobs or positions might include an hourly salary rate and an overtime rate. Grade rates
for other jobs or positions might contain a salary rate type with a range of amounts and a bonus rate type with
a fixed amount. Grade rates typically serve only as a guideline to validate that the salary you propose during
the compensation process for a worker on a certain grade is appropriate for that grade.
 GRADE_PAY_RATE_TYPE lookup type identifies the compensation components for which you want to set up
grade rates. The predefined values are salary, bonus, and overtime.
 For grades that were created without steps, two options for adding rates are available:
Add the rates at the same time as when you add the grade using the Manage Grades task
Add the rates separately using the Manage Grade Rates task
 For grades that were created with steps, you must first add the grade to a grade ladder, and then add the
rates for each step

Grades
Grade Rates - Examples

Grades
Grade Rates - Examples
 Sets enable you to share grades that are common across
business units in your enterprise
 Grade rate values are associated with each component of
compensation for your workers. While grades may be
common across different areas of your enterprise, grade
rates vary among the countries in which you employ
people. For example, if your enterprise has engineer jobs in
the United States, the United Kingdom, and Australia, you
can set up grades for a set that is shared between the
countries, but set up different grade rates for each country
in the applicable currency.
 So assign grades to sets, and assign grade rates to
legislative data groups.
 Salaries are validated using the grade rates and a warning
is issued that the new salary is outside his salary range.
 Payroll elements reference grades in the eligibility criteria.

Grades
Grade and Grade Rates - Demo

Grades
Grade Ladders
 Create grade ladders to group grades or grades with steps in the sequence in which your workers typically progress
 You can set up separate grade ladders for different types of jobs or positions in your enterprise. For example, you may
create three grade ladders for your enterprise: one for technical grades, another for management grades, and a third
for administrative grades.
 Two types of grade ladders are available:
Ladders with grades
Ladders with steps
 You cannot create a grade ladder with a combination of both grades and grades with steps.

Grades
Grade Ladders - Types
Ladders with Grades
You create ladders with grades by building a hierarchy of grades that were created without steps. When you set up
this type of ladder, only grades without steps are available to add to the ladder. You do not define any grade rates
when you set up a ladder with grades; the rates for the grades within the ladder are inherited from the rates that
were added when you set up the grades. To add or edit rates for grades, you must use the Manage Grade Rates
task.
Ladders with Steps
You create ladders with grade steps using grades that were created with steps. When you set up this type of
ladder, only grades with steps are available to add to the ladder. You define step rates and the values for each
step when you set up the ladder, and the rates are unique to each ladder. You cannot share step rates between
grade ladders.

Grades
Grade Ladders - Examples
Grade Ladder using Grades with Steps:
To set up a grade structure to reflect this table, perform the following
tasks:
 Set up three different grades and add three steps for each grade.
 Set up a grade ladder using the Grades with Steps type, and select all
three grades
 Set up step rates for annual salary amounts using the rates in the
table
Grade Ladder using Grades:
To set up your grade structure to reflect this table, perform the
following tasks:
 Set up eight separate grades.
 For each grade, enter the rates from the preceding table.
 Set up a grade ladder with the Grades type and add all eight
grades to the ladder

Grades
What’s Changed?
Compared to PeopleSoft:
 Grades exist independently of salary plans
 You can create multiple rates for each grade and therefore define multiple values or ranges for the same grade
 Use grade ladders to sequence grades (can be grades with or without steps)
Compared to EBS:
 Simplified set up of grades
 Grade ladders available in Global HR with the ability to enter all step rate values directly on one page
 Grades are set enabled in Fusion

Grades
Grade Ladders - Demo

Grades
Profile Options - Demo
PER_DEFAULT_GRADE_FROM_JOB_POSITION
PER_ENFORCE_VALID_GRADES

Grades
Grades - Activities

11 grades

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11 grades