Compensation Types Single Dialog Workspace

Use this workspace to set up the compensation types that you use to operate your company.

A compensation type is a template for compensation agreements that you create in the Compensation Agreements workspace.

Compensation includes standard salaries, bonuses, company cars, and so on. The compensation for each contact person (for example, employees, partners, and so on) in your system can include more than one of these forms. Because it is likely that many of the compensation agreements consist of the same elements—for example, a fixed salary plus a bonus—it is very useful to create templates for these agreements, thus ensuring that the relevant compensation forms are automatically included in all agreements of each type.

Each compensation type consists of one main compensation type that you enter in the Compensation Types tab, and any number of subordinate compensation types that you enter in the Compensation Types sub-tab. The main element typically involves compensation with a fixed amount; the subordinate compensation types are the additional elements automatically granted to the contact person when the main compensation type is part of the compensation package. When you enter a compensation type in a line in the Compensation Agreements sub-tab of the Compensation Agreements workspace, Maconomy copies the information from the Compensation Types tab to the new line. In addition, Maconomy creates a line for each subordinate compensation type entered for that main type. As a result, using compensation types as templates for compensation packages that consist of multiple compensation types makes it easier to enter the individual compensation agreements with your contact persons.

Using main and subordinate compensation elements also enables you to make the value of one compensation element depend on the value of another element. This is true for bonuses whose value is expressed as a percentage of another element. For instance, if you want to set up a compensation type for a monthly salary of 5,000 (in the monetary currency used) and a bonus of 10% of the monthly salary, set up the salary in the Compensation Types tab and create a Compensation Types sub-tab line with the bonus. When you enter the compensation type for a contact person, Maconomy also automatically creates the line with the bonus in the Compensation Agreements workspace, and you can enter the desired 10%. Because Maconomy assigns the automatically created line to the line that contains the main compensation element, Maconomy calculates the value of the bonus line as 10% of the value on the main compensation element line. However, the value of a sub-element does not necessarily have to be calculated from the main element. It can have a fixed value.

If you enter a main compensation type in the Compensation Agreements sub-tab of the Compensation Agreements workspace, Maconomy automatically creates agreement lines that have the subordinate compensation types that belong to the specified main type. These automatically created agreement lines' functionality is similar to that of the agreement lines that contain the main compensation types, and they have the same options for amount and percentage specification. Therefore, the Compensation Types sub-tab of this workspace contains the same fields as the Compensation Types tab.

You do not enter concrete amounts and percentages in this workspace because you should be able to enter separate amounts and bonus percentages in the agreements that you make with each contact person. However, in the Value Limits island, you can enter guidelines and frameworks to be followed by the person who conducts wage negotiations.