WORKDAY-PRO-COMPENSATION practice question 5 of 15

A mobile allowance plan has an amount of $150 per month. The new amount will be $200 for those employees using the plan. Employees using an override amount will keep their current difference. How will you update the plan target and maintain current differences?

Full set: 55 questions

Domain Compensation Events

Answer options
A: Use the Set Up Allowance Plan Adjustment task and select Adjust by Same Amounts for Employees Using Override. Correct answer
B: Change the allowance plan amounts and rollout the plan to all eligible workers.
C: Use the Remove Compensation Plan process and rollout the new plan to all eligible workers.
D: Use the Set Up Allowance Plan Adjustment task and select Adjust to New Defaults for Employees Using Override.
Correct Answer:
A. Use the Set Up Allowance Plan Adjustment task and select Adjust by Same Amounts for Employees Using Override.
Explanation

The Set Up Allowance Plan Adjustment task is the designated tool in Workday for performing mass updates to allowance plan amounts for assigned employees. To meet the requirement of updating the plan's default amount while preserving the monetary difference for employees with an override, the "Adjust by Same Amounts for Employees Using Override" option must be selected. This option calculates the change between the old and new default amounts (in this case, $50) and applies this same adjustment to every employee's current amount, including those with overrides. This ensures their override difference relative to the default is maintained.

Why Incorrect

B. Changing the allowance plan amounts and rolling out the plan would likely reset all employees, including those with overrides, to the new default amount, failing to maintain the override difference.
C. This is an inefficient and destructive method. Removing and re-adding the plan would erase all existing assignments and historical data, including any personalized overrides.
D. Using the "Adjust to New Defaults for Employees Using Override" option would explicitly move all employees, including those with overrides, to the new default amount, thereby eliminating their unique override difference.

References

1. Workday Administrator Guide

Compensation Core: The section on "Mass Actions for Compensation" details the functionality of the Set Up Allowance Plan Adjustment task. It specifies that the "Adjust by Same Amounts for Employees Using Override" setting applies the calculated difference between the old and new default amounts to all participants

thus preserving the value of any existing overrides relative to the default.

2. Workday Documentation

"Set Up Allowance Plan Adjustment Task": This document outlines the configuration options for the task. It explicitly contrasts the "Adjust by Same Amounts" and "Adjust to New Defaults" options

clarifying that the former maintains the override delta while the latter eliminates it by moving all employees to the new standard amount. This directly supports the selection of option A for the given scenario.

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