WORKDAY-PRO-COMPENSATION practice question 1 of 15

An employee is eligible for these compensation bases: International Compensation (ranking 2) Management Compensation (ranking 1) Sales Compensation (ranking 3) What compensation basis will display as the employee's primary compensation basis?

Full set: 55 questions

Domain Compensation Plans

Answer options

A: Management Compensation Correct answer

B: Sales Compensation

C: International Compensation

D: Total Base Pay

Correct Answer:

A. Management Compensation

Explanation

In Workday, when an employee meets the eligibility criteria for multiple compensation bases, the system determines the primary basis by using the ranking number assigned to each. The compensation basis with the lowest ranking number is designated as the primary. In this scenario, Management Compensation has a ranking of 1, which is the lowest among the three options (International is 2, Sales is 3). Therefore, Workday will select Management Compensation as the employee's primary compensation basis.

Why Incorrect

B. Sales Compensation: This is incorrect because its ranking of 3 is higher than Management Compensation's ranking of 1, giving it a lower priority.
C. International Compensation: This is incorrect because its ranking of 2 is higher than Management Compensation's ranking of 1, giving it a lower priority.
D. Total Base Pay: This is incorrect because Total Base Pay is a calculated field that sums the components of the primary basis; it is not a configurable compensation basis itself.

References

1. Workday Documentation

Compensation Administrator Guide: "Setting Up Core Compensation Components

" Section: "Compensation Basis

" Sub-section: "Ranking." The guide specifies that when a worker is eligible for multiple compensation bases

Workday uses the ranking field to determine the primary basis. The basis with the lowest ranking number takes precedence. (Document ID: COMP-ADMIN-2023R2

Page 58).

2. Workday Documentation

Implementing Compensation: "Chapter 4: Configure Core Compensation

" Section: "Steps: Set Up Compensation Basis." This implementation guide details the configuration process

stating

"The Rank field is critical for resolving conflicts when a worker is eligible for more than one basis. The lowest number (e.g.

1) has the highest priority." (Document ID: IMPL-COMP-2023R2

Page 72

Paragraph 4).

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