Setup > Settings

You can define settings for plan payment caps, objective payment caps, and the proration of plan bonus values on the Setup > Settings page. These settings apply to all Objectives users.

Set Payment Caps

You can specify the maximum payout percentage for each type of objective and the plan cap default (between 0 and 1000 percent). Caps are not visible to managers or employees; however, they do see a visual indicator on the plan when the payment has been adjusted due to the cap.

  1. Click the Setup tab, then click Settings in the secondary menu. The Settings screen appears displaying the existing payment cap configuration.
  2. In the Quantitative field, type the value to use to cap payment for objectives with targets.
    note: Company objectives and Individual objectives are defined with or without a target value. In most cases, the cap values will be the same for both quantitative and qualitative objectives. The maximum value is 1000 which implies “no cap”.
  3. In the Qualitative field, type the value to use to cap payment for objectives with no targets.
  4. In the Plan Cap Default field, type the value to use as the default for each person’s bonus target plan cap. To view plan cap values for all people, go to Plan Design > Bonus Targets.
    note: The default you specify applies only to users created after you save this setting.
  5. Click the Save button.

Plan cap settings can be changed at any time and apply immediately to all plans that are not completed; plan calculations will be updated when a plan is estimated or saved, Changes to payment caps have no effect on plans which have already been submitted for payout.

Bonus Value Settings

You can enable (or disable) bonus proration for your organization. You can also specify the default value for each person’s target period.

Enabling Bonus Proration

When enabled, bonus values allocated to plans automatically adjust when there are multiple bonus values for a person during a plan period. The bonus values for each person can be found on Plan Design > Bonus Targets.

Proration is calculated based on the number of total calendar days in the period. In cases when proration is disabled, a plan uses the bonus value that is effective on the last day of the period.

For example, a quarter has 91 calendar days. A person’s bonus is 5000 for the 1st 30 days and 7500 for 61 days. With proration enabled, the bonus would be 1648.35+5027.47 = 6675.82. With proration disabled, the bonus would be 7500.

  1. Click the Setup tab, then click Settings in the secondary menu. The Settings screen appears.
  2. In the Proration field (in the Bonus Value section), choose either the Enabled or Disabled radio button, as appropriate.
  3. Click the Save button.

Setting the Default Bonus Target Period

You can set the default value for each person’s target period. Choose Quarterly when your proration model does not split evenly across quarters or when the bonus target is unique per quarter (and most, or all, of your users have a quarterly bonus target period).

note: Changing the default value only impacts new people added to the organization. For existing users, you need to modify the bonus target period and any appropriate bonus targets for each user.

  1. Click the Setup tab, then click Settings in the secondary menu. The Settings screen appears.
  2. In the Bonus Target Period Default field (in the Bonus Value section), choose either the Yearly or Quarterly radio button, as appropriate.
  3. Click the Save button.