Workday-Pro-Compensation WorkdayProCompensationExam Question and Answers

Acompensation elementin Workday is the foundational link between acompensation plan(e.g., salary, bonus, allowance) andpayroll processing.

When you assign a compensation plan (like a car allowance, bonus, or salary plan), Workday requires acompensation elementthat directly maps to apayroll earning code.

This ensures that the pay component flows into payroll correctly, appears on pay slips, and is taxable/deductible as designed.

Why not the others?

B. Requisition compensation– Job requisitions use compensation packages for recruiting, but elements are not tied to requisitions.

C. Eligibility rules– Eligibility determineswhocan receive the plan, not the element itself.

D. Benefit deductions– Those are handled bybenefit deduction elements, not compensation elements.

TheCompensation Rule Assignment reportlistsall compensation components (plans, packages, elements, etc.) that are using eligibility rules.

This helps administrators verify where and how eligibility rules are applied across the system.

Why not the others?

B. Employee Compensation Audit→ Focuses on mismatches between eligibility and assignments, not all rules in use.

C. Compensation Spreadsheet→ Shows comp details, not eligibility rules.

D. Compensation Changes→ Tracks transaction history, not rule assignments.

TheEmployee Compensation Audit Reporthighlights mismatches betweeneligibility rulesand actual assignments.

SinceSales Analystis part of Sales job family but eligibility rules may not yet reflect thisnew job profile, the allowance plan appears underUnassigned Eligible Compensation Components→ meaning the employee is eligible but has not yet been assigned the component.

Why not the others?

A. Won’t appear→ It will appear, because Sales job family has a profile.

B. Assigned Eligible Compensation Components→ Only if already assigned.

D. Assigned Ineligible Compensation Components→ Not correct, because Sales Analyst job profile makes them eligible.

progressionbut haven’t yet been moved to the next step.

The corrective action is to runSchedule Automatic Step Progression, which processes all eligible employees and updates their step automatically.

Why not the others?

B. Maintain Compensation Steps + progression rule→ Only needed if rules are missing. If employees appear, rules already exist.

C. Change Job→ Not required; step progression is automated.

D. Set Up Grade Job Profile Adjustment→ Used for grade changes, not step progression.

TheDynamic Displayoption controls whether Workday shows onlyrelevant compensation plan sectionsduring transactions likePropose Compensation Change.

It evaluates:

Worker eligibility rules(which plans apply).

User security permissions(what the initiator can see).

This ensures users only see compensation sections relevant to their context, reducing clutter and errors.

Why not the others?

A. Segment security→ Controls data security, not dynamic display.

C. Hide Total Salary & Allowances→ Hides totals, doesn’t manage section visibility.

D. Eligibility Rule Performance Enhancement→ Improves performance, not visibility.

TheEmployee Compensation Audit reportshows, for each worker:

Assigned & eligiblecompensation components.

Unassigned but eligiblecomponents.

Assigned but ineligiblecomponents.

This makes it the primary tool for validating comp assignments against eligibility rules.

Why not the others?

A. Employee Compensation Details by Job Profile→ Focuses on job profiles, not assignment eligibility.

C. Compensation Summary→ Summary-level report, not eligibility vs. assignment detail.

D. Compensation Rule Assignment→ Shows rules applied to plans, not worker assignment detail.

Compensationgradesdefine pay ranges, andgrade profilesallow variation bylocation, job family, or other attributes.

In this case, the Software Engineer role exists inLondon, New York, and Milan, so the best practice is to:

Createone compensation grade(Software Engineer).

Addgrade profilesfor each location, each with its own pay range.

Attach thegrade(with all profiles) to the job profile.

Why not the others?

A. One grade per location→ Duplicates maintenance effort; profiles exist for this purpose.

B. Three grades tied to three job profiles→ Unnecessary; job profile is the same role globally.

D. One grade with eligibility rules→ Eligibility determines who qualifies, not pay ranges per location.

After creating a newallowance plan, you must assign it to all employees who qualify.

TheRollout Compensation Plans to Employeestask is the standard Workday process that mass-assigns plans to all workers who meet the eligibility rules.

This ensures bothcurrent and future eligible employeesreceive the plan automatically.

Why not the others?

B. View Compensation Plan Rollout Process→ Monitoring tool, not an assignment process.

C. Compensation Plan Assignment Audit→ Audit/reporting only, does not assign.

D. Employee Compensation Plans – Allowance report→ Reporting only; still requires manual actions.

The company wants to enterone total compensation amountfor Milan employees instead of entering salary, allowance, and bonus separately.

This is achieved byManage Basis Total, which allows admins to configuretotal comp entryat the worker level while Workday allocates automatically across plans.

This simplifies data entry for regions where comp is communicated as atotal package.

Why not the others?

A. Eligible Earnings Override→ Used for payroll overrides, not comp plan entry.

C. Total Base Pay→ Only includes salary + base pay elements, not full compensation package.

D. Total Salary & Allowances→ Not a standard Workday configuration option; the correct feature isManage Basis Total.

If you want to restrict employees so they can only submita single one-time payment per payment event, you must ensure thatMultiple One-Time Payments is not enabledin tenant setup.

When disabled, Workday enforcesone plan per effective date/reason.

Why not the others?

A. Segment security→ Controls data access, not number of payments allowed.

B. Rule-based BP→ Governs approvals/workflow, not structural system behavior.

C. Enable Multiple One-Time Payments→ Would allow multiple entries (opposite of requirement).

Since the eligibility rule evaluatespay rate type = salaried, you need to ensure every job profile has thecorrect pay rate type assigned.

This prevents mismatches where employees may not qualify for the salary plan due to missing or inconsistent data.

Why not the others?

A. Modify rule to evaluate all job profiles→ Broadens scope incorrectly; doesn’t ensure data integrity.

C. Pay rate type on job requisitions→ Impacts recruiting, not existing employee eligibility.

D. Assign salary plan to job profiles→ Comes after ensuring the pay rate type is consistently set.

Acompensation packageis a grouping of multiple compensation plans (salary, allowances, one-time payments, bonuses, etc.).

Workday allows you tobundle one-time payment plansinto a package (e.g., relocation bonus, signing bonus).

Why not the others?

A. Retirement plan→ Benefits plans are not part of comp packages.

C. Calculated plan→ Standalone, not typically added to comp packages.

D. Future payment plan→ Not a Workday plan type.

The correct way to give Dublin employees €90 is toadd a new plan profile specific to Ireland.

Profiles localize allowance values by country/region, ensuring correct defaults without disrupting global defaults.

Why not the others?

B. Request Compensation Change→ Manual, per employee, not scalable.

C. Set Up Allowance Plan Adjustment – No Override→ Adjustment applies to default, not region-specific.

D. Update plan default value→ Would wrongly affect US and all other non-profile employees.