Workday-Pro-Compensation Sample Questions Answers

If the recruiter cannot change the allowance amount (e.g., from$50 AUD → $100 AUD), the most likely reason is that the allowance plan is configured withNo Overrideselected.

No Overrideprevents users from modifying the default plan amounts during transactions.

Why not the others?

A. Plan not in package→ If missing, it wouldn’t appear at all, not appear but be locked.

B. Eligible for more than one package→ Doesn’t prevent changing amounts.

C. Not eligible for profile→ Would prevent plan assignment, not lock override fields.

Some countries (e.g., Italy, Spain) legally require employees to be paid13 or 14 times per year.

Workday supports this by using aPeriod Salary Planwith amultiplier, which allows additional months, weeks, or days of pay.

In this case, to meet the legislation for an extra month, configure theperiod salary plan with a 1-month multiplier.

Why not the others?

A. Amount-based allowance plan→ Allowances are supplemental, not designed for legislated base salary multipliers.

B. Percent-based merit plan→ Merit is performance-based, not a legislative requirement.

C. One-time payment plan→ One-time payments are ad hoc, not recurring annual extra months.

When setting up acar allowance plan(or any allowance/compensation plan in Workday), you must ensure that it is tied to payroll through the correctcompensation element.

Here’s the breakdown of the options:

Maintain Compensation Elements✅

This task is where youcreate, configure, and manage compensation elements.

Everycompensation plan(like salary, allowance, bonus) must be associated with acompensation element, which then links topayroll earningsfor processing.

For acar allowance, you would create a new compensation element (type = allowance) so that payroll can recognize and pay it.

Maintain Compensation Element Groups

This is used to group multiple compensation elements together for easier administration, reporting, or eligibility rules.

It does not create the element itself, so it’s not the right task here.

Map Compensation Elements to Payroll Earnings

This step is necessaryafterthe element exists, to map the element to the correctpayroll earning code(so payroll knows how to pay it).

However, you can’t map something that hasn’t been created yet.

Edit Tenant Setup HCM

This is a higher-level tenant configuration task for broad HCM settings (security, defaults, integrations, etc.).

It is not used for creating compensation elements.

????The correct first step to create acar allowance compensation plan that can be processed by payrollis to use the taskMaintain Compensation Elements.

References (Workday Pro Compensation knowledge & training):

Workday Pro Compensation Training:Compensation elements are the foundation for linking plans to payroll. The “Maintain Compensation Elements” task is where new elements are created.

Workday Community – Compensation Element Setup Guide:Clarifies the difference between creating (Maintain Compensation Elements), grouping (Maintain Compensation Element Groups), and mapping (Map Compensation Elements to Payroll Earnings).

Workday Payroll & Compensation Integration Documentation:Requires elements to be defined before they can be mapped to earnings.

TheEmployee Compensation Audit reportidentifies mismatches, such as employees:

Assigned to comp plans for which they are not eligible.

Missing comp plans they should have.

It is the standard audit tool for verifying eligibility alignment with assigned compensation.

Why not the others?

B. Rollout Process report→ Tracks rollout actions, not eligibility mismatches.

C. Employees Assigned Multiple Bonus Plans→ Only checks duplicate plan assignments.

D. Compensation Spreadsheet→ Used for review/updates, not eligibility audits.

In Workday, when you set anActual End Dateon a compensation plan, the plan remains activethrough that date.

Workday automaticallyremoves the plan the day afterthe entered actual end date.

Example: If Actual End Date = March 31, the plan is removed effectiveApril 1.

Why not the others?

B. Last day of the month +1→ Too restrictive; not always tied to month-end.

C. On the actual end date→ Wrong; the plan is validthroughthe end date.

D. Last day of the pay period +1→ Not relevant; tied to end date, not pay periods.

AUnit Salary Planpays based onunits worked(e.g., miles, credits, or kilometers).

In this case, pilots earn extra based onkilometers flown, makingunit salary planthe correct choice.

It also supportsestimation of wagesfor offer letters since you can project based on expected units.

Why not the others?

A. Unit-based allowance plan→ Allowances are flat recurring payments, not tied to actual units worked.

B. One-time payment→ Used for bonuses or ad hoc payments, not recurring per-unit pay.

D. Period salary plan→ Handles additional pay periods, not per-unit payments.

To increase thehousing allowance plan from $3,000 → $3,500and update both new and existing employees:

UseSet Up Allowance Plan Adjustmentwith optionAdjust to New Defaults.

This updates all employees on the plan to the new standard amount while ensuring future hires also default to the updated value.

Why not the others?

A. Create a new plan→ Creates unnecessary duplication, complicating reporting.

B. Edit the allowance plan directly→ Updates default for future, but not current employees.

D. Request Compensation Change per employee→ Manual, time-consuming, not scalable.

The design requires thatemployees only progress if they do NOT have poor performance (rating = 1).

Thus:

Step 1= entry, no condition needed.

Step 2 and Step 3require conditional logic:Performance rating ≠ 1.

This ensures employees can only progress beyond Step 1 if their performance is above “poor.”

Why not the others?

A. All steps require condition logic rating = 1→ Would block all progress (wrong condition).

C. Step 1 and 2 require ≠ 1→ Step 1 is the baseline, no condition required.

D. Step 1 and 2 require rating = 1→ Opposite of requirement, would keep poor performers eligible.

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.

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).

The requirement is aflat $500 monthly allowancefor Sales employees.

Amount-based allowance planis the correct choice since it supports fixed, recurring payments in a defined currency and frequency.

Adding aneligibility ruleensures only employees in theSales job familyare assigned this allowance.

Why not the others?

A. Unit-based allowance plan→ Used when pay is based on number of units (e.g., kilometers, credits), not flat amounts.

B. Percent-based allowance plan→ Tied to % of base pay, not a fixed dollar figure.

D. Reimbursable allowance plan→ Used for expense reimbursements, not recurring flat compensation.

In Workday,eligibility rules are optimized by sequencing broader population filters first, followed by narrower ones.

Here:

Organization = 50 employees

Job family = 5 employees

To ensure performance optimization, the system should firstfilter by organizational membership (50), then applyjob family (5).

This reduces the number of workers Workday needs to evaluate at the second step.

Why not the others?

B. Eligibility sequenced automatically→ Not entirely true; sequencing can be configured for optimization.

C. Remove job family→ Would ignore requirements.

D. Job family precedes organization→ Less efficient, because it would start from 5 but miss optimal evaluation across 50 employees.

By default, Workday restricts one-time payments so that onlyone plan per effective date/reasoncan be entered.

To allowmultiple one-time payments(different plans and pay dates, same effective date/reason), you must enable:

“Enable Multiple One-Time Payments”inEdit Tenant Setup – HCM.

Why not the others?

A. Add Review step for HR Partner→ Impacts workflow, not configuration.

B. Disable Pay Date Help Text→ Only changes help text display, not functionality.

D. Configure same eligibility rules & package→ Doesn’t override the one-payment-per-effective-date limitation.