Workday-Pro-Compensation WorkdayProCompensationExam Questions and Answers

To retire or replace an existingbonus plan, you need to mass-remove it from all employees currently assigned.

The standard Workday task for this isRemove Compensation Plans from Employees, which allows you to:

Select thecompensation planto remove.

Apply aneligibility ruleto identify affected employees.

This is efficient and ensures employees no longer carry the outdated plan.

Why not the others?

A. Mark plan inactive→ Prevents new assignments but doesn’t remove existing employee assignments.

C. Request Bonus Payment web service→ Used for issuing payments, not removing plans.

D. Change Job→ Not appropriate for mass plan removal.

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.

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.

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.

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.

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.

By default, if compensation defaults from the requisition, Workday mayskip eligibility re-checks.

To ensure eligibility rules arealways executedduring the Offer process (especially if location, job family, or country changes), enable:

Run Eligibility Rules when there is Requisition CompensationinEdit Tenant Setup – HCM.

Why not the others?

B. Enable Defaulting Based on Guidelines→ Controls guideline defaults, not eligibility evaluation.

C. Edit Offer business process security→ Security won’t trigger eligibility rules.

D. Enable Eligibility Rule Performance Enhancement→ Improves performance but doesn’t force rule execution.

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 multiplecompensation basesapply to an employee, Workday selects theprimary basisbased onranking (lowest number = highest priority).

Rankings here:

Management = 1

International = 2

Sales = 3

Therefore,Management Compensationis the primary basis.

Why not the others?

B. Sales Compensation→ Ranked lowest (3).

C. International Compensation→ Ranked 2, lower than Management.

D. Total Base Pay→ Not listed among eligible ranked bases here.

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.

Default compensation for requisition compensationensures thatall hires from a requisition default to the same plan amounts/rates, supporting consistency in offers.

This prevents discrepancies between candidates applying for the same role and requisition.

Why not the others?

A. Guidelines on a position→ Position compensation is separate from requisition compensation.

C. Every employee in position receives same compensation→ Controlled by position defaults, not requisition.

D. Eligible plans view→ That’s determined bycompensation package setup, not requisition defaults.

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.

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.