Compensation Management in Dynamics AX 2012

By Kristy Loeks | June 4, 2013

Microsoft Dynamics AX 2012 offers robust functionality designed to more effectively manage compensation across entire organizations.  Compensation is managed using compensation plans in combination with eligibility rules to restrict enrollment as needed.

Fixed compensation plans

Fixed compensation plans manage base pay and merit increases to employees, whether they are paid on an hourly or salary basis. Fixed comp plans within AX enable organizations to design and enforce pay guidelines through the use of compensation grids. Grids utilize bands, grades or steps with custom reference points to determine the approved range of pay rates. AX also accommodates multiple compensation grids based on employee location or compensation region.

Compensation Management in Dynamics AX 2012

Variable compensation plans

Variable compensation plans are used to manage incentive pay, such as bonuses, stock options and stock grants. Variable comp plans allow organizations to easily determine award amounts based on achievement of objectives.

Eligibility rules

Employees can be enrolled in multiple compensation plans. Enrollment is controlled by the eligibility rules assigned to each plan. Eligibility rules identify eligible employees based on specific jobs, job functions or type, departments, labor unions or compensation regions.

Pay rate changes

Base pay changes can be calculated in multiple ways. Pay rate equity across organizations without regard to performance can be controlled through the use of range utilization matrices and control points. Organizations utilizing a pay-for-performance strategy in managing compensation can associate compensation plans with employee performance, utilizing employee performance ratings to affect both fixed pay increases and incentive compensation awards.

Microsoft Dynamics AX 2012’s functionality enables organizations to achieve consistency and efficiency in compensation management, and to drive improved employee performance and productivity through well-designed pay-for-performance programs.

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