Workday Workday-Pro-Compensation WorkdayProCompensationExam Exam Practice Test

Maintain Custom Validationsallows you to refine which events validations apply to.

Workday distinguishes betweenRequest One-Time Payment(manager/HR initiated) andRequest One-Time Payment for Self(employee initiated).

By using theOne Time Payment Event for Self field, you can exclude self-service events from being validated by the existing custom validations.

Why not the others?

B. Add new validations→ Would duplicate rules rather than exclude them.

C. Remove Employee as Self from security domain→ Would block employees from submitting requests, not exclude validations.

D. Configure Options Fields→ Controls fields displayed, not validation logic.

APeriod Salary Planin Workday supports paying employees more than 12 times per year (e.g., 13 or 14 payments for regions like Italy or Spain).

This allows payroll to spread annual salary across the correct number of pay periods.

Why not the others?

A. Unit salary plan– Pays based on units (like per credit hour for faculty), not extra months.

B. Hourly plan– Pays by worked hours, not relevant to salaried employees.

D. Salary plan– Standard salary plan assumes 12 months and does not support extra pay periods.

In eligibility rule setup, theSource External Field or Condition Rulecolumn shows both fields and condition rules.

To restrict your entry tofields only, Workday requires theprefixfield:.

Example: enteringfield:Worker Typeensures only fields appear, excluding other condition rules.

Why not the others?

B. Brackets→ Not a recognized syntax.

C. All caps→ Doesn’t change filtering behavior.

D. Asterisk→ Used for wildcard searches, not filtering.

Assigning acompensation grade to a job profilelinks that job to adefined pay range(min, midpoint, max).

This ensures that whenever employees are hired or promoted into the job profile, Workdaydefaults the pay range guidanceautomatically.

Managers and HR can then use this information to propose fair and competitive pay.

Why not the others?

B. Target compensation amount→ Target comp is usually set at the employee or plan level, not the grade.

C. Eligibility for bonus plans→ Controlled viaeligibility rules, not compensation grades.

D. Compensation frequency→ Determined byplan setup (annual, monthly, hourly), not by grades.

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.

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.

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.

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.

InWorkday Compensation, step progression is controlled through a combination ofduration(time-based eligibility) andprogression rules(additional conditions, like hours worked or performance).

Here’s how the scenario breaks down:

Requirement 1 – 12 months of employment

Workday supports step duration, where you can specify that an employee must remain at a step for a defined period before being eligible for the next step.

Setting a duration of12 monthsensures that the employee only becomes eligible for a step increase after completing a year in the role.

Requirement 2 – 400 hours worked

Workday allows you to configurestep progression rulesthat evaluate conditions beyond time, such ashours worked, performance ratings, or other calculated fields tied to the worker.

Aprogression rule counting the number of hours workedensures that the pay increase is not triggered until the employee meets the required 400 hours.

Why not the other options?

A. Assign first step during compensation proposal + 12 months rule– This would only apply the first step, but it doesn’t enforce the “400 hours worked” requirement.

B. Hours worked only– This ignores the requirement of12 months of employment.

C. Duration of 12 months only– This ignores the requirement of400 hours worked.

Thus, onlyD(duration + step progression rule) satisfiesboth conditions simultaneously.

References (from Workday Pro Compensation knowledge & learning resources):

Workday Compensation – Step Progression Configuration:Duration enforces time-in-step, while progression rules allow conditions such as hours worked or performance-based eligibility.

Workday Pro Training Materials (Compensation module):Step increase rules require combiningdurationwitheligibility/progression conditionsfor multi-criteria automation.

Workday Community – Compensation Step Progression Guide:Confirms that when multiple criteria must be met (e.g., tenure and hours worked), they must be configured inboth the duration setting and the progression rule logic.

Employees managed byManage Basis Total (MBT)require theirprimary compensation basis totalto remain unchanged when allowance plan adjustments are made.

By selectingRetain Basis Total for MBT Employees, Workday keeps the overall basis constant and reallocates other plans in the MBT calculation instead of increasing the total.

Why not the others?

A. Clear MBT checkbox→ Would remove MBT management completely.

C. Clear Retain Basis Total→ Opposite of required behavior.

D. Adjust to New Defaults→ Updates values, but doesn’t enforce retention of MBT total.

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.

During aChange Job, compensation may be recalculated, and plans withno eligibility criteriamay inadvertently be dropped.

Thecompensation partnermustrestore the planafter the transfer usingPropose Compensation Change.

This ensures the employee retains the allowance assignment without disrupting the change job process.

Why not the others?

A. Roll Out Compensation Plans→ Mass rollout, not individual fix.

B. Plan Adjustment→ Adjusts targets/amounts, not restores removed plans.

D. Request Compensation Change→ Typically for ad hoc changes; restoration during job change is handled viaPropose Compensation Change.

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.

Compensation gradesin Workday definepay ranges(minimum, midpoint, maximum) for job profiles.

Their purpose isguidanceduring compensation transactions (hire, promotion, merit increase, etc.), ensuring pay is competitive and consistent.

They do not enforce payroll mapping or overtime eligibility directly but help managers and HR align salary offers to market ranges.

Why not the others?

B. Connect salary to payroll→ That is done bycompensation elements, not grades.

C. Overtime eligibility→ Determined bywork hours & worker type, not grades.

D. Compensation basis for reporting→ Controlled bycomp basis setup, not grades.

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.

The scenario describes acompensation partnerbeing able to assignany allowance plan, even when the employee isnot eligible.

This is controlled by thesecurity domain "Add Compensation Plans: Add Allowance", which allows users with access to bypass eligibility and directly assign allowance plans.

Why not the others?

A. Worker Data: Compensation Plan Type→ Governs visibility to compensation data, not bypassing eligibility.

B. Select Any Compensation Package→ Pertains to choosing packages, not adding allowance plans outside eligibility.

C. Worker Data: Compensation for Managers→ Grants managers ability to propose comp, but does not override eligibility.