Workday Workday-Pro-Compensation WorkdayProCompensationExam Exam Practice Test

If theeligibility rule for Sales / Australia profileis changed to remove “Sales,” thenall Australian employees(regardless of job family) become eligible.

As a result:

Any Australian employee moving roles will be assigned the allowance.

Sales employees will no longer qualify, so their allowances are automatically removed during compensation/job changes.

Why not the others?

A. Sales removed immediately→ Removal only happens at a transaction/job change evaluation.

C. All Australians automatically enrolled→ Not automatic, triggered during job/comp events.

D. System error→ Not how Workday handles eligibility changes.

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.

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.

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.

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.

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.

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.

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.

Gross Up= Adjusting a payment so that after tax deductions, the employee takes home the intended net amount.

Example: If you want an employee tonet $1,000, and taxes are 20%, Workday will calculate and issue ~$1,250 gross so the employee keeps $1,000 after taxes.

Why not the others?

A. Show taxes to user→ Not what Gross Up does.

B. Manual update required→ Gross up is automated, not manual.

C. Apply taxes normally→ Workday already applies taxes; gross up goes further by adjusting amounts.

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.

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.

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.

TheCompensation Spreadsheet reportprovides a detailed view of:

Worker’stotal base pay.

Assignedcompensation package.

Compa-ratio(position in range).

Can be scoped by organizations and includes subordinates if required.

Why not the others?

A. Total Rewards→ Worker-facing summary report, not detailed comp admin view.

B. Employee Compensation Details by Job Profile→ Focused on jobs, not individual worker comp breakdown.

D. Employee Compensation Audit→ Audit mismatches, not full comp detail.

The business requirement: Raise the defaultmobile allowance from $150 → $200, butkeep employees with override amounts at their current difference.

UsingSet Up Allowance Plan Adjustmentwith the optionAdjust by Same Amounts for Employees Using Overrideensures that:

The default is increased by $50.

Employees with overrides will also receive a $50 adjustment (preserving their override difference).

Why not the others?

B. Change plan amounts & rollout→ Would overwrite override amounts, losing differences.

C. Remove and rollout new plan→ Unnecessary and disruptive.

D. Adjust to New Defaults→ Would reset overrides to default, eliminating differences.

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.

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.