For multi position holders it important to be able to indicate or identify which position a variable compensation enrollment or award is related to.
For example, where a variable compensation is 5% of a base salary (Fixed compensation). If the worker has multiple positions, there is no way to correctly identify which fixed compensation the 5% is based on. This will bring about consistency in how compensation plans (fixed and variable) are recorded, enhancing the ease during integration to payroll, reporting and administration of compensation in general.
Comments
For fixed pay (salary) you can assign the compensation to a position that the employee holds. For variable compensation and allowances this cannot be done and so where an employee has more than one concurrent position i.e. more than one job, it's not clear which position the allowance or payment relates to.
Category: Compensation