Workday-Pro-Compensation WorkdayProCompensationExam Free Practice Exam Questions (2025 Updated)

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.

When an employee undergoes aChange Job(e.g., transferring between supervisory orgs), Workday triggers thePropose Compensation Changebusiness process if compensation is impacted.

This allows HR/Comp to adjust salary, allowances, or other plans based on the new job/org details.

Why not the others?

A. Propose Compensation Offer→ Used duringhire/recruiting offers, not job changes.

B. Request Compensation Change→ Typically a standalone process, not triggered automatically by Change Job.

C. Propose Compensation Hire→ Used athire events, not transfers.

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.

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.

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.

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.

Acompensation packageis a grouping of multiple compensation plans (salary, allowances, one-time payments, bonuses, etc.).

Workday allows you tobundle one-time payment plansinto a package (e.g., relocation bonus, signing bonus).

Why not the others?

A. Retirement plan→ Benefits plans are not part of comp packages.

C. Calculated plan→ Standalone, not typically added to comp packages.

D. Future payment plan→ Not a Workday plan type.

ForTotal Cost (India), the requirement is that only50% of total compshould be allocated towardsalary plans.

This is achieved by using theManage Basis Total option, where you can set maximum percentages for specific plan types (e.g., Salary = 50%).

This ensures salary stays capped at half of total, regardless of other components.

Why not the others?

A. Fixed compensation basis→ Doesn’t handle percentage capping.

B. Remove retirement plans→ Irrelevant; retirement can stay, the key is controlling salary %.

D. Change ranking to 50→ Ranking only determines basis priority, not limits.

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.

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.

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.

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.

Employees requestingone-time payments for selfmay see sensitive options likeGross UporSend to Payroll.

To prevent them from updating these fields, configureOptional Fields for Request One-Time Payment for Selfand hide the checkboxes.

This limits their visibility and update access without affecting manager/HR workflows.

Why not the others?

A. Optional Fields for Request One-Time Payment→ Applies to manager/HR use, not self-service.

C. Remove Employee as Self from self-service comp domain→ Would block employees from initiating requests entirely.

D. Payroll security domain→ Payroll security doesn’t control compensation request UI fields.

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.

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.