Choose who an incentive plan rewards, check that each person has exactly one matching variable compensation on their contract, and fix missing or duplicate compensations before payouts are sent. The people in a plan are sometimes called participants or eligible employees. Each person's bonus amount comes from the Amount up to value of their variable compensation, not from the plan.

Before you start

• You need the Manage incentive plans permission.
• To use Add compensation to contract, you also need permission to edit the person's contract.
• The plan's Payroll concept must be set in the Basic information step.

What a "matching" variable compensation is

A person's variable compensation matches an incentive plan when all of these are true:

Steps

Choose the people of a draft plan (admin)

1. Go to Compensation > Incentive plans and open the draft plan.
2. In the Basic information step, under Add people, choose Whole company, Legal entities, Teams, Roles or People.
3. Select the legal entities, teams, roles or people, and click Save.
4. Open the People step. Everyone who matches the selection is listed with Name, Alerts, Job title, Payroll concept, Variable amount and Next payment.

Change the people of an active plan (admin)

1. Go to Compensation > Incentive plans and open the active plan.
2. Open the People tab.
3. Click People to open Manage people.
4. Add or remove legal entities, teams, roles or people, and click Save.

The People button isn't available when the plan applies to the Whole company.

Fix a missing compensation (admin)

A person shows Missing compensation when they have no matching variable compensation. A banner at the top reads, for example, "Ana García is missing Sales bonus compensation in the contract".

1. In the People step (draft) or People tab (active), open the actions of the person with Missing compensation.
2. Click Add compensation to contract.
3. Enter the Amount up to value, for example €4,000.
4. Check the First payment month. Factorial suggests the first month in which the plan can pay.
5. Click Save. The message "Compensation added — it will appear in the plan shortly" confirms it.

If you can't edit the person's contract, use Go to contracts or Go to Organization and add a variable compensation with the plan's payroll concept, recurrence and an Amount up to value from the contract.

Fix a duplicate compensation (admin)

A person shows Duplicate compensation when more than one variable compensation on their contract matches the plan.

1. Open the actions of the person with Duplicate compensation, or click Review on the banner.
2. Click Choose compensation.
3. In Duplicate compensation, select the compensation to keep in the plan. The other one is discarded from the plan.
4. Click Save.

Remove a person from a plan (admin)

1. Open the actions of the person in the People step or People tab.
2. Click Remove from plan (draft) or Remove person from plan (active).
3. Confirm. The person is removed from the plan for all periods that haven't been sent to payroll yet. This can't be undone.

Rules and behavior

• If a person joins a team, legal entity or role that a plan applies to, then the person is added to the plan automatically. This applies to Draft and Active plans, not to Archived plans.
• If a person leaves a team, legal entity or role that a plan applies to, then the person is removed from the plan automatically.
• If a person's variable compensation is added, changed or deleted on their contract, then the plan updates the person's compensation and alerts automatically.
• If a person's matching variable compensation is used by another plan that isn't archived, then it isn't available for this plan.
• If a plan is archived, then its variable compensations are released and can be used by another plan.
• If a person is deleted from Factorial, then they are removed from every incentive plan.
• If a period has already been sent to payroll, then removing a person doesn't change that period's payouts.
• If a payout for the plan is being calculated, then people can't be removed until the calculation finishes.
• If any person has a missing or duplicate compensation, then the period can't be sent to payroll until the issue is fixed or the person is removed.

Limitations

• You can't combine selection types in one plan, for example teams plus hand-picked people.
• You can select up to 17 Teams, 17 Legal entities or 10 Roles. People has no limit.
• You can't set a different bonus amount inside the plan. To change someone's amount, change the Amount up to value of their variable compensation on the contract.
• You can't add someone who doesn't match the selection, except by switching the plan to hand-picked People.
• You can't change the people of an archived plan.
• Inactive employees are not included.

Troubleshooting

• Symptom: "Ana shows Missing compensation even though she has a bonus on her contract." → Cause: Her variable compensation has no Amount up to value, a different recurrence, a different payroll concept, or it's already used by another plan. → Fix: Edit the compensation on her contract so it matches the plan, or use Add compensation to contract.
• Symptom: "I added the compensation but the alert is still there." → Cause: The plan updates in the background. → Fix: Wait a few moments and refresh the page.
• Symptom: "The Add compensation to contract option is missing." → Cause: You can't edit that person's contract, or their legal entity has no currency. → Fix: Ask someone with contract permissions, or use Go to contracts.
• Symptom: "The First payment field says Compensation won't be included in the first payment period." → Cause: The first payment month falls inside a plan period, so the compensation doesn't cover that period in full. → Fix: It will be applied from the start of the following period. Choose an earlier First payment month if you want it to count for the current period.

FAQ

1. Do new hires join the incentive plan automatically?

Yes, if the plan applies to their team, legal entity, role or the whole company, and the plan isn't archived. They still need a matching variable compensation to be paid.

2. Where do I set how much bonus each person can earn?

On each person's contract, as the Amount up to value of the variable compensation with the plan's payroll concept.

3. Can someone be in two incentive plans?

Yes, if each plan uses a different variable compensation from their contract.

4. What happens if I remove someone after Q1 was paid?

Their Q1 payout stays as sent. They aren't paid in the periods that haven't been sent yet.

5. Why can't I click People on my active plan?

The plan applies to the Whole company, so there's nothing to add. Use Remove person from plan to take someone out.