Navigating the Reward to Retain Overview

The Reward to Retain Architecture Leading Practice (ALP) depicts the entire business process of instilling a true pay-for-performance culture by tying continuous employee performance with rewards and improving employee engagement by ensuring fair, objective compensation decisions with calibration tools.

The Reward to Retain Architecture Leading Practice (ALP) will do the following:

• Explain the HR process areas and how multiple modules support the end-to-end process of Reward to Retain
• Explain the business value of each scenario
• Summarize how SAP SuccessFactors modules are integrated from a data and process point of view
• Summarize the various design planning considerations for Reward to Retain

In the Reward to Retain ALP, there are several process interactions with SAP SuccessFactors modules, including:

1. Employee Central to People Profile
2. Employee Central to Compensation Management
3. Employee Central to Variable Pay
4. Employee Central to Reward and Recognition
5. People Profile to Performance Management
6. People Profile to Compensation Management & Variable Pay
7. Performance Management to People Profile
8. Compensation Management & Variable Pay to People Profile
9. Goal Management to Continuous Performance Management
10. Goal Management to Performance Management
11. Continuous Performance Management to Performance Management
12. Performance Management to Calibration
13. Performance Management to Compensation Management
14. Performance Management to Variable Pay
15. Compensation Management & Variable Pay to Employee Central
16. Compensation Management to Calibration
17. Reward and Recognition to Employee Central

You will see this HCM Suite Process image in each unit (as shown below), highlighting the associated business values, key process interactions, and key data interactions for each Architecture Leading Practice (ALP). Remember, the rectangular modules are color-coded to indicate distinctions between the module types.

• Business Value: Outcomes from streamlined processes such as effective talent acquisition, top talent retention, and improved efficiencies.
• Key Process Interactions: Cross-module set providing synergistic, business value outcomes driven by processes.
• Key Data Interactions: Building blocks of information that help facilitate the attainment of outcomes.

The Reward to Retain Architecture Leading Practice (ALP) employs the following value propositions:

• Evaluate and recognize top talent, align your strategies and goals, and continuously improve workforce performance
• Attract, engage, and retain top performers
• Align employee compensation to business strategy in line with company guidelines
• Build strategic compensation rewards and recognition programs that improve individual and business performance

The Reward to Retain portion of Talent Management relies on multiple modules within the SAP SuccessFactors HCM Suite, including Employee Central, Goal Management, Performance Management, Compensation, Variable Pay, and Employee Profile.

• Rewards & Recognition: Employees need to be attracted, motivated, and retained. By recognizing desired behavior and performance, employers show appreciation for the demonstrated performance and motivate employees and their peers.
• Salary Review: Managers use a streamlined and standardized merit cycle process to adjust employee salaries in an integrated dashboard. Salary adjustments follow rules and budgets set by the employer and often utilize the results from performance reviews as a key for budget distribution.
• Short-Term Incentives: Short-Term Incentives often include commissions and bonus schemes to attract, motivate, and reward employees. They help align the employee‘s behavior with the employer‘s expectations. As a result, employees often shift their focus from processes to outputs.
• Long-Term Incentives: Long-Term Incentives focus more on long-term retention of top skills. Typically, long-term incentives include share schemes (of various types) and economic value-added (EVA) schemes. For managers, the result is often a shift towards sustainable planning.​

• The Reward to Retain process depicts the entire business process of instilling a true pay-for-performance culture by tying continuous employee performance with rewards and improving employee engagement by ensuring fair, objective compensation decisions with calibration tools.
• There are multiple Reward to Retain Architecture Leading Practice (ALP) value propositions, including evaluating and recognizing top talent, aligning your strategies and goals, and continuously improving workforce performance, and attracting, engaging, and retaining top performers.