Adding a Rating Source to a Compensation plan.

At the most basic level, a rating is an evaluation of an employee’s performance. A rating can come from any number of places:

• Performance Management Ratings: A rating pulled from a PM form or imported from an outside system.

• Compensation Rating: A rating manually selected from within the compensation worksheet.

• Employee Profile: A rating configured in the employee profile.

The SAP Successfactors Compensation Implementation Guide has complete instructions for all of these scenarios. However, instead of reviewing these steps, let's get a little more background about each method.

Employee ratings enter the system in one of the following ways:

• The system pulls ratings by integrating with SAP SuccessFactors Performance Management.

• An employee’s manager inputs a manual compensation rating into the system.

• The system pulls in ratings from a PM form but has the ability to have a manual compensation rating added.

• Customer imports rating from a third-party system.

• System pulls data from Employee profile.

The system pulls ratings by integrating with SAP SuccessFactors Performance Management:

• Used when the customer has implemented SAP SuccessFactors Performance Management and has reviews/ratings that they wish to use in the compensation planning cycle.

• Most common method for acquiring ratings.

• Adds a hyperlink to open each employee's Performance Management review form directly from the compensation worksheet.

• In order to use this method, the rating source must point to the correct Performance Management form.

Ratings are commonly displayed as text, which has a more meaningful impact than numbers.

An employee’s manager can input a manual compensation rating into the system:

• Used if a customer doesn’t use the SAP SuccessFactors Performance Management solution or (if it is their first year using it) they do not have any forms in the system.

• Manual rating is accomplished by adding the Comp Rating field in compensation template and assigning a rating scale in the XML template.

  

The system pulls in ratings from a Performance Management form and has a manual compensation rating:

• This method is not common practice.

• This requires the system to look for a form with a Performance Management rating. If a rating is not found, it allows the manager to manually attach one to the employee.

• This is a good approach to take when not all employees have PM forms, but still need to get a merit increase that is driven by guidelines.

• Add the standard pmRating and compRating fields to the compensation plan template.

The customer imports rating from third-party system:

• Used if a customer has a third-party system.

• The third-party system must track ratings.

• Ratings are loaded via the employee import file (user data file).

• The import key defines the field in the import file that will be used to populate the rating.

• Scale defines the rating scale that the imported rating will use for display.

• Guidelines can also be driven by these ratings.

Some companies have eliminated performance ratings in their employee evaluation processes. While employees may no longer have a formal performance rating, there is often a need to use other evaluation methods as the basis for compensation decisions.

The Employee Profile offers 6 rating types: 4 standard and 2 custom (Performance, Competency, Objective, and Potential).

Although similar to the existing Comp Rating, the Employee Profile ratings are integrated with both Calibration and Succession solutions, and provide the flexibility needed to enter a manual rating once, and use it for the SAP SuccessFactors solutions: Succession, Calibration and Compensation.

Make sure that Scorecard is enabled in the Employee Files layout.

Rating information can be imported through extended user information.

Information Type: Trend Information

1. Navigate to Plan Setup→Plan Details→Rating Sources.

2. Select Add New Rating Source.

3. If using the Performance Management Form:

   1. Choose the form name.

   2. Specify if the form should be completed.

   3. Specify if calculated rating.

4. If you are importing ratings from a CSV file, indicate the Import Key.

5. Choose the rating scale to be used.

Rating type only needs to be selected if No was checked for the Use Calculated Rating field. Otherwise, the rating type setting will be ignored.

• Default: Use this rating type to pull the default rating from the performance review. In most cases, this is the same as the overall performance rating.

• overallCompetency: Use this rating type to pull the overall competency rating in objcomp-summary-section of a performance review form.

• overallObjective: Use this rating type to pull the overall objective rating in objcomp-summary-section of a performance review form.

• overallPerformance: Use this rating type to pull the overall performance rating from a performance review form. Note that this is the most commonly used rating type.

• overallPotential: Use this rating type to pull the overall potential rating in perfpot-summary-section of a performance review form.

If linking multiple performance management forms, ensure that only one form is set as the default.

It is not recommended to set Completed Only to Yes. Customers may not have all their Performance Management forms completed before compensation forms are (re)launched.

If a customer uses an imported rating, change import key each year.

Ensure the ID is updated based on the form instance (the ID can be different in test and production environments).

When an employee has multiple performance reviews, the system will use the checkRatingSourceAcrossTemplates tag in the XML to determine the behavior.

• If the attribute is set to TRUE, the compensation template will pull the latest performance rating from the most recent performance review.

• If the attribute is set to FALSE, the compensation template will start with the first defined rating source to look for the performance rating. If no form is found for an employee from the first rating source on the list, it will check for the next rating on the list.

In the Admin Center, the Comp Rating field is a dropdown menu – disable it if a performance management rating exists.

If using Employee Profile:

• Choose which rating type to use

  • Supports all 4 standard (Competency, Objective, Performance and Potential) and 2 custom

  • Values shown in the dropdown are configured in the data model-background element

• Effective date

  • If the effective date does not fall between any of the start and end dates, the system returns N/A.

  • In the case of multiple ratings on the same date, the system takes the last modified.