Linking PM/GM Ratings with Compensation

Objective

After completing this lesson, you will be able to link PM/GM ratings with Compensation

Rating Sources

Ratings are used to drive compensation recommendations. In SAP SuccessFactors Compensation, ratings can come from three different sources:

PM Rating – A rating pulled from a Performance Management form or imported.
Comp Rating – A rating manually selected within the compensation worksheet.
Employee Profile rating – A rating pulled from EP which can be used by Succession, Calibration, and Compensation.

Rating sources are displayed in the Plan Setup screen.

When using a PM form as a rating source, the system pulls the ratings by integrating with SAP SuccessFactors Performance Management. The system supports the following rating types:

Overall Competency
Overall Objective
Overall Performance
Overall Potential

Note

When using Too New to Rate in Performance Management and the same rating is required to be reflected in Compensation for guideline purposes, the rating type CANNOT be Default. Otherwise, the rating will be reflected as UNRATED.

When Performance Management is not integrated with Compensation, another way is to import the overall rating through the user data file (UDF) and map the numeric value to a corresponding rating description by using a rating scale. Comp Rating will allow planners to choose a rating from a dropdown within the compensation worksheet.

Employee Profile as a rating source requires setting up the scorecard section of Employee Profile. Ratings can be imported via Extended user information import tool and displayed in the scorecard portlet. The Employee Profile offers six rating types: four standard (Performance, Competency, Objective and Potential) and two custom.

Addition of Rating Sources

To add a new rating source, select Add New Rating Source. The form will show you the PM forms available within the system; use NONE if you will be importing the ratings.

Use For allows you to designate which planning sheet (salary or stock) will use the rating source. You can assign different rating source for each planning sheet.

Completed Only and Use Calculated Rating refers to PM forms being used.

Import Key is used when ratings are imported through UDF. Choose Scale to map the overall numeric rating value to a rating description. Set Rating Type as appropriate to the rating source being added to the compensation plan.

If using Employee Profile, choose the rating type and the effective date.

Editing and Deleting of Rating Sources

To manage rating sources, go to Plan Setup→Plan Details→Rating Sources. A list of ratings used in the compensation plan displays. Select Take Action to edit or delete a ratings source. Note that you can only edit or delete rating sources if no worksheets have been generated yet; otherwise, you will have to delete the forms first.

Create and Edit a Compensation Plan

Business Example

Create and edit budgets, eligibility, and guidelines for the current compensation plan.

ExerciseStart Exercise

Steps

Log in as the admin in SAP SuccessFactors.
Navigate to Compensation Home by using Action Search.
On the left panel, choose the 20xx compensation plan.
Go to Plan Setup→Plan Details→Budget.
In the Budget on Merit + Lumpsum row, select Take Action→Edit.
Change the Budget Value to 3
Select Update.
Go to Plan Setup→Plan Details→Eligibility.
For Merit rule, select Take Action→Remove .
For LTI rule, select Take Action→Remove.
For Options rule, make no changes.
For Salary Planning, select Take Action→Edit.
In the lower section, change rule name to Merit.
In Rule Name & Conditions, select Add.
Select the box, Review Rating.
Select Add.
Select Click to Edit.
Choose Less Than or Equal To in the criteria dropdown
Enter 2 as the value.
Select Done.
Delete ( ) the Hire Date condition.
In the right panel, Population Eligible for, select Not Applicable to Salary (TAB).
Select Not Applicable to Adjustment.
Select Save.
Select Apply.
Select Continue when prompted with a warning that the process will take a few minutes
Go to Plan Setup→Plan Details→Guidelines.
Select Add New Rule.
In the rule name, enter LumpSum.
In type, choose lumpsum.
In Formula Criteria, uncheck Rating, Benchmark, Job Level, Current Pay grade, and Budget Group.
Select +Add Custom Field.
Select Program Level in the dropdown.
In Mode, select Percentage.
In Force Default On Custom Field Change, select Yes.
In high/low Action, select Allow.
Choose Save.
Select Lumpsum→Take Action→View/Edit Formula.
Enter the information as you see in the following figure.
Select Save.

Result

This completes the exercise.

Summary

Ratings are used to drive compensation recommendations. In SAP SuccessFactors Compensation, ratings can come from three different sources: PM Rating, Comp Rating, and Employee Profile Rating.
Employee Profile as a rating source requires setting up the scorecard section of Employee Profile. Ratings can be imported via Extended user information import tool and displayed in the scorecard portlet.
To add a new rating source, select Add New Rating Source. The form will show you the PM forms available within the system; use NONE if you will be importing the ratings.
When using a PM form as a rating source, the system pulls the ratings by integrating with SAP SuccessFactors Performance Management.

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