A compensation cycle has different stages, and each stage includes processes which may differ for each customer. This section aims to give you a baseline for your own compensation cycle and the recommended steps on how to optimize the functionality of SAP SuccessFactors Compensation Management.
Review – To prepare for your next cycle, conduct a lesson-learned session at the end of the cycle. The Review phase is recommended to start within a month of completing your last cycle. General steps during this stage include the following tasks:
- Keep a detailed spreadsheet with all feedback (structured and informal) on the tool from managers, HR partners, stakeholders, system administrators, and customer support.
- Review any plan or compensation requirement changes for the next cycle.
- Review new functionality in Compensation. Determine what you will like to leverage for the next cycle.
Plan – This stage is when you determine the process changes or system functionalities to be adopted for next cycle.
- Identify resources to make changes for next cycle (Administrators, Professional Services, Partners, Customer Success).
- Develop project plan and timelines.
- Consider and plan for change management.
- Determine communication.
- Determine training.
- Determine feedback for measuring success.
- Determine long-term adoption.
Configure – This stage is when you implement the changes in your testing or staging environment. You can copy the template from production to test environment to start the configuration.
- Implement design changes and new functionality.
- Implement Compensation Statement changes – Note that it is recommended to set up a new template for each cycle. Also, it's recommended to implement after templates have been fully tested.
End-to-end testing is recommended. Always test forms.
Caution
Migrate/Go Live – After full testing has been conducted in staging, you can migrate the template to production environment.
- Review data to ensure manager and employee data is correct.
- Ensure all settings, tables, and so on are correct before launch.
- Roll out change management communications, training, and documentation.
- Launch forms.
Planner Recommendations – This stage is when planners start to work on the compensation forms. Planners are responsible for:
- Entering recommendations on the salary and stock sheets.
- Submitting a planning sheet through the route map.
- Approving route maps.
Close-out Cycle – Once forms are completed and approved, either planners and/or admins generate compensation statements for employees.
- Publish data.
- Create rewards statements.
- Generate reports.