Exploring SAP Successfactor Compensation

Objective

After completing this lesson, you will be able to define the terms used in SAP SuccessFactors Compensation.

Terms and Definitions

Throughout training, you will be presented with terms that are specific to SAP SuccessFactors Compensation. Before discussing SAP SuccessFactors Compensation in more detail, it is important that you become familiar with these terms. The table below lists the terms and definitions associated with SAP SuccessFactors Compensation.

Term	Definition
Compa-Ratio	Defines the employee’s pay as a percentage of the midpoint in the salary range. For example: (Current_Salary/Midpoint) * 100.
Compensation Administrator	Person/s responsible for configuring and monitoring a compensation cycle.
Compensation Form/worksheet	The planning sheet created for the each planner based on the Compensation Plan Template.
Compensation Plan Template	The record that contains the compensation configuration for a Compensation Cycle. For example: planning sheet fields, performance rating source, eligibility, guidelines, budgets, instructional text, and so on. It is recommended that you create a plan template for each compensation cycle.
Compensation Program	This is the specific method of employee compensation for salary, bonus, or stock. For example: merit, promotion, lump sum, and adjustment are programs for the salary sheet. Objective-based bonuses are available on the bonus sheet. Finally, stock, units, and options programs are displayed on the stock sheet.
Current Salary	Annualized salary paid to the employee.
Cycle	A compensation cycle encompasses one complete compensation process: from the time administrators research and configure, through the time that recommenders/approvers use the planning sheet to recommend and approve increases, to the time when compensation statements are generated.
Eligibility	Determines the employees who can participate in a compensation program. Employees are made eligible in the employee data file and/or the Compensation Plan Template.
Guidelines	The expected range of a recommendation based on a performance rating and/or other criteria.
Planner	A person who is authorized to recommend compensation changes for employees. The planner structure can follow the system default reporting structure, a second reporting structure built specifically for compensation in the employee data file, or by allowing high level manager or admins to select the compensation planner.
Planning Sheet	A list of employees where a planner makes compensation recommendations for salary, bonus, and stock.
Range Penetration	The level of an individual pay compared to the total pay range, rather than compared with the midpoint. For example: (Current_Salary–Minimum)/(Maximum-Minimum).
Salary Pay Matrices	A list of pay grades and the associated min, mid, and max salary values. This is used to calculate the employees range penetration, compa-ratio, and display the salary range.
Salary Proration	The calculation of the eligible amount of salary based on a date range or an uploaded percentage. The recommendation is based on the prorated salary amount. Guidelines and budgets can be configured to use the employee’s prorated amount.
Salary Rate Type	The pay type of the employee (For example: salary or hourly.)

Navigate the Compensation Tools

Business Example

Navigate the Compensation Home interface and the Compensation inbox.

Note

If you're learning this module as part of the SAP Learning Class, use the login credentials provided by the instructor; otherwise, you can use any demo environment, but the steps provided in the exercises may vary depending on what is configured in the environment.

ExerciseStart Exercise

Steps

Log in to SAP SuccessFactors as an administrator.
Type Compensation Home in the Search for Actions or people box (top right).
On the left panel, scroll down and select Compensation Plan from the plan list.
Explore the plan information on the summary page.
1. How many worksheets have been launched?
2. What is the progress status of the route map?
3. Can you see the budget and eligibility information?
Select the Plan Setup tab.
Explore each menu of the sub tabs to familiarize yourself with the tools you will use later.
Select Manage Worksheets.
Explore the different options that you see on the page.
Select Complete Compensation Cycle.
Explore each menu of the sub tabs to familiarize yourself with the tools you will use later.
Using the account navigation menu (click the user photo), select Proxy Now.
Enter CarlaGrant as Target User.
Select Ok.
In the main navigation menu (Home dropdown), select Compensation.
Select Compensation Plan Carla Grant, which opens the worksheet.
Explore the different elements of the worksheet.
1. What happens when you select the rating of an employee?
2. What can you see when you select the employee’s name?
3. Can you figure out where the budget amount is coming from?
4. Why is Brenda Davis’s information grayed out?

Result

All these elements will be discussed in the succeeding chapters of this guide.

This completes the exercise.

Summary

The terms and definitions can be categorized into four main groups: Compensation Structure and Metrics, Compensation Roles and Responsibilities, Compensation Planning and Tools, and Compensation Process and Criteria.
These logical groupings help in understanding the different facets of compensation management, linking roles, planning tools, structures, and processes essential for creating effective compensation systems.

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