Describing Hierarchy-Based Approvals

Objective

After completing this lesson, you will be able to explain the Hierarchy-Based approval process.

Hierarchy-Based Approvals

Hierarchy-Based Approvals is an alternative method for managing the compensation planning approval process that does not use a route map. This method allows the compensation manager to drill down through an organization to view the decisions that have been made. Once the manager is satisfied, a single button allows them to approve all for their entire organization.

It is important to note that hierarchy-based approvals are invalid for Variable Pay configuration. If you plan on using Variable Pay, this may not be recommended to prevent confusion among end users about having two separate approval mechanisms. Be sure to discuss fully with your implementation consultant if you think this method is one your company should consider using.

This screenshot shows an example of the hierarchy-based approval method.

Decisions Checklist Exploring the Compensation Planning Process

Based on the content in this section, please review the list of implementation decisions your company may need to make before implementation begins and discuss them with your stakeholders, project team, and SAP SuccessFactors implementation consultants. In this way, you will be better prepared to begin the implementation.

  • In your organization, what time frames are optimal for compensation planning?
  • In your organization, what is the compensation process? Who has approval and review responsibility?
  • Is there a possibility that this process should change? Who would make that decision? What other considerations do you have?
  • Who in your organization will have Executive Review privileges? Will they also have edit privileges?

Summary

Hierarchy-Based Approvals:

  • Offer a streamlined approach for managing compensation planning approvals without utilizing a route map system.
  • Enables compensation managers to drill down through the organizational hierarchy, reviewing and verifying all compensation decisions made across different levels.
  • Managers can approve all decisions for their entire organization with the click of a single button, ensuring efficiency and broad oversight.