Calculating Salary Benchmarks

Objective

After completing this lesson, you will be able to explain salary benchmarks.

Benchmarks for Salaries

SAP SuccessFactors offers the following benchmarks, which are both calculated using the employee data and the pay matrix data:

Compa-ratio: Defines the employee’s pay as a percentage of the midpoint in the salary range.

Range Penetration: The level of an individual’s pay compared to the total pay range, rather than compared with the midpoint.

Either or both of these can be displayed on the compensation worksheet. A choice of one of these may optionally be used as part of the criteria for guidelines.

This screenshot compares Compa-ratio and range penetration benchmark options.

Note

Both compa-ratio and range penetration in SAP SuccessFactors are calculated from base pay salary ranges. If your salary ranges are built based on Total Compensation, notify your implementation consultant so that they can review options for incorporation.

Summary

  • SAP SuccessFactors offers the following benchmarks, which are both calculated using the employee data and the pay matrix data: Compa-Ration and Range Penetration.
  • Both compa-ratio and range penetration in SAP SuccessFactors are calculated from base pay salary ranges.
  • Either or both pay matrix data can be displayed on the compensation worksheet.