Describing SAP SuccessFactors Compensation

SAP SuccessFactors Compensation is a system designed to standardize compensation planning for managers. Compensation professionals are assured that rewards are calculated correctly and fairly to help retain top performers.

It is a template-based salary and long-term incentive (stock) planning solution which provides the following benefits:

• Eliminate manager bias
• Increase insight with metrics
• Improve budget and regulatory compliance
• Assure data integrity

SAP SuccessFactors Compensation provides managers with relevant information for planning decisions on salary, promotions, equity, and stock adjustments according to individual, group, or company-wide guidelines. It is intuitive and highly configurable, allowing your organization to tailor it to your business processes.

The employee data in SAP SuccessFactors Compensation can come from an internal or external HRIS. Employee data are directly mapped to Compensation when Employee Central is used as HRIS. When using an external HRIS, employee data can be uploaded in CSV format manually, via an SFTP process, or an API. Your SAP SuccessFactors implementation consultant will either assist in mapping fields for EC-integrated customers or provide detailed integration specifications if using a flat file approach or other integration.

The SAP SuccessFactors Compensation tool can be used with Performance Management to link job performance with compensation awards effectively. Performance information can be made readily available to planners when making compensation decisions.

Automated merit increases can be implemented based on guideline calculations such as job level, pay grade, performance rating, compa-ratio, and range penetration. You can also automate lump sum disbursements and automatic rollovers of merit to lump sum if the salary range is exceeded.

1. Document your process prior to the kickoff: This does not need to be a detailed document, but you should have a high-level overview that may be passed along to the consultant.
2. Keep your workflow simple: This is especially true for your first year. Consider the approval levels, which can lead to higher-level managers getting numerous emails. Complex approval processes, such as iterative and steps requiring signatures for certain exceptions, could lead to a prolonged process.
3. Provide a dedicated resource: Your Compensation department may be small relative to the overall organization, and compensation analysts and managers are typically taxed with numerous high-level projects that prevent them from fully comprehending what they expect to learn during implementation.
4. Identify the system admin before or during project kickoff: This allows the consultant time to have the admin practice and demonstrate their knowledge.
5. Ensure that the implementation team has easy access to key stakeholders: Ideally, these stakeholders should be involved in the project and be authorized to make any necessary decisions when needed.
6. Have your own (internal) discussions to map out current processes and roles: Taking the time for this first step helps ensure that these roles will be translated into Role-Based Permissions (RBP) accordingly.
7. Keep the repurposing of system fields and functionality to a minimum: SAP SuccessFactors is very flexible and allows for the repurposing of many items to meet a client’s needs. However, overuse of this flexibility may cause problems with future implementations because other modules may require certain functionality. When there is no other option, these changes should be well-documented and easily accessible by future consultants.
8. Review the latest release information as upgrades and enhancements occur: However, future functionality is not in scope during an implementation.

• SAP SuccessFactors Compensation streamlines salary and long-term incentive planning, ensuring that rewards are calculated correctly and fairly to help retain top performers.
• The tool helps eliminate manager bias, enhances insight with metrics, improves budget and regulatory compliance, and assures data integrity.
• Employee data can be sourced from internal or external HRIS systems, with options to directly map using SAP’s Employee Central or importing via CSV, SFTP, or API when using non-SAP systems.
• Offers intuitive, highly configurable interfaces that provide managers with essential information for planning decisions, aligning compensation with individual and company-wide guidelines.
• Integrates seamlessly with Performance Management, allowing automated merit increases and linking job performance to compensation awards for effective decision-making.