Companies use various factors to determine each employee's overall budget. Some organizations have formal procedures for establishing the compensation budget; others have simple, flat percentage increases.
SAP SuccessFactors Compensation can mirror the calculation so planners can see the allocated amount for their teams. The team budget is displayed in the form. The budget can also be a soft budget where overspending is allowed but would be displayed in red text so those in approval levels could see. Conversely, the budget can be enforced by forbidding entries outside budget parameters.
There are multiple ways to handle budgets. Your implementation consultant will work with you on the best approach based on your requirements.
