SAP SuccessFactors has a set of standard functions that support the majority of implementations. Complex configuration is possible if required.
Proration
Paying proportionate employee increases correctly from their hire date or the last review date can be done. Prorating can be applied to a single component increase or the aggregate. The two prorating types are Salary Prorating and Raise Prorating.
Raise Prorating: This will prorate the aggregate increase to salary, and the proration percentage will be applied to Merit, Adjustment, and Promotion.
Salary Prorating: Can be applied to a single increase component (e.g., prorate merit, but no adjustment). The percentage of proration can also be applied to the budget.
Option 1: Raise Proration
The planner enters the full amount. The system calculates the prorated total amount at the end. Totals rows and budget not affected.
Example: Proration = 50%
| Level | Without Proration | With Raise Proration |
|---|---|---|
| Merit Guideline: | 4-6% | 4-6% |
| Planner enters increase Amt: | 2,000 | 2,000 |
| Total Increase: | 2,000 | 1,000 (system calculates at end) |
Option 2: Salary Proration
The planner enters the prorated amount. The system prorates guidelines.
Example: Proration = 50%
| Level | Without Proration | With Salary Proration |
|---|---|---|
| Merit Guideline: | 4-6% | 2-3% |
| Planner enters increase Amt: | 2,000 | 1,000 |
| Total Increase: | 2,000 | 1,000 (based on planner entry) |
Option 1: Date Calculation
With Date-Based proration, SAP SuccessFactors Compensation calculates the proration percentage based on what was specified as the start and end dates of the compensation planning period and the start date and end date of the employee in the role.
Example: Review period as 1/1/2019 – 12/31/2019 or 365 days.
Option 2: Enter Percent on Employee Import File
Calculate the percentage outside of the system and import.
Hint
You will work with your implementation consultant to determine the proration option that works best for your organization.