Defining set bonus calculation settings

In this section, you can manage your bonus calculation structure. You cannot make any modification when a form has already been launched.

Default | None | Multiple

• Default will display all business goals in one calculation section
• None if bonus calculation does not include any business goal component
• Multiple will display business goals in multi-layer sections, rarely used

Administrators can select certain standard fields from multiple business Goal Plan sections and add them to the Personal Rewards Statement when editing a compensation statement template in the statement editor. Up to five business goal plans can be added for a variable pay plan when setting up bonus calculations.

Variable Pay supports additive and multiplicative bonus structure, where the components are either aggregated or multiplied.

Bonus calculation has 4 components which determine final payout.

• Base - refers to the bonus target amount.
• Business performance (optional) – refers to the calculated result of the business goal section
• Team performance (optional)– refers to the result of the team goal section commonly sourced from SAP SuccessFactors Performance Management
• Individual performance – refers to the result of the individual goal section commonly measured sourced from SAP SuccessFactors Performance Management

Team and Individual performance can pull data from the following sources:

• Performance Management (PM) – Most common. Template selection and rating type is available to be added
• Employee Profile – Rating type and effective date need to be selected
• Import by employee – Ratings can be imported via master user file (UDF)
• Import by Assignment History – Ratings can be imported via History data

This refers to the Objective variable pay template configured during implementation. This template defines the structure of the Business Goals file. Whenever the plan is copied, a new objective variable pay template is created in the back-end and reduces consulting/ticket maintenance.

Basis which refers to the bonus target amount can be determined using the following options:

• Imported column from User Data File – Used for point in time calculation. Typically variable pay target amount is calculated on base pay on each assignment. However, many companies due to business process or certain country regulations, calculates their base target amount as of a particular date instead of assignment effective date. Example, year-end salary is the base target amount no matter how many assignments and salary changes the employee had during the year.
• Imported column from Employee history data file – Used for calculating effective-dated base target amount.
• Custom formula – Base target amount is calculated within the system, using numeric fields that were created in Succession Data Model.

This section manages the rating sources that will be used for the plan.

• Is this Bonus Program based on Assignments? Assignment-Based Rating allows you to assign different performance forms per assignment and calculate the bonus payout based on the different employee's assignments during the year. Additional settings are required if ABR is selected.
• Individual– Defines the data source to be used for Individual Performance Rating
• Performance Management – ‘Overall Rating’ (overallCompetency | overallObjective | overallPerformance | overallPotential) is commonly used when SAP SuccessFactors Performance Management is implemented in the system.
• Employee Profile – Refers to scorecard created in Employee Profile
• Import by Employee – Ratings can be imported using UDF
• Import by Assignment History – Ratings can be imported using Employee History Data File
• By Employee – So that the total payout amount for the employee cannot exceed a pre-configured percentage of the sum of the prorated target amounts for the employee

• The bonus calculation structure in SAP SuccessFactors cannot be modified after a form is launched. Business goals can be displayed in one calculation section, none, or multiple sections depending on the bonus structure requirements.

• The bonus calculation involves four primary components: base (bonus target amount), business performance, team performance, and individual performance. Each component's data can be sourced from Performance Management, Employee Profile, or imports via UDF or history data.

• The Basis Calculation Equation determines the bonus target amount, using options like imported columns from the User Data File or Employee History Data File or a custom formula. The Goal Plan Name refers to the Objective variable pay template configured during implementation.

• Rating Configuration manages rating sources for the plan, allowing assignment-based ratings for performance forms. Bonus caps can limit payout amounts, either by employee or by bonus plan, ensuring adherence to pre-configured limits.