Configuring SAP SuccessFactors Variable Pay

SAP SuccessFactors Variable Pay setup has four main process steps: Configure, Import, Calculate, and Set Permissions.

Configure process steps:

• Create the Variable Pay program and configure properties, including:
  • Name, dates
  • Hierarchy, Set ID
  • Bonus Cap behavior
  • Performance Rating source
  • Legal notice text
• Configure Guidelines
  • Rating scale mapped from the Performance Rating source
  • Enter values for Min, Tgt, Max
  • Values drive Performance % Modifier, whether editable or read-only
• Configure Override Permissions
  • Determines whether certain roles may override the calculated payout in the Manager View form

Import process steps:

• Import User Data
  • Required for Manager hierarchy, report filtering
  • Employees in the Variable Pay Employee History file must exist in the User Directory first
• Import Business Goals and Validate
  • Assignment start and end dates, basis, bonus plan codes, and guarantee codes
  • Validate with the Business Goal Performance report
• Import Variable Pay Employee History data
  • Assignment start and end dates, basis, bonus plan codes, and guarantee codes
  • Validate with Employee History report

• Configure/Import Bonus Plans
  • Bonus Plan data
  • Plan name
  • Eligibility rule
  • Caps
• Manage Eligibility Rules
  • Import Eligibility data
  • Eligibility rules per plan based on the selected data element in Emp History
  • Validate
• Import Business Goal Weights
  • Import weights and mappings
  • Validate with Business Goal Weights report
• Modify or Create New Number Formats
  • Create number formats for: money, amounts, percents and ratings.

• Set Number Formats
  • Assign formats to various numbers

Calculate process steps:

• Calculate Bonus Payout
  • Creates "Pay Items"
  • Provides data for Bonus Payout Details report and Individual Preview
  • Can filter calculations by Bonus Plan, Manager and other fields when calculating

• Validate Calculations
• Set Permissions
• Run Report and Preview Calcs on Screen
  • Bonus Payout Details
  • Individual Preview
• Configure Label Names and Visibility
  • Set permissions to view data by role for Assignments, Business goals, and Performance fields
  • Customize labels for fields
• Manage Live Profile View Visibility
  • Hide or display Individual View in Live Profile
• Manage Personal Goal Statement Template
  • Upload template for goal statements
  • XSL file
• Generate Personal Goal Statements
  • Generate statements for each
  • Program template
  • Goal statement template

Permissions process steps:

• Manage Variable Pay Executive Review Permission
  • Grant read or edit permissions
  • Revoke read or edit permissions

Role-Based Permissions (RBP) allow you to control access to applications in the SAP SuccessFactors suite via Permission Groups and Permission Roles. Permission Roles define what is allowed; Permission Groups define who is allowed to do it (granted users) and for whom (target users).

Granular permissions can be provided according to administrative needs and the appropriate population. Most rights can also be restricted by the target population, allowing for distributed administration of the process.

You may also wish to control the visibility of bonus information at the column level. For example, there may be a column that you wish HR could edit, but a manager would only have read-only permission.

Developing the necessary roles for the compensation process and assigning the appropriate permissions requires careful consideration.

However, this important step is often quickly skimmed over during the design process.

Time should be spent walking through the needs for each module and role (e.g., managers, individual contributors, system administrators, HR staff, etc.).

• The four main steps to set up Variable Pay include Configure, Import, Calculate, and Set Permissions.
• Role-Based Permissions control who can perform specific actions and for which target users.
• Granular permissions enable customized rights based on roles, target populations, and administrative needs.
• Assign permissions carefully by assessing each role's needs to ensure an effective compensation process.