Defining the SAP SuccessFactors Variable Pay Terminology

Objective

After completing this lesson, you will be able to define the terminologies of SAP SuccessFactors Variable Pay.

Terminology

TermDefinition
Employee Demographic DataThe standard data set imported into the system by user import. This data is used throughout SAP SuccessFactors within all modules.
Employee Compensation DataThe additional data imported into the system for compensation purposes (e.g., current salary, pay grade).
Employee Historical DataThe additional data imported into the system for employee bonus purposes. This data may contain one or more records per employee. This data is very customer-specific; it includes basis data and eligibility-related data. Each row of Employee Historical Data contains a start date and end date, and an employee can have multiple rows of historical data to reflect time in different positions. This data is used only with SAP SuccessFactors Variable Pay.
Assignment

The attachment of an employee to a bonus plan for a specific time interval. This assignment is determined by applying the compensation plan eligibility rules to the employee historical data for each bonus plan and employee using application-specific rule scenarios.

Note

An employee can be eligible for more than one bonus plan per time period and thus occupy two or more assignments at once.

An assignment is also created when the target changes or the goal results are tied to changes. You can audit changes made to the Assignment fields in your Variable Pay Plans.

Assignment BasisThe base amount used to calculate bonuses for a specific assignment. It can be imported as local currency. For example, if an employee has a salary of $100,000 and a bonus target of 10%, the basis would be $10,000.
Assignment Proration

The coefficient that represents the portion of the employee’s time in the assignment over the total review period.

For example, if the review period is 365 days and the employee assignment for a particular bonus plan is 182.5 days, then the assignment proration would be 182.5 days/365 days = 0.5.

Business GoalFinancial goals defined at the company level (e.g., Revenue/Profit).
Individual/Team GoalsObjectives assigned at the employee level normally pulled from Performance Management forms.
Goal Weight

Each goal is weighted in relation to the other goals in an assignment. Per default, the sum of all goal weights in an assignment must be 100%.

The goal weight is multiplied by the assignment target amount to determine the goal basis. The bonus plan/ business goal relationship determines the default goal weight. The goal weight can be changed per assignment.

ExceptionAn occurrence when the employee history data in the system is replaced by employee history data imported by the administrator.
OverrideAn occurrence when parts of the calculated bonus data are replaced by values manually inserted by the administrator.
Bonus Cap PercentA percentage defined at the bonus plan level that represents the maximum bonus allowable for that bonus plan assignment. The application multiplies the bonus cap percent by the assignment target amount to determine the bonus cap amount.
Bonus Cap AmountAn amount that represents the maximum bonus allowable for that bonus plan assignment. The application multiplies the bonus cap percent by the assignment target amount to determine the bonus cap amount.

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