Explaining Total Compensation

Total Compensation enables Salary and Bonus planning to be completed in one worksheet. Previously, Compensation and Variable Pay were administered in separate templates, resulting in planners opening two different forms to enter their recommendations. With Total Compensation, administrators can manage both Compensation and Variable pay using a single template, and planners are provided with a holistic view of employees’ total rewards in one form.

Total Compensation is relevant ONLY when companies:

1. Have Variable Pay implemented
2. When the Variable pay approval process is the same as the Compensation approval process
3. When Compensation is NOT using Hierarchy-Based Approval
4. When Variable Pay is NOT using Assignment-Based ratings

• Tools for SAP SuccessFactors Compensation and Variable Pay are combined to increase administrator efficiency.
• Recommendations are completed in one form.
• Fields from the Variable Pay tab can be cross-referenced in the Salary tab.
• A planner can view an employee’s complete Variable Pay calculation without leaving the Salary tab.
• A new Total Compensation template can be created using existing Compensation and Variable Pay plans as a baseline.

• Total Compensation merges Salary and Bonus planning into one form, simplifying processes and providing a full view of rewards.
• Use Total Compensation only if Variable Pay is implemented and approval processes align as outlined.
• Combine tools, cross-reference fields, and complete recommendations in a single, integrated form.
• Build Total Compensation templates using existing Compensation and Variable Pay plans as a starting point.

Based on the content in this section, please review the list of implementation decisions your company may need to make before implementation begins and discuss them with your stakeholders, project team, and SAP SuccessFactors implementation consultants. In this way, you will be better prepared to begin the implementation.

• What reporting requirements do you have?
• What would you like to see in the Reward Statements?
• When are the Compensation results communicated to employees?
• Who will have access to the Executive Review report?
• Will you use Qualtrics XM integration to collect employee & manager feedback?