Exploring the Variable Pay Cycle and Workflow

Objective

After completing this lesson, you will be able to describe the Variable Pay cycle, forms, and route maps.

The Variable Pay Cycle and Forms

SAP SuccessFactors Variable Pay is a form-based system. For every bonus cycle, a Variable Pay Plan Template is created. The template combines all the elements necessary for bonus planning, such as functional currency, exchange rates, rating sources, eligibility rules, guidelines, budgets, and bonus data files.

The template is given a name that quickly identifies it. For example, you might call a template 2024 Bonus Plan. This template is then used to generate the planning forms.

This image shows multiple forms can be created from one template.

When a form is launched, it is routed to the person responsible for planning the compensation for a specific group of people. The form contains bonus data and links to Employee Profile or Employee Central data only for that group. The form is named for the person who is responsible for the planning. For example, 2024 Bonus Plan for Carla Grant (cgrant).

Executive Review

Administrators can enable advanced filters on forms (worksheets) for flexibility in viewing variable pay data. On a worksheet, select the Filter to access the Create Filter button. Once Create Filter is selected, the dialog for creating filter opens up. On the popup, set conditions and criteria filters.

Pop up displays Create Filter function to manage filters that can be saved for future use.

Variable Pay Form Fields

Let’s look at the various fields of the Variable Pay form.

Variable Pay Form

A software interface displaying employee variable pay details, with sections for business and individual targets, goal names, weights, payout calculations, collapsible columns, and floating budget panels.

Form Columns: Sections

Form Sections (Levels)

  • Entry-Level

    • Support standard and custom columns

      In the case of custom columns, validations for Entry Level fields in a variable pay templates apply as in SAP SuccessFactors Compensation.
    • Entry level field option includes functionality to determine level of validation: No validation, Warning or

    • Groupings and column order are configured in Column Designer

  • Assignment Details Level

    • Order of fields is configured in the background element

    • Data is pulled from the employee history data file

  • Calculation Level

    • Fields are configured under Label Names and Visibility

    • The order of fields is not customizable

Note

Most of the levels and columns are collapsible to save screen space.

Form Columns: Editors

There are two tools to arrange or design the worksheet:

  1. Label Names and Visibility

    • List all the standard fields for Variable Pay, select the visibility and labels as required by customers

    • Standard fields are grouped into different levels – use checkboxes to display/hide levels

  2. Column Designer is used for:

    • Sorting and grouping standard fields

    • Adding Assignment Level custom fields

    • Customizing budget row labels

    • Configuring Custom Views

    A Plan Setup interface showing options for configuring label names and visibility. Sections include Assignment, Business Goals, Business Goal Performance, Team Performance, Individual Performance, Total, and Custom Fields.

Form Columns: Assignment

  • Displays on Employee History

  • Columns:

    • Assignment Basis – Basis amount

    • Target Percent 1–4 – Bonus plan target percentages

    • Proration – Calculated percent based on Start/End and Program Dates

    • Target Amount – Prorated basis amount

    • Multiplier – Applied multiplier

  • Assignment table with columns for SuccessFactor Name, Customer Name, and selection checkboxes. Rows include fields like assignment basis and target amount. User's details visible on the left sidebar.

Form Columns: Business Goals

  • Displays in Business Calculation

  • Columns:

    • Business Goal Header – Title of the Business Calculation Section

    • Business Section Amount – Section Weight x Target Amount

    • Goal Name

    • Goal Weight

    • Goal Basis – Business Section Amount x Goal Weight

      A table displaying business goals with sections for goal weight, basis, minimum, maximum, target, achievement, payout percentage, and amount. Another panel shows options to configure label names and visibility.

    • Goal Results – Actual result value for the Business Goal

    • Goal Results Payout Percent – Calculated Achievement Percent

    • Goal Results Payout Amount – Goal Basis x Goal Payout Percent

    • Business Section Multiplier

    • Business Section Multiplied Amount – Goal Results Payout Amount x Business Section Multiplier

    • Business Section Prorated Amount – Business Section Multiplied Amount x Proration

Goal Result, Payout Percent, Payout Amount are repeated for both Forecast and Forecast2 (modeling).

Form Columns: Business Goals Performance

  • Displays in Business Calculation

  • Financial metrics from the business goals data file

  • Columns:

    • Performance Minimum

    • Performance Low

    • Performance Target

    • Performance High

    • Performance Maximum

      Two tables showing performance goals. The first table configures label names for performance metrics; checked items are highlighted. The second table lists goals for corporate revenue and profit with weightage and targets

Form Columns: Individual Performance

  • Displays in Individual Calculation

  • Columns:

    • Individual Goal Header – Individual Calculation Section title

    • Individual Section Amount

    • Goals – Goal Name

    • Form Name

    • Weight – Goal weight

    • Rating – Performance rating or achievement percent

    • Prorated Objective Amount – Goal Weight x Individual Section Prorated Amount

    • Individual Guidelines

    • Individual Percent

    • Individual Amount – Individual Calculation Amount x Individual Percent

    • Individual Section Multiplier

    • Individual Section Multiplied Amount – Individual Results Payout Amount x Individual Section Multiplier

    • Individual Section Prorated Amount – Individual Section Multiplied Amount x Proration

    • Individual Section Weighted Percentage – Section Weight

  • A table displaying configurations for label names and visibility for individual performance. Below is another table highlighting performance evaluation for Marcus Hoff, showing goal section weight, amount, weight, and rating

Form Columns: Totals

  • Display in Entry-Level

  • Can also be configured in Column Designer

  • Columns:

    • Local Currency Code

    • Total Target Amount

    • Total Target – Business Target Amount

    • Business Calc Amount – Business Goals Payout Amount

    • Business Percent – Business Goals Payout Percent

    • Individual Calc Amount – Individual Target Amount

    • Business Calc Amount and Percent repeat for both Forecast and Forecast2 (modeling)

    • Individual Rating – Individual Performance Rating or Achievement Percent

    • Individual Guideline

    • Individual Percent – Individual Payout Percent

    • Amt – Individual Payout Amount

    • Total – Sum of Forecast2 Payout Amount

    • Percent of Target – Percent of the Target Payout

    • Percent of Salary – Imported from user data file

    • Final Payout

    • Override – Field for managers to enter an override value

  • Configuration table with columns for SuccessFactor Name, Customer Name, and visibility checkboxes. Below, a table compares Marcus Hoff and Richard Maxx on various performance metrics and payouts.

Planner Worksheets

Variable Pay Worksheets

Variable Pay worksheets provide Planners (managers) a framework to recommend promotions, salary adjustments, bonus allocations, stock grants, and other changes to their team's salary composition.

In a normal variable pay process, a worksheet is created for each planner, usually a people manager, or HR representative. Administrators can create worksheets within a plan template from the Launch Compensation Worksheets page.

On the Variable Pay Planning worksheet, you will find links in the upper left corner.

Many configurations have a Summary and/or Reports link.

If your configuration has additional worksheets, such as Stock or MBO Bonus these will also be listed here.

The names of these links are configurable.

Variable Pay Planning Worksheet with additional tabs.

Updating Variable Pay Worksheets

When there are changes to employee data, budget or performance ratings in performance appraisals, the information is reflected in the compensation worksheets and needs to be updated. Administrators can update all worksheets attached to a compensation plan template or update the worksheets for specific employees.

Scheduled Job Manager

If needed, the job may be run later or on a schedule, Administrators can configure the Update Compensation Forms for Template job in Job Scheduler.

Create Job Request functionality defines Job details: Job Name and Job Type

Route Maps

A Route Map determines the workflow a compensation worksheet will follow. When recommendations are entered, the form is routed through a configurable approval process. The worksheet moves from planner(s) to approver(s), sometimes going back and forth a couple of times between two employees until it is complete.

This screenshot shows the route map that the variable pay worksheet will follow through the approval process.

Route All Forms

When there are a large number of compensation forms in the Inbox, administrators can route them a step forward or backward using the new Route All Forms button. The forms must belong to the same compensation, variable pay, or total compensation template.

Route All Forms hyperlink displays options to Send to Next Step, or Send to Previous Step.

The Compensation Planner

The planner is the end user who will receive the variable pay worksheet and has the key role and responsibility for reviewing/auditing their employees' bonus plan and payout. The planner can access the change history on the worksheet and Executive Review to adjust or override the bonus payout.

SAP SuccessFactors has three different methods for designating the role of compensation planning:

  • Standard Suite Hierarchy
  • Rollup Hierarchy
  • Compensation Hierarchy

Summary

  • A Variable Pay Plan Template includes currency, exchange rates, eligibility rules, budgets, and bonus data files.
  • Each template generates forms containing relevant bonus data for planners, linked to specific employee groups.
  • Compensation Planners review, audit, and adjust employees' bonus plans while tracking changes and accessing Executive Review.

Learning

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