Exploring the Variable Pay Cycle and Workflow

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.

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).

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.

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