Describing SAP SuccessFactors Compensation

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Outline the compensation process (salary and bonus)
  • Explain how the Reward and Recognition (Spot Awards) program works

Compensation Process

Begin the video to get started on SAP SuccessFactors Compensation.

SAP SuccessFactors Compensation can help you build and manage strategic compensation programs that align with the needs of your employees, your business, and your budget.

SAP SuccessFactors Compensation solution is comprised of these components:

  • Compensation Planning: Supports salary and long-term incentive planning
  • Variable Pay (Bonus) Planning: Supports short-term incentive planning
  • Reward and Recognition: Supports cash-based and point-based peer-to-peer award programs

Salary Planning: High-level Steps

Variable Pay (Bonus)

Variable Pay is the bonus component of an employee compensation, what is called short-term incentive. SAP SuccessFactors Variable Pay supports and standardizes the bonus planning process. The bonus planning process is the same as that of compensation planning.

Bonus Worksheet

The bonus worksheet breaks down how the total bonus payout was calculated. Payout results are typically comprised of business, team, and individual employee performance.

Rewards and Recognition

More and more organizations want to encourage peer-to-peer recognition to provide timely recognition for outstanding company contributions or participation in special projects. Organizations also want to reward years of service or other milestones reached by employees.

SAP SuccessFactors Reward and Recognition provides a way to manage, budget, and administer these spot and milestone award programs.

Types of Reward

Similar to that of salary and bonus planning, awards are often subject to budget, eligibility, guidelines, and approval process.

High-level Steps in Nominating an Employee for an Award

  1. Search for the employee you would like to recognize.
  2. Choose the award program.
  3. Select the award category and level.
  4. Enter a message for the recipient.
  5. Submit for approval.

Once the awards are approved, the recipients are notified.

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