Creating a Compensation Plan

Objectives

After completing this lesson, you will be able to:

  • Develop the components of SAP SuccessFactors Compensation
  • Create route maps
  • Set a trigger to force planners to add comments to salary and stock sheets
  • Configure rules for number formats
  • Configure settings to enable flexibility for the display of patterns
  • Integrate a Compensation template with SAP SuccessFactors Employee Central
  • Create a Compensation plan with a leading practice template

Compensation Worksheets

The compensation worksheet is where a planner (usually the manager) works on their direct reports’ overall compensation payout. This includes, but is not limited to, merit, promotion, and adjustment. The worksheet can be configured to show the budget, guidelines, and also the eligibility information to assist planners in the recommendation.

Note
In a classic SAP SuccessFactors Compensation implementation, you configure templates that are then sent to the business users as a form. In Compensation, we refer to the template as a compensation program. The form is referred to as a worksheet.

Select Compensation on the Home dropdown menu. This opens up the My Forms page, from which you select the worksheet to view.

Worksheet Configuration Elements

The worksheet represents all the elements which are configured in the plan.

  • Planning Sheet tabs: Salary, Stock, Summary

  • Configured Budget calculation

  • Approval or Route Map steps

  • Form instructions

  • Currency Views enabled

Every configuration should be checked thoroughly against the worksheet to see if the behavior is as expected.

Note
Pre-configured XML plans are available in all Sales demo instances that can be copied and used as a baseline; however, we recommend using the SuccessStore Leading Practice Template as a starting point.

There are some elements in the worksheet that can be displayed according to the user’s preference.

  • Local number format – Planners can change their number format by going to the OptionsCompensation Number Format menu.

  • Show/ Hide columns – Planners can choose to show or hide columns or a group of columns while planning. They can also apply filters. This is a sticky feature which will be applied every time the same worksheet is opened.

The Salary Sheet

The Salary sheet is used to allocate salary increases for the planner’s group. The sheets are configurable but typical fields you see on a Salary sheet include:

  • Employee information

  • Current and final salary information

  • Merit guidelines

  • Lump sum

Additional employee information can be viewed from the worksheet, if enabled:

  • Compensation Profile

  • Continuous Performance Management (see note below)

  • Promote link (if Employee Central is integrated)

  • Compensation Statement (from completed forms)

  • Custom Views

Note
SAP SuccessFactors Continuous Performance Management is a solution that enables employees to get quick feedback on their work through frequent and structured conversations with their manager. Managers are able to track their team members' progress effortlessly and the solution offers a simple way to provide coaching advice.

Compensation Planners and Hierarchy

When working with SAP SuccessFactors Compensation, there are two terms you will need to familiarize yourself with: compensation planner and hierarchy. They affect how forms are created and for whom.

Overview of Compensation Planners and Hierarchy

  • Hierarchy

    • Determines form creation

    • Determines the employees included in the form

  • Compensation planner

    • Is the person designated to enter compensation recommendations

    • Can be the direct manager, second level manager, or anyone assigned to do so. The compensation planner depends on how the customer’s hierarchy is set up.

Hierarchy

SAP SuccessFactors Compensation supports different hierarchy methods and each one has its own advantages and disadvantages. The method is set up at the plan level. In the compensation home interface, choose a plan, navigate to Plan SetupDefine Planners. The three options are:

  • Standard Suite Hierarchy

  • Rollup Hierarchy

  • Compensation Hierarchy (Second Manager)

Standard Suite Hierarchy

  • Designates every employee that has at least one direct report as a compensation planner.

  • The line manager (direct manager) becomes the planner of the team.

  • Hierarchy follows the organizational structure defined by the Manager column in the user data file. If an employee has at least one direct report, the system will create a compensation form for that employee.

  • Advantages:

    • Simplest method of planning

    • No additional configuration

    • Dynamic

  • Disadvantages:

    • Creates too many forms

    • Since the planner is also the people manager, this hierarchy is susceptible to organizational changes

    • Planning is impacted in case of reorganizations

Compensation Manager Hierarchy

  • Also referred to as Designated Hierarchy or Second Manager Hierarchy

  • The compensation planner can be customized using the SECOND_MANAGER column in the user data file. The system creates a separate hierarchy from the organizational structure for compensation planning purposes. This does not affect the hierarchy structure of other solutions.

    • The second manager column in the user data file is designed for compensation where compensation planning hierarchy is different from reporting relationships.
      • In the example below, the planner in green is responsible for a group that they do not directly manage.

Advantages include:

Compensation planners are different from people managers, hence they are not generally impacted by organizational changes

Disadvantages include:

  • Requires administrative work to maintain and it is easier to break than the other two methods.
  • To identify head of the hierarchy, the second manager column must be blank.
  • When creating a route map, be mindful of custom roles (EA, EAA) when assigning steps to planners. Additional configuration is required such as route map roles (EA, EAA, and so on).

Rollup Hierarchy (Skip Levels)

  • Compensation form created for each associate with direct report ONLY if designated as compensation planner

  • Who has direct reports is based on the Manager (or Second Manager) column of the user data file

  • Designation can be set in the user data file or on the Define Planners page

  • Not every manager or supervisor needs to be a planner

    • In the example below, the manager marked with the X is not a planner.

    • The employee responsibility rolls up to the planner at the next level up.

Advantages

  • Can be used in combination with Standard or Compensation Manager Hierarchy

  • Can reduce complexity/number of forms in use

Disadvantages

  • Remove inactive users, add, move, and user to manager form functions will not work since it is not using any manager from logic

  • Rollup reports will not function properly

  • Requires defined communication

Note
See the Implementing and Managing Compensation guide for more information.

Rollup hierarchy can be configured in the user data file or on the Define Planners page of the admin interface. To define in the user data file, observe the following steps:

  • In the user data file, add a column, COMPENSATION_PLANNER_XXX, where XXX is the Form Template ID (can be verified in ProvisioningForm Template Administration).

  • Only those flagged as TRUE in the COMPENSATION_PLANNER_XXX column will have forms created for them.

  • The system can intelligently determine all the people who should be on the planners form by using the information you have defined in your MANAGER or SECOND_MANAGER columns.

The type of hierarchy and rollup is also indicated in the XML plan.

Use of Rollup in Define Planners

When the Rollup option is selected in the admin interface (Define Planners), the system uses the Standard Hierarchy as the point of reference.

Put a check beside the standard manager name to indicate if that manager will be a compensation planner. This is the same as flagging the employee TRUE in the COMPENSATION_PLANNER_XXX column.

Note
To use Rollup with Second Manager, planners have to be designated in the user data file. Users should be flagged using the COMPENSATION_PLANNER_XXX column.

Planner Audit Feature

As a compensation planner you can review field change history on your compensation, variable pay, and total compensation worksheets.

Once enabled your planners can view and download the Planner Audit change history from the worksheet as well as the Executive Review. Use the Change History icon in the background image and the popup window in the foreground image shows the Change History. Use the Export icon to download the Change History for offline use. Planners are able to download a file with details of field values that have been modified by other planners. The Planner Audit feature can be enabled for up to 10 fields for a template. Some standard fields and all custom fields can be selected to be auditable. See a link to the list of standard fields that aren’t supported for auditing in the Related Information. Also, you can’t enable the feature or add additional fields for Planner Audit if worksheets have been created for a template.

Note
See the SAP SuccessFactors Implementation Guide for more information.

Planner Permissions

Compensation planners can be given permission to grant/revoke planning privileges if the plan uses Rollup Hierarchy.

Note
See the Implementing and Managing Compensation guide for more information.

Breaks in Hierarchy

Breaks in hierarchy can cause forms not to be created or launched. To check for breaks in hierarchy, you can use the following methods:

  • By exporting troubleshooting information

  • By using the Check Tool

Export of Troubleshooting Information

To export troubleshooting information from the Compensation admin interface, proceed as follows:

  1. Go to Compensation HomeSelect the templatePlan SetupDefine Planners.

  2. Search for the planner.

  3. In the Troubleshooting Information area, select Export Users without Manager and then do the same for ineligible users.

Route Maps

A hierarchy method identifies who are the compensation planners and whom they are planning for. Based on this, the system creates a compensation worksheet for that planner. However, a route map determines how the forms will be routed and the users who will receive those forms.

Route Maps: Overview

Compensation planning normally requires an approval process and a route map is the tool which configures the approval process for SAP SuccessFactors Compensation and other form-based solutions. It determines the workflow a worksheet follows through the system. A route map is defined at the plan level.

When you route a compensation worksheet, you’re electronically passing the worksheet around. The worksheet continues to transfer from employee to employee, until all work on the worksheet is complete.

Note
Modification to the route map only impacts compensation forms created from that point forward, not previously created forms.

Route Maps – Roles

Route maps for compensation use the "E" role specifically for users identified as compensation planners, unlike in Performance Management where "E" refers to individual contributor. The roles in a route map may differ depending on the hierarchy method used. In the image, Route Maps – Roles, we are using Standard Suite Hierarchy.

  • The Staging Step is assigned to "U step" or User step. This is typically used as a final comp admin check before forms are routed to managers.

  • Recommendation Step is assigned to Employee (E) and Manager (EM) roles in an iterative type. E role refers to first level managers while EM refers to second level managers in a Standard Suite Hierarchy.

  • HR review is assigned to HR Rep (EH) role.

  • Holding Step is assigned to "U Step". This step in the route map is used to hold all compensation forms in the comp admin’s inbox, while Executive Review is ongoing.

Returning a Worksheet to a Previous Route Map Step

An alternative to using an iterative step type is using the Enable form routing to previous step setting in Plan SetupAdvanced Settings.

Worksheets can be configured to allow them to be sent back on the route map so that the owner can make changes.

Returning a Worksheet to a Previous Route Map Step – Mass Route Document Backward

To mass route the form backward, the administrator also must enable the permission in RBP Administrator PermissionsManage Documents.

Mass Route with No Validation

Compensation worksheets can be mass routed forward a step while skipping validation. This allows the administrator to mass route all forms to the next step and ignore validations.

Considerations When Working with Route Maps

  • Workflow refers to two main components:

    1. Who conducts initial planning recommendations.

    2. What types of review occur following the initial recommendation.

  • General principles:

    • Only include those that would alter a decision, not simply review.

    • Use reporting and Executive Review for reviewing trends and aggregate budgets.

    • Don’t over-complicate by including too many levels of approval. For example, the CEO does not need to personally review every individual recommendation.

  • Signature Stage is not used in SAP SuccessFactors Compensation.

  • Collaborative steps are supported but not recommended.

  • The Staging Step is used for Comp admin accounts to verify forms.

  • The Holding Step is used for Comp admins to do final review and approvals. Executive Review during this time is open for all to read, none to write.

  • The use of "Get Feedback" edit and comments is not recommended.

  • When using Second Manager Hierarchy, take note of the following role code convention:

    • E = Comp planner, as uploaded in the Second Manager column in the user data file.

    • EA = Second level manager of Comp planner, as designed in secondary hierarchy.

    • EAA = Third level manager of Comp planner, as designed in secondary hierarchy.

Note
You can use a custom role to enter the role value as EA or EAA. This will ensure the form will be routed following the Secondary hierarchy setup in the user data file.

Forced Comments

This is a feature that can be utilized in the Salary and Stock sheets. It is the ability to force a planner to add comments. This can be set to occur when the planner makes a recommendation that triggers the setting. Triggers can be any of the following:

  • An employee is given a raise, stock, or options that are OUTSIDE the guidelines.
  • An employee is NOT given a raise, stock, or options at all.
  • ANYTIME an employee is given a raise, stock, or options.

Force Comments: Behavior

  • When the trigger occurs, the bubble icon displays. Hovering the mouse over the icon will give a message to the planner.
  • At this time, the planner can still save the form if the bubble is red or in violation.
  • If the planner tries to send the form, the system will perform a hard stop and a message will display below the route map.
  • To enter a comment, the planner simply clicks the comment icon.

Force Comments: Editing Comments

Comments can be edited and deleted. When combined with the "return to previous route map step", this allows comments to be updated or removed to reflect changes to recommendations.

There are no rules on the content or minimum size of the comments.

Force Comment: Admin UI

Force Comments can also be configured in the admin interface by navigating to Plan SetupDesign WorksheetDefine Standard Validation Rules.

Number Formats

A number format rule determines how numbers will be displayed based on the type of field the number is used for. These field types include:

  • Money

  • Percent

  • Amount

  • Rating

  • Ratio Value (applicable to comp-ratio display)

  • Proration (applicable to date-based proration)

Configuration of number format rules can be performed by navigating to Plan SetupSettingsSet Number Format Rules.

Number Format Parameters

  • Rule Name: unique string value id

  • Format: determines how significant and non-significant digits are displayed

  • Use For: specify the type of number field

  • Mode: determines if the numbers will be round or truncated

  • Multiple: determines the rounding behavior. Can be rounded to increments of 10, 100, 1000, and so on.

  • Multiple rounding mode: round away from zero (up), round towards zero (down) or round towards nearest neighbor (halfUp)

  • Rate Type: determines the salary rate type the format is being applied to

  • Currency: determines which currency the format is being applied to

Note
When there is no format configured for a specific Rate Type and Currency, the system will use defaults. A change on number format rules will require launching new worksheets.

Display Settings

Display settings allow administrators additional flexibility on how patterns are displayed in the worksheet.

Display Settings – Descriptions

  • Display Budget: Determines if the budget panel will be displayed. If not selected, the budget panel will not display, even if there is budget calculation configured in the plan.

  • Display Total: Setting which determines if the column total will be displayed or not. If not selected, even custom fields configured to show the column total will not be displayed.

  • Rating Label Format: Determines how performance ratings will be displayed – text, numeric, or number-text. Leading practice recommends using text to have more meaningful impact at steering rewards than simply numeric.

  • Pay Guide Format: Determines Pay Guide pattern. You can only use the following keywords: min, def, and max. (Def refers to midpoint.)

  • Salary Guideline Pattern: Determines guideline display pattern on the Salary tab. You can use the following keywords: min, low, def, high, max.

  • Stock Guideline Pattern: Determines guideline display pattern on the Stock tab. You can use the following keywords: min, low, def, high, max.

  • Default Sorting: Administrator sets the default sorting options for employee names on worksheets. The choices are First Name, Last Name, and by Ascending or Descending order.
  • Benchmarks (compa-ratio and range penetration) may be color coded based on the percentages of where an employee’s current pay sits.

Integration of the Compensation Template with SAP SuccessFactors Employee Central

Implementing an integration project is more than a toggle of a switch. The following configurations are required to complete the integration:

  • Mapping of compensation field to EC field (compensation template XML or Design Worksheet).
  • Define salary range mapping to pull salary ranges from EC (compensation template XML or user interface).
  • Define mapping to publish data from EC back to Compensation.
  • Cascading budget is available in Employee Central integrated plans, but budget assignment job refresh should be run first to calculate for basis.

Sometimes additional configuration would also be required in Employee Central, such as:

  • Adding custom fields in standard Employee Central entities (such as jobInfo, compInfo, and so on) if they are required in Compensation but not currently stored in Employee Central.
  • Creating new pay components.
  • Creating event reasons.
  • Creating business rules.
  • Creating a generic object to hold additional compensation data for users.

Testing and Validation

Extensive testing of the configuration is needed to validate and ensure that:

  • Data accurately pulls from Employee Central to Compensation.
  • Salary ranges pull correctly from Employee Central.
  • Eligibility rules include the correct employees.
  • Compensation final results are published correctly in Employee Central.

Configuration for an Employee Central Integration

In an Employee Central integration, the Compensation worksheets use Employee Central data as the source to show employee personal data, job data, and salary data.

High-level configuration steps include the following:

  1. Define Field Mapping: Define mapping for each column on the compensation worksheet (COMP).
  2. Create Eligibility Rules: Define eligibility criteria using the MDF Business Rule Engine.
  3. Map to Salary Ranges: Pull the employee’s salary range from Employee Central using the employee’s pay grade and other relevant attributes.
  4. Publish to Employee Central: Publish new salary changes and promotions from completed compensation forms to employee’s record in Employee Central.

Integration with Employee Central allows for a more direct transition of data by connecting the solutions, versus relying on external file feeds or APIs. However, there are limitations on what data can be integrated, either pulled from Employee Central or published back to Employee Central.

Additionally, the Compensation integration assumes the solutions used as designed versus re-purposed data. Integration can highlight these situations. Being mindful of restrictions and design components during the initial Employee Central setup can greatly reduce pain points or require re-working of Employee Central configuration.

Remember: The data must exist in Employee Central to be pulled into compensation planning.

Annualized Versus User Rate Type Planning

In Employee Central, an employee's pay is comprised of more than one component, such as Basic Salary, Target Bonus, Company Car allowance, and so on, and this may affect the design strategy for integrating Compensation with Employee Central. These pay components have multiple attributes. One of the attributes, Used for Comp Planning, is used specifically for integrating with the Compensation solution. The supported values are:

  • Comp is used if the component is to be used for compensation planning.
  • Varpay is used if the component is to be used for variable pay (short-term incentive planning).
  • Both is used if the component is to be used for both compensation and variable pay planning.

An employee can only have one pay component flagged as COMP or BOTH.

Path: Go to Admin CenterManage Organization, Pay and Job Structures.

Compensation planning can be done in annualized amounts or in a user's pay rate amount (hourly, bi-weekly, and so on). In Employee Central-integrated plans, this decision would greatly affect the configuration setup. When using User Rate type, the following Compensation fields do not need to be mapped:

  • Current Salary
  • Units Per Year
  • Salary Type
  • Local Currency

The pay component which is marked Comp or Both is used to retrieve these information from Employee Central to Compensation and only one pay component can be retrieved for an employee. This planning method does not accommodate using the sum of all pay components.

If compensation planning is to be made in an annualized manner, you can use aPay Component Group. In Employee Central, it is possible to group pay components. The amount of a Pay Component Group is equal to the sum of all pay components it includes. To retrieve this information from Employee Central, it is required to map Current Salary, Units Per Year, Salary Type and Local Currency to the same Pay Component Group in the compensation plan. One thing to consider for this method of planning is that, currently, Compensation can only publish back to individual pay components and not pay component groups, which means it would require substantial configuration to create a work-around and publish compensation results to individual pay components.

The Pay Component Group is created for publishing the data of non-hourly paid employees.

The Compensation-Employee Central Integration Process

This section focuses on configuration when integrating Compensation with Employee Central, illustrating the flow of data.

Employee Central Integrated Compensation Plans

Similar to plans that are not integrated in Employee Central, you can start by uploading a baseline compensation template or use the preconfigured plans from SuccessStore. When uploading your own baseline templates, take note of the following:

  • Ensure that the XML template does not have any references to "importKey".
  • Since the Employee Central-enabled template does not accept data from the user data file, "importKey" must be removed from the fields if it is used.
  • Stock factor tables are not supported.
  • Add the appropriate comp-ect-output element for publishing.

To use Employee Central integrated plans from SuccessStore, take note of the following as these may need to be created/ enabled in Employee Central beforehand:

  • Event reason ANSALREV is referenced as the event reason for publishing. This event reason will have to be created prior to downloading the preconfigured plan from SuccessStore. The event reason can be changed later.
  • Component Code LUMPSUM is referenced as the non-recurring pay component for publishing.
  • Job function is referenced for mapping promotion related fields (that is, job codes).

Employee Central Settings

Many of the records in Employee Central are effective-dated, meaning each time a transaction is entered, the system prompts to provide an effective start date, which creates the historical, present, and future records in Employee Central.

The worksheet effective date will control which records are pulled to the Compensation worksheet. In the figure, Worksheet Effective Date, any transaction with an effective date AFTER December 31, 2099 is NOT pulled to compensation planning.

Example: A transaction to update M. Hoff's pay grade was entered via Manager Self Service (MSS) on December 1, 2099 with an effective date of January 15, 2100. For planning purposes, M. Hoff's pay grade as of December 31, 2099 will be used in the compensation worksheet because the transaction effective date is AFTER the worksheet effective date.

The current employee records for Employee Central are end-dated far in the future, so choosing a worksheet effective-date that is in the future will ensure the most current record is pulled. With a future effective date, the customer should run the "Update Compensation Worksheets" job regularly to ensure the latest data is displayed on the compensation forms.

There is a single effective date per template. The effective date can be set in the Admin Center by navigating to Plan SetupSettingsEmployee Central Settings or directly in the XML plan template. Entering an effective date initiates the integration between Compensation and Employee Central. This date cannot be changed when forms are already launched.

Different Effective Date Scenarios

Different worksheet effective dates based on common customer requirements are as follows:

  • Customer wants to pull Employee Central data (salary, department, and so on) as of a cutoff date

    Worksheet effective date: End of plan period, end of fiscal year, and so on

  • Customer wants to pull data as of form launch date

    Worksheet effective date: Form launch date

  • Customer wants to pull the most current data from Employee Central including any future changes already scheduled to take place

    Worksheet effective date: 12/31/2099

Hybrid Templates

A special scenario exists for some companies when a portion of employee population is stored in Employee Central and the other half in another HRIS solution, such as in cases of mergers or consolidations. SAP SuccessFactors Compensation supports dual data source of employee information, by using hybrid templates.

  • A hybrid template is where some users are stored in Employee Central, and others outside, though both are planned within the CMP.
  • Hybrid templates use both import keys (user data file mapping) as well as Employee Central data mapping.

Hybrid does NOT mean you can have mixed data sources for a single employee. It is NOT possible to select some field-level data from Employee Central and the remaining field-level data from the user import for the same user.

Employees MUST still exist in SAP SuccessFactors (that is, they must have user id records and People Profile records).

Caution
A hybrid scenario can increase complexity and is not preferred.A recommended alternative is to have a template for each separate population: an Employee Central-integrated plan for employees stored in Employee Central and another plan for employees stored in an external HRIS.

Publish Settings

Publish settings reflect how recurring and non-recurring pay components are mapped and configured in XML. The effective dates and event reason are editable so company administrators can easily update payout dates within the UI.

User Publish Filter: Controls which reportable custom field can be used as a filter when publishing selected employees. Only one custom field can be used per plan.

Effective Date: Specifies the default start-date for recurring pay components and the pay date for non-recurring pay components. Dates specified at the employee-level will take precedence over the default.

Event Reason: Specifies the reason for the payout. This is OPTIONAL for non-recurring pay components. If an event reason is configured at the employee-level in the Compensation template, (for example, by use of a lookup table), the event reason specified here is used only as a default value in case an employee-level value does not exist.

Mapping the publishing information in the XML will be discussed in the succeeding steps.

Field Mapping

Relevant employee information must be pulled to Compensation for effective planning decisions, with an Employee Central-integrated compensation template, these data must exist in Employee Central. To pass information from Employee Central to the compensation form, the fields must be mapped.

Compensation can retrieve data from the following Employee Central entities:

  • Job Information
  • Compensation Information
  • Pay Component Recurring
  • Pay Component NonRecurring
  • Personal Information
  • Employment Information
  • Job Relationships
  • Pay Component Group

Compensation can also retrieve data from custom MDF objects and Employee Profile (standard elements in Succession Data Model, for example, riskOfLoss, talentPool, and so on).

Guidelines for using Employee Central-field mapping in Design Worksheet:

  • The Employee Central Category specifies the type of Employee Central component that data will be retrieved from.
  • When planning in the User's Pay Rate type, the fields Current Salary, Units Per Year, Pay Rate and Local Currency Code can be left blank.
  • The Employee Central Component name is only valid for component types: Pay Component Recurring, Pay Component Non-Recurring, Pay Component Group and Job Relationships. It will be ignored for all other component types.
  • When mapping to the Pay Component Group, the fields Current Salary, Units Per Year, Pay Rate Type and Local Currency Code MUST be mapped to the same Pay Component group.
  • Fields should be mapped to the correct element type. A "string" field should not be mapped to a "number" field or vice-versa. While the system will attempt to make that conversion, it can fail. Strings with commas or dollar signs will not properly convert, as an example.
  • Custom fields can display translated values in the form. To achieve this, you need to configure the custom fields as translatable in the Design Worksheet page and then map to an Employee Central translatable field. Only read-only custom fields with the column type String are currently supported to be translated.
  • In cases where customers use generic objects (for example, stock portlet, rating history, leave stats, and so on) to hold additional employee information, field mapping has been extended to pull data directly from generic objects. Previously, customers had to replicate data from generic objects to Job Information or Compensation Info to use it for compensation planning. For generic objects to be used for the compensation process, externalCode must be of the type User. Generic objects are available for mapping under the Employment Details Employee Central category.

The same mapping functionality is available for rating source and budgets. In the absence of Performance Management (PM) form, ratings can be pulled from Employee Central. BasedOn="user" budget settings will require fields to be mapped from Employee Central.

Pay Matrix

The pay matrix defines the minimum, midpoint, and maximum pay levels for each pay grade and is required for compa-ratio and position in range calculations.

If Employee Central integration is enabled, you can choose to use either the Employee Central salary pay matrix or the salary pay matrix table defined within the Compensation solution itself. Though not required, it is always best to use the Employee Central salary pay matrix table if Employee Central integration is enabled.

To use the Employee Central pay range in Compensation:

  1. Identify the pay range associations from the Corporate Data Model.

    Normally, pay range in Employee Central is associated to Geozone, Legal Entity, and Pay Grade. For integration purposes, Pay Grade needs to be the first association in the corporate data model, as payGrade is always the first factor in compensation pay range mapping. Any other associations configured in the corporate data model must be added to the compensation plan and mapped to Employee Central.

  2. Make sure each of these required fields are also added to the compensation plan and mapped correctly to Employee Central:
    • Pay Grade

    • Currency Code

    • Salary Type (Annual, Monthly, Hourly)

    • Client-specific attributes (for example, Geozone, Legal Entity, and so on)

  3. Select Use Employee Central salary pay matrix.

    The effective date should be the date that the pay range information is effective in Employee Central. Typically, this is the start date of the beginning of the compensation cycle.

    The attributes are the associations found in the pay range foundation object in Employee Central. Pay Grade and Currency do not need to be added as attributes as they are by default used as a matching criteria.

    To know the pay ranges that are currently in the system, you can generate an Ad Hoc Report. As pay ranges are foundation objects, select Foundation Objects as the report definition type and select the columns for Pay Range.

Create a Compensation Plan with a Leading Practice Template from SuccessStore

Business Example

You need to create a new compensation plan that is integrated in Employee Central based on the leading practice template from SuccessStore. To pull data from Employee Central, use Employee Central field mapping and Employee Central pay matrix.

Steps

  1. Enable the Compensation-Employee Central promotion integration setting and permissions.

    1. Select the setting in Actions for All PlansCompany SettingsEnable Compensation-EC promotion integration.

    2. Set the permissions for EC-Comp Integration. Manage Permission RoleSystem AdminPermissionUser PermissionsEmployee Central-Compensation IntegrationSelect All..

    3. Set the permissions for all Event Reasons. Manage Permission RoleSystem AdminPermissionUser PermissionsEmployee DataEvent ReasonsSelect All.

    4. Set the permissions for all Pay Components. Manage Permission RoleSystem AdminPermissionUser PermissionsEmployee DataPay ComponentsSelect All.

    5. In Admin Center go to Compensation HomeAdd New Compensation PlanAdd a SuccessStore plan template.

    6. Enter 20xx Comp Planning or any other preferred name.

    7. Select Salary Planning (EC-Integrated) from the SuccessStore templates.

    8. Select EC_CONV_TABLE as the Currency Conversion Table.

    9. Select Add Template.

    10. On the left-hand side, open the new plan and navigate to Plan SetupSettingsPlan InformationFiscal Year End Date.

    11. Enter 12/31 of the current year.

    12. Update the Approval Process by selecting the Comp route map.

    13. Enable Use EC salary pay matrix.

    14. Enter 01/01 of the current year as Salary pay matrix effective date.

    15. Click Save.

    16. Navigate to Plan SetupPlan DetailsRating Sources.

    17. Select Take ActionEdit.

    18. Select Performance Evaluation as the Form.

    19. Save.

  2. Set up the Employee Central settings.

    1. Go to Plan SetupSettingsEmployee Central Settings.

    2. Enter 12/31 of current year for Effective Date, under Worksheet Settings.

    3. In Publish Settings enter 03/31 of next year for all Component Types (for example, Compensation, Spot Bonus, Job Information).

    4. Save changes.

  3. Set Employee Central field mappings.

    1. Navigate to Plan SetupDesign WorksheetDesign Worksheet.

    2. Select each of the compensation fields listed in the table. In the field properties, set the mapping by choosing the appropriate EC category, component and field. For example, select Job Title field, then choose Job Information from EC Category dropdown. Select Job Title as EC Field.

      Comp FieldEC CategoryEC Component NameEC Field
      Job TitleJob Informationn/aJob Title
      Geo ZoneJob Informationn/aLocationGeo Zone
      Pay TypePay Component GroupAnnualized Salaryn/a
      Units Per YearPay Component GroupAnnualized Salaryn/a
      Current SalaryPay Component GroupAnnualized SalarySum
      Local Currency CodePay Component GroupAnnualized SalaryCurrency
    3. Click Save.

  4. Rearrange the Pay Range associations in the Corporate Data Model.

    1. Use action search to go to Import/Export Corporate Data Model

    2. Select export as the action to perform. Click export button.

    3. Open the Corporate Data Model. Go to payRangehris-associations

    4. Rearrange the associations to set payGrade as the first association.

      Code snippet
      <hris-associations>
      <association id="id" multiplicity="ONE_TO_ONE" destination-entity="payGrade" required="false"/>
      <association id="id" multiplicity="ONE_TO_ONE" destination-entity="geozone" required="false"/>
      <association id="id" multiplicity="ONE_TO_ONE" destination-entity="LegalEntity" required="false"/>
      </hris-associations>
      Expand
    5. Save the XML and import back to your instance.

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