Compensation planning is a process that relies on receiving employee information to inform pay decisions and sending information to feed downstream processes.  There are many benefits to automating your compensation process such as increased efficiency, an improved employee experience, more transparency, and minimized risk. However, automation alone is not enough.  Disparate HR solutions and processes can hinder your ability to take a strategic approach to compensation.  A fully integrated approach enables you to gain a holistic view into your talent management landscape, streamline end-to-end processes, and improve the accuracy of your data with real-time data feeds.  While SAP SuccessFactors Compensation can work with any core HR system, the solution works even better with SAP SuccessFactors Employee Central.

Let’s take a deeper look into the benefits of using SAP SuccessFactors Compensation with SAP SuccessFactors Employee Central. 

The compensation planning process is reliant on data from core HR.  Gone are the days of time-consuming manual imports, exports and updates.  With SAP SuccessFactors Employee Central, information is automatically shared between SAP SuccessFactors Employee Central and SAP SuccessFactors Compensation.  For example, you can use the business rules engine with data from SAP SuccessFactors Employee Central to determine employee eligibility for merit increases or bonus plans.

Image 1: Determine rewards eligibility based on data from SAP SuccessFactors Employee Central

And, when it comes time to make pay decisions, compensation planners can view employee data from SAP SuccessFactors Employee Central on the compensation worksheet for more informed planning.  Using an employee’s salary grade, location, company, and other relevant attributes, you can map the salary pay range to each employee and automatically populate the employee’s current pay information on the worksheet.  Additionally, integration with SAP SuccessFactors Employee Central MDF objects gives administrators the ability to use custom portlets, such as a stock history or rating history, to pull information from multiple data sources into the compensation worksheet for more holistic planning.  With real-time updates, planners can be confident that they are always using the most current information.

Image 2: Data from SAP SuccessFactors Employee Central is visible on the compensation worksheet

Calculating bonus payouts is a complex process.  Many employees change jobs throughout the year or have multiple assignments which impact their bonus eligibility.  Keeping track of all these changes across your workforce so you can accurately calculate bonus payouts is critical  in establishing employee trust and improving employee motivation.  Leverage employee assignment history captured within SAP SuccessFactors Employee Central to accurately calculate prorated bonus payouts based on assignment dates, eligibility rules, goal attainment, and pay history.

Image 3:  Use Employee Assignment History for Accurate Prorated Bonus Calculations

Another benefit of using SAP SuccessFactors Compensation with SAP SuccessFactors Employee Central is an improved user experience.  Planners can plan promotions and job changes directly from the compensation planning worksheet during the compensation planning cycle.  Upon approval, the new job information is published back to SAP SuccessFactors Employee Central. This streamlines the process by giving compensation planners a single place to input promotions and other compensation changes during the planning process.

Image 4: Initiate promotions from the compensation worksheet

The compensation worksheet provides planners with all the contextual information they need to make objective pay decisions.  Once compensation changes have been reviewed and approved, the final pay increases and bonus payouts are automatically updated in SAP SuccessFactors Employee Central to the corresponding pay component for payroll processing.

Image 5: Publish pay changes back to SAP SuccessFactors Employee Central for payroll processing

These are just a few of the benefits of using SAP SuccessFactors Compensation with SAP SuccessFactors Employee Central.  To learn more about how SAP SuccessFactors Employee Central unlocks additional capabilities across the entire SAP SuccessFactors HXM Suite, click here.