One common misconception about the SAP SuccessFactors Compensation module is that it can only be used for the salary review process. While that remains its most common and leading practice use case, the module can also be used to support a broader range of adjacent HR and reward processes.
This post explores three practical ways organisations can extend the value of SAP SuccessFactors Compensation beyond the standard salary review use case.
Compensation Statement Generation
At the end of a compensation review cycle, forms are moved into the completion step and compensation statements are generated for employees. In some organisations, however, the end to end salary review process is fixed, centrally determined, or applied directly in Employee Central. In these scenarios, the Compensation module can still be used to support statement generation.
To configure a statement only template, pull the updated salaries after the fixed increase is applied in Employee Central or apply a fixed increase directly to all eligible employees in the worksheet. Configure a one step centralised workflow, or a read only simplified workflow for business users to review outcomes, before routing worksheets to completion. Once worksheets are completed, statements can be generated as usual based on the fixed increases.
This modified process allows organisations to generate compensation statements without running a full manager-input review cycle. The approach takes advantage of the automated letter distribution, employee and manager statement notifications, and self service access, which are core features of the module.
Data Validation
Many HR and reward processes depend on accurate employee data. When the ownership of employee data belongs to the business, Compensation worksheets and route maps can provide a structured way to support the validation activities.
A read-only form can display Employee Central data as at a defined point in time, giving your business data owners a consolidated view of the employees they are responsible for. Instead of relying on static reporting, a workflow can be used to assign multiple reviewers and push accountability for the validity of data back to the business. While changes or corrections to the data must take place in Employee Central, this creative use case of a compensation form template can form part of your salary review activities.
Simple Bonus Calculations
Variable Pay is often the preferred solution for incentive payments but if your organisation has a simple point-in-time bonus that does not require complex employee historical information, the Compensation module can be a practical alternative. Gainshare or simple profit distribution plans are examples that often fall into this category. In these cases, the standard lump sum field can be used to calculate a bonus payment without impacting an employee’s fixed salary component.
These creative solutions are just a few of the examples in which customers can use the functionality of SAP SuccessFactors Compensation for more than just a once a year review tool. I’d love to hear in the comments other ways in which your organisation or client has used the module for creative business requirements.
