Cost to Company – Approach
Cost To Company is one of the key areas in the proess of recruitment/hiring and also in life cycle of an employee in organization. This information is also required for financial decisions like preparing budgets, etc.
Cost to Company involves many components which includes both cash (Basic, HRA, Allowances, Reimbursements), non cash (PF, Gratuity, Medical Insurance, Stock Options, FBT), and Leave Encashment, etc.
This will defenetely a Z report that we make out from different infotypes and sum up and prepare CTC report for the client. SAP although came up with CTC Wage Type but did not solve major areas of requirement of the clients.
As a process improvement, i believe SAP should come up with Workbench Process something like Termination WorkBench. (BADI’s can be provided to have customer specific calculations)
This should be open to both recruitment and personnel administration, where in Hiring Manager/Manager can use this service/process at the time of hiring/salary increment, etc.
So, technically there will be change in processes:
Instead of Infotype 8, hiring manager will first check or update CTC work bench which would dynmically update Infotype 8/14/15 accordingly. The current CTC WT prepared would store total CTC amount, and CTC report would be very easy task with standard reports.
In process of Salary Increments for employee, Manager can check the CTC before releasing using this service and accordingly send the notification to employee.
At the time of preparing offer, Hiring Manager can check with possibilities and provide best offer to employee on spot and release it.
Hope this sounds good and I would like to have comments from you!