In present market many companies that are in process of deploying the Compensation administration are considering using the Job pricing functionality to market price internal job. By using Job pricing functionality companies can expect to leverage the latest market analysis from SAP
below I have described on high level about Job pricing Functionality and setting up Job pricing in SAP ECM
1. Over View on Job pricing
In the new Enterprise compensation Management module (ECM 5.0 and above) SAP has introduced an enhanced functionality on Job Market Survey unlike the previous versions.
With SAP Job pricing functionality, assessing salary structure is easier, it allows creating survey providers, Import survey jobs and marketing data
Using job pricing, User can export detailed salary information to survey providers using standard SAP query functionality.
1. Import survey jobs, survey job descriptions and market data from External vendors Into Job pricing or match with SAP Internal Jobs
- Create Job Composite to build a compound based on multiple job matches to Compare against internal jobs
- Create Salary structures based on the available market data and massaged during analysis
Before we begin, the assumption is a proper Job, salary structures are created in SAP and all of them are properly mapped in IT1005 and Job grouping
Job Pricing is Web based User Interface uses the Business Server Page (BSP) technology to render its entire Job pricing Functionality with in SAP
Access the Job Survey Functionality
Menu Path: Human Resources > Personnel Management > Compensation Management > Enterprise compensation Management > Job pricing > Start Job Pricing
TC : PECM_START_JPR_BSP to launch the BSP
1.1 Set up Survey Providers
Under this section you will be setting up the Provider profile, Name, Identification code etc. also known as Vendors. Ex: Hey, Mercer etc
1.1.1 Import Data:
Import Survey Jobs
The Survey files from survey vendors should be ready to perform this step; the required
• File are Survey job catalog, survey Job Description, Survey market data. The accepted file format is Tab delimited .Txt to upload
File format for Survey Job Catalog
Job code | Job level | Survey job name | Job family | Job family name | Grd Low | Grd High |
A000001 | 01 | Engineer | Prod | Maintenance | 00 | 05 |
A000002 | 02 | Engineer | Prod | Maintenance | 06 | 08 |
Once upload the screen takes to next screen where it allows to match up the Provider field name to SAP Field Name
1.1.2 Survey Job Descriptions
Just like the first step upload the Survey job description data, the file format looks like
Job code | Job Level | Survey job description | Experience | Reporting to |
A000001 | 1 | Engineer | 3 | G5 |
A000001 | 2 | Engineer | 5 | G5 |
1.1.3 Market Data
The below fields are to upload as part of Market data
10th Percentile (10% of Employees are below value) |
25th Percentile (25% of Employees are below value) |
50th Percentile (50% of Employees are below value) |
60th Percentile (60% of Employees are below value) |
75th Percentile (75% of Employees are below value) |
90th Percentile (90% of Employees are below value) |
Actual Bonus Expressed as percentage of base salary |
Average |
Average Salary/Actual Bonus Expressed as Percentage of Base Salary |
Average of Salary Weighted by Incumbents |
Average of Salary Weighted by Companies |
Number of incumbents contributing to survey data |
Percentage of Employees Receiving short- term incentive |
Region text |
Revenue Size text |
Salary Range Maximum |
Salary Range Mid point |
salary range minimum |
Short term incentive Actual percentage of Base Salary |
Short term incentive Eligibility |
short term Incentive Percentage of Employees Eligible |
Short term incentive target percentage of Base salary |
Company size Text |
Company type text |
Country ISO code |
Industry text |
Job code |
Job level |
Job matching degree |
Job Matching percentage |
Job status according to FLSA |
Length of service text |
Number of companies contributing to survey data |
Unit of time Follow the same procedure to Import Survey market data. However, when you select this option, additional fields are displayed; Enter the Survey name and Date. This date will subsequently be used in Aging Survey data. In addition, enter the Currency of the imported amount fields. Map the provider field name to SAP Field Name |
1.2 Job Matching
Under this you will be matching up internal bench marked Jobs against the Survey jobs
On the left column, select the SAP job to match up against the Survey Job on the right column.
Once selected click “Match selected job” button. The results of the match job are shown up at the bottom of the screen.
1.3 Composite Result by Internal Job
The Purpose of a job Composite is to build a compound based on multiple job matches
to compare against internal job
Select the internal job, the bottom half show up the job match up did earlier, on the above screen 3 matches up are shown up. Select “Build Composite Result”
Once the composite result save the IT1271 updates in back ground on Object “C”
1.3.1 Compare Market Vs Internal Job
To carry out it is mandatory 1005 on job/ position to carry out the comparison internal job, this functionality enables to perform comparison between the composite market data and your company’s position
1.4 Salary Structure Adjustments
Compare the Internal Salary structure to the market salary structure and have it updated. This functionality can only update pay grades the data from T710.
Current Salary structure display the current stricture from T710
Market data display the composite result integrate into existing pay structure providing the view of percentile, pay category unit of time
Planned salary structure tab merges the composite information to fit with your existing salary structure of the selected pay grade.
Create from Market data get the values from the Market Survey.
1.4.1 Salary Adjustments
When the Pay structure is ready for revise, update the pay grade based on market data.
Menu path: Personnel Management > Enterprise Compensation Management >
Job pricing > Pay grades and Levels > Update Pay grade Amounts from Market Data
The report shows you the current value in the pay structure and the “To BE pay structure.
It is recommended to save the output information into MS Excel file. Do offline analysis finalizing and then submit. This way would be safer method in the production environment.
