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Job Pricing in Enterprise Compensation Managment

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

  1. Create Job Composite to build a compound based on multiple job matches to Compare against internal jobs
  2. 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

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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

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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

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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

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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

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1.2 Job Matching

Under this you will be matching up internal bench marked Jobs against the Survey jobs

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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”

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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

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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.

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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

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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.

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