Overview of Enterprise Compensation Management
Enterprise Compensation Management is a comprehensive solution that enables you to remunerate employees according to performance, company requirements and current market values.
Compensation Management is an essential tool to keep your enterprise competitive, as the decisions you make have a direct impact on the costs incurred by your enterprise and on employee motivation.
The following functionality is available to help you implement a successful compensation policy:
Participation in salary survey
Salary surveys are conducted to gather information on market payfor positions that are common to many employers. The results are eventually used to set up the company‘s compensation policy.
In many instances the survey providers require participation in the survey prior to selling the data. To participate in a salary survey, you must extract the relevant data from the system and transfer it to the survey provider.
Salary benchmarking
Salary benchmarking enables you to determine the appropriate rate of pay/salary for a specific job. Salary survey results are a key element in the salary benchmarking process.
Compensation budget planning
Compensation budget planning enables you to determine the financial resources available for compensation adjustments within a specific timeframe.
Compensation review processing
In a compensation review process, a manager analyzes the salary and other compensation elements of his/her employees and performs adjustments whenever required.
LTI processing
The Long-Term Incentives component enables you to set up long-term programs for motivating employees. By issuing shares or stock options, you allow your employees to contribute to the success of their company.
The LTI lifecycle includes various steps, such as granting, vesting, life event processing, exercising or cancellation of stock options
Infotypes
ü Compensation Programs Infotype (0758)
ü Compensation Process Infotype (0759)
ü Compensation Eligibility Override Infotype (0760)
ü LTI Grant Infotype (0761)
ü LTI Exercising Infotype (0762)
ü LTI Participant Data Infotype (0763)
ü Composite Survey Result Infotype (1271)
Advantages
· Broad, real-time, and reliable information availability and exchange for decision making
· Strategic personnel management and support for your overall enterprise strategy
· Integration with all vital SAP components inside and outside SAP ERP HCM ensuring communication with all parties involved and full support of the entire enterprise compensation management process
· Improved productivity through user-centric applications that ensure HR professionals and managers have the right tools and an easy-to-use interface
· Unlimited reporting functionalities through standard reports, extensive SAP NetWeaver Business Intelligence reports, and adhoc query functionalities so you can take immediate action when required
· Flexible customizing to ensure that you can set up all possible compensation plans according to your specific needs