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In my previous blog I have covered Time Sheet feature in Employee Central (SuccessFactors Employee Central Time Sheet and Time Valuation) . In this blog we are going to see how Employee Central and Compensation modules are integrated and what features in Compensation would be impacted if Integration with EC is turned on.

Before going deeper let’s have a look at what is Employee Central and Compensation Planning in SuccessFactors.

Employee Central

Employee Central is SAP SuccessFactors Cloud based application. It intend to serve as company’s HR system of record (much similar to SAP PA/OM, Time Off and Time Sheet etc.. features) with ESS and MSS capabilities.

I am not going to cover much about EC as there are many good blogs written by experts on this area.

Compensation Planning

Compensation planning is the process of rewarding employees based on their individual performance and increasing the chances of retaining top performers.

How Compensation works with Employee Central

There are few significant changes from the configuration point of view in compensation module if integration with EC is enabled.

Without EC integration, compensation work sheet uses Employee Profile(EP) as the source to show employee personal data, job data, and salary data. So employee data must be imported through UDF (User Data File).

With EC integration, compensation worksheet uses EC as the source to show employee personal data, job data, and salary data.

Integrating Compensation with Employee Central


Employee Central-Compensation integration flow can be described as a 4 step process.


Step 1:  Preparing compensation plan template for integration

To make the compensation plan template EC enabled,  effectiveDate field must be included in comp-config tag.  Once this field is included, the template expects all user data to come from Employee Central, so no employee data imports are allowed in compensation.  Compensation work sheet reads data from EC which is active as of given effective date.

Remove all references of import-key, as EC enabled template doesn’t accept data from UDF file, so import-key must be removed from the fields if it is used for any field.

Step 2: Define data Source for compensation work sheet: 


Fields which are being shown on compensation work sheet is important for compensation planner to take a fair decision.

With EC enabled compensation template now data must come from Employee Central instead of EP and Import file.   One to one mapping must be defined between EC fields and compensation work sheet fields.

Below is the sample to define the mapping between EC field and compensation field.

Component Type

Component Type defines EC source entity .  Only below possible entities are allowed currently.

Job Info

Comp Info

payComponentRecurring

payComponentNonRecurring

personalInfo

employmentInfo

Field Name

EC  source field name

It is possible to map either a pay component or pay component group to current annual salary field in compensation.

Example:    As per employee pay structure he/she is eligible  for below pay components

Pay Components

Basic Salary =  50000 USD Per Annum

Car Allowance =  10000 USD  Per Annam

Variable Pay    =  10000 USD Per Annam

Pay Component Groups

Annual Fixed Salary =  60000 USD

Annual Variable Pay =  10000 USD

Annual Total Salary =   70000 USD

Based on the business requirement it is possible to map either pay component (either Basic Salary, Car Allowance etc.)  Or pay component group (Annual Fixed Salary, Annual Total salary etc.) to current salary field in compensation.

Current Annual Salary in EC Compensation Information


Current Annual Salary in Compensation Worksheet

Step 3 Eligibility Rules and Pay Matrix

To define eligibility criteria ,both EC business rules as well as Compensation eligibility rules must be defined.

Without integration, rules are defined in compensation to determine who is not eligible and for which components he/she is in-eligible.

If integration is enabled, defining eligibility criteria is a two-step process.  EC business rules are used to define who is not eligible and compensation module determines for which components he/she is not eligible.

As EC business rules are more powerful, so complex eligibility rules also can be defined without any issue.

Let’s look at the process to define eligibility rules if integration is enabled.

First Step:  Define the business rules to exclude the population

                 Eligibility rules are defined in general to exclude the employees either from the complete compensation cycle or for some components (Merit,                  Lump sum, Bonus, Stock).

Example:  For example employees who belongs to pay grade other than 13 are not eligible to participate in current compensation cycle.  In this case define      business rule to exclude the population in EC. In EC we only have to define if condition and then condition is always blank for eligibility rules (Then               condition is  defined in Compensation)

Second Step:  Define the in-eligible components

Now it is time to define for which components population coming from EC (in this case employees belongs to pay grade other than 13) are not  eligible and this has to be done in Compensation.

All the business rules created in EC now can be seen in Compensation.  Here we can specify the components for which employee is  not  eligible.

Pay Matrix:

A salary pay matrix is a table that defines ranges of pay based on grade level and up to three additional attributes (such as, country, city, job level, and so on). Pay matrix define the minimum, midpoint, and maximum pay levels for each pay grade and are required for compa-ratio and range penetration calculations.

If EC integration is enabled, we can choose to use either EC salary pay matrix or salary pay matrix table defined with in compensation module itself.  However it is always good to use EC salary pay matrix table if EC integration is enabled.

To use EC salary may matrix make sure that the associations defined with FO object Pay Range in EC are also defined as attributes in pay matrix in compensation plan template.

FO Object Pay Range in EC


Salary pay matrix attributes in Compensation


Note : Pay Grade should always be the first association in EC Pay range object and no need to define Pay Grade as an attribute in compensation pay matrix as system considers it by default.

Step 4 : Publish Compensation Results to Employee Central


Once the compensation planning is completed it is time to publish the final compensation results back to EC .

To publish the results to EC , mapping must be defined between source field in Compensation and target field in Employee Central.

It is important to define the target EC entity, component code, event reason and effective date event reason to be used to  create the new compensation record in EC.

Component Type

Component Type defines EC target entity to which we are writing the data.   Only below possible entities are allowed.

Comp Info

payComponentRecurring

payComponentNonRecurring

Component Code

External code of either paycomponent or paycomponent group

Event Reason

Event reason to be assigned to new compensation record in EC.

Effective Date

Start date for new compensation record in EC.

Compensation work sheet with new  final salary.

Only completed compensation worksheets can be published  to EC.   Background job creates new compensation records in EC based on the effective date provided either in XML or in worksheet.

New EC compensation record.

New  EC compensation record with event reason ( event reason must be assigned in XML ,  please refer above table)

Generate Compensation Statements

Once the data is published, statements can be generated so that employee can view the new compensation details.

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30 Comments

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  1. Luke Marson

    Great job with this Ram. I was planning a blog on integrating EC with Talent, so will definitely link this blog into it.

    All the best,

    Luke

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    1. Ram Dodda Post author

      Thanks Luke for your positive feedback.  I am so exited and looking forward to see your next blog on integration between EC and Talent .

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  2. Tarun Aggarwal

    Very Nice blog Ram.

    Would you like to highlight the limitations that we have in case of defining ‘Budgets’ in a EC integrated scenario?

    Tarun Aggarwal

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    1. Ram Dodda Post author

      Hi  Tarun,

      Thanks for your comments , much appreciated. Yes currently with EC integrated scenario budget by user and group are not supported , so  options are budget by template  or planner.

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    1. Ram Dodda Post author

      Thanks Victor for your positive feedback.

      As of now it is not possible to read country specific fields from EC, so field must be in succession data model if it is supposed to be used in compensation.

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  3. Amy Dines

    Lots of useful information, thanks for sharing.  Couple of updates on Compensation-EC integration:  budget by user is now supported, and we are adding a field mapping Admin Tool to make the integration process a bit easier.  Your suggestions on other ways to enhance the integration are welcome!

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    1. Ram Dodda Post author

      Hi Amy,

      Thanks for your positive feedback and updates.   It is good news to know that field mapping would be part of Admin Tools soon.

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        1. Lesley Roper

          I’m actually just working through the updating through to EC now.  I ran into some issues where I needed to do some additional set up in EC.  Since this client has been live on EC for a while – they had some pay components in EC that they were previously uploading for Merit and Lump Sum where they had categories (Merit <3%, Merit >5%, etc) and they had different workflows attached for these items which were triggered outside of the regular comp cycle.  I’m creating Pay Components in EC that will specifically be related to the annual compensation cycle and will map to those.

          One item I am facing now – is that we have both North America (bi-weekly payrolls) and EMEA countries (monthly payrolls) in the same worksheet.  My Effective Date in EC will be different for these groups – I am trying to use a lookup table to populate my effective date but having a bit of trouble getting it to populate properly, so I am still working on getting that working so that I can post on the proper date for each group in EC.

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          1. Atif Siddiqui

            Lesley, here is what has worked for me.

            Step 1) Use a custom string field to lookup a date based on country attribute.

            Step 2) Use a second field – type DATE – and use the toDate function referencing the field in Step 1.

            I used the following date format – YYYY-MM-DD

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            1. Lesley Roper

              Thanks Atif!

              I just posted a question on the partner portal Q&A board about how to map Base Salary back to EC. It seems there is a Base Salary code for each country (SALCAD, SALUSD, SALMXN, etc).

              Since the mapping is 1 to 1 I am struggling with how to do this. If anyone can post an example here or on the partner portal that would be great! (I don’t necessarily want to turn this blog into a support forum).

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  4. Lesley Roper

    Hi Ram,

    Atif gave some tips on my post in the Q&A portal – for payComponentRecurring you don’t have to specify the componentCode – as long as your component codes are set to “enable for comp planning” in EC, you should be able to post.  I’ve done testing and if not specified, my postings are working properly and defaulting to whatever base salary code the employees already have (SALUSD, SALMXN, etc).

    The only issue I had was that I was posting finSalary and the base salary was expecting the per pay period amount, so I need to divide back to the per pay period but otherwise everything seems to post ok.

    Lesley

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  5. Mohit Mourya

    Great blog, Ram!

    To add to the publishing the data back to EC part.

    If you are trying to write data into a Picklist type of field be sure to pass the equivalent ‘Picklist id’ and NOT the label.

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  6. Prashant Priyadarshi

    Hi

    very helpful article . But i am getting an error that after launching the form the message i am getting in monitor job is :

    The creation of compensation plans has completed SUCCESSFULLY.

    There were 0 plan(s) created.

    the form is EC Enabled and the planner for whom i am launching the form has 5 direct sub-ordinates. Can you please help me in this by suggesting the cause of this issue.

    one more doubt is that i am not getting the option of adding the attributes while using EC pay matrix.

    Capture.PNG

    Hoping for a positive response. Thanks in advance.

    Prashant

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