Automatic Propagation of Salary Structure (Pay Components) based on Monthly/Annual CTC in Compensation Portlet of Success Factors Employee Central.
Here in this blog i would like to discuss how pay components are automatically defaulting in salary structure of an employee.
For achieving this there should be a standard Compensation adopted by the Company. Here i am giving one example below
HOW SALARY STRUCTURE APPEAR IN COMPENSATION PORTLET
Now here i am showing how the Pay Components will appear in Compensation Portlet of Success Factors for one test employee.
In above example we can see once we enter Current Salary as 20000 then all the salary break up are automatically populated as expected.
ADVANTAGES OF AUTOMATIC DEFAULTING SALARY STRUCTURE
Error Free Data
Reduce manual effort
Compensation data for each employees can be captured along with his/her past record
Reports from Compensation Structure helps to understand the total cost in salary
HOW CAN WE ACHIEVE THIS IN SUCCESS FACTORS SYSTEM?
For this to achieve you should define all your pay components in system as a prior request.
1. Go to Manage Organization Pay and Job Structure -> Create New -> Pay Component
2. Now you can create required Pay Components. Base Salary, HRA, Conveyance, Provident Fund etc.
Example: Base Salary
Similarly you need to create all relevant Pay Components
3. Now you need to give permission for the components to View/Edit for the relevant permission roles
4. Next step is to define a field for Current Salary in Compensation Portlet
Go to Manage Business Configuration -> Compensation Portlet -> Custom Field added below called Current Salary
5. Now you need to give permission to the Current Salary field under Employee Central Effective Dated Entities for the relevant roles
6. Once you complete this you need to write a Business Rule to automatically propagate Pay Components based on Current Salary you have enterd
Go to Configure Business Rule -> Create New Rule -> Basic Rule
Note: You need to select base object as Compensation Information
7. In the rule you can write If condition as required
Here you can define conditions like IF Current Salary is greater than 20,000 or Employee belongs to certain pay grades, company, department etc..
8. Now you have to define then conditions as required
BASE SALARY 50% of Current Salary is defined in Then section
Here i have multiplied Current salary with decimal 0.5 to get 50 %
9. Similar to BASE SALARY I have defined HRA which is 50% of Base Salary. So i multiplied Current Salary with 0.25 to get HRA.
10. Similarly i have defined Conveyance next. Since it is a fixed amount i have defined the amount directly as 3800
11. Same way i have created PF which is 12 % of BASE Salary in rule
12. Once you complete creating rules you need to assign this rule in Current Salary field.
Go to Manage Business Configuration -> Compensation Portlet -> Current Salary -> Details
Assign the rule with event type onChange
Now you have completed the configuration for automatically propagating Salary Structure.
Now you may need to test this scenario by keeping different amounts in Current Salary field.
I tried to give a typical example of Compensation Structure where we usually find in Indian companies. In that also there may be some changes in requirements as per the company policy. Success Factors system is good to do configuration on this based on company need in any country.
Thanks for above information. How to calculate remaining amount for pay component: for e.g. In compensation information Annual CTC is entered as Rs.10,00,0000, based on that Basic Salary (30% of CTC), HRA (50% of basic) is calculated, but for supplementary allowance (Annual CTC-Basic Salary- HRA). How to achieve this.
Please provide your inputs.
You have a minus functionality in business rule. You can use that to minus annual CTC with sum of basic & hra.
Please note this rule will trigger only as onsave since basic and hra also are automatically propagating .
i would like to ask you if these Business Rule is working on event type "oninit" or it's only work with event type "OnChange"
Thank you for this helpful blog
Is there any impact on the performance if we implement many such rules for multiple countries.
There can be slight impact in performance. We did for 40 countries which is working fine.