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Author's profile photo Sanket Deshmukh

SuccessFactors Compensation Implementation requirement gathering steps


This post will provide steps to be followed during requirement gathering for Successfactors Compensation implementation.

Steps for requirement gathering:

  1. The first and the most important part of compensation cycle is the eligibility of employees who are to be included in the current cycle or to be excluded.
  2. The eligibility for the 3 main pillars (Merit, Adjustment, LumpSum)of compensation cycle needs to be discussed thoroughly.
  3. After confirmation on the eligibility for Salary increment the Bonus eligibility should be discussed.
  4. After eligibility discussion Guidelines for Merit, Adjustment, LumpSum and Bonus are to be discussed with customer.
  5. Current and Revised salary break-up should be discussed with customer. This is useful as what columns are to publish back to EC once compensation cycle is completed in case of EC- integrated template.
  6. The customer must be advocated about all 3 Hierarchy’s available in compensation system and partner must get confirmation on 1 hierarchy on which they will move forward.
  7. Once the hierarchy is confirmed, The Comp planner must be finalized, and the Route map requirement is to be discussed with customer.
  8. Budgeting requirement for Salary components and Bonus is to be discussed with customer. The customer must be advocated about the system budgeting limitation and workarounds should be provided as per requirements.
  9. The cut-off dates till which the data will be considered as final for compensation planning has to be confirm by the customer.
  10. The data flow to compensation based on the template, if its EC integrated template get confirmation on the number of fields for which the data will be coming for EC or any extra fields are to be created in EC, If the template is Non-Integrated then the data flows from UDF using import keys.
  11. Functional and local Currency conversions requirements is to be discuss with customer.
  12. A demo session for “Field based permission” and “Executive Review permissions and access” should be conducted for customer understanding.
  13. A demo session on Compensation Statement should conducted for customer understanding and discussed further.


Minor requirements to be confirmed at the time of requirement gathering:

  1. Number for decimals to be used, A confirmation on number and currency formatting, get a confirmation from customer if they want to go ahead with 2 decimals on the worksheet and get their requirement.
  2. Is currency rounding (Round ‘Up’ or Round ‘Down’ or Round ‘HalfUp’) to be used, a confirmation is must.
  3. Get confirmation from the customer on the deliverables. (Documents: Workbook updation, User Manuals, Test scripts)


The above 16 points provides a details overview of the steps to be followed while gathering requirement for SF compensation implementation. It covers the basics of compensation module from eligibility, budget, salary and bonus increments, guidelines and hierarchies.

I request community users to add their insights and points in comment section which can be helpful while requirement gathering.

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      Author's profile photo Xavier Le Garrec
      Xavier Le Garrec

      Hi Sankhet,

      Thanks, here are a few additional things I could think of after reading your very relevant bullet points :

      1. Prior to workshops connect with the customer and demo the key features of Compensation and Variable Pay from a leading practice environments. Provide recordings in a shared folder so that they can always replay them.
      2. Configuration areas that customers have a hard time understanding :
        • Compensation : planner centric workflow (an employee eligible for salary review cannot be in step 1 in his supervisor's form and in step 2 in his own HR form : everything is based on the planner's job relationships and executive review needs to be used for roles that are employee specific like HR).
        • Compensation : publish back to EC is made on the pay component and not on the pay component group.
        • Variable Pay : bonus plans and business goal assignments : we need to have customer provide us with the least common denominator to assign employees to business goals or bonus plans (since we can only use one field to assign them - except for bonus plans where we can sometimes use EC rules).
        • Compensation and Variable Pay : statements do not have self-service logic, they are generated by Comp Admin and pushed onto the employee's EC profile and/or made available in Executive Review for planners to mass download.

      All the best


      Author's profile photo Sanket Deshmukh
      Sanket Deshmukh
      Blog Post Author

      Thank You Xavier for your insights 🙂