Preparing EC for Compensation implementation success
EC is going live first and Compensation implementation is planned for the following year: how can EC be built in the best possible way for Compensation ?
- #1 – Check on fields we recommend adding to EC without which we need to go through complex workarounds with custom MDF objects in Compensation implementations :
- Comp Info > “Date of Last Salary Increase” (and also “Reason for Last Salary Increase” could be useful in Compensation eligibility rules).
- Job Info > “Date made Executive” (date when employee goes from non-Exec pay grade to Exec pay grade).
- Job Info > “Incentive plan” (which will populate on Save based on a business rule to be determined with Comp leads).
- Employment Details > “Termination Reason (copy)”. In case incentive payouts for terminated employees are based on termination reason, see explanations on this blog.
- If the customer is planning on implementing Time Off module with a 1:1 relationship between Time Types and LOA Event Reasons (leading practice) then we recommend adding a custom string field in Job Info called “LOA Event Reason” with on Save Business Rule logic as follows in order to allow Compensation and Variable Pay templates to easily retrieve only specific Time Types as part of eligibility rules:
- if jobInfo.Event = Leave of Absence, copy the standard EventReason field code into “LOA Event Reason”.
- if jobInfo.EventReason = “LOAGLORTW” (usually the same code is used for all Return to work situations), make “LOA Event Reason” field blank.
- #2 – Check with Compensation teams whether Pay Component Groups created in Comp Info are consistent with Compensation implementation requirements (what is considered Annualized Base Salary for each country, some countries add allowances for example).
- #3 – Make sure that payGrade is defined first (top line) in the HRIS-association for Pay Range in the Corporate Data model otherwise the standard Compa-Ratio integrated with EC Pay Range in Compensation module will not work. See this document.
- #4 – Make sure FO Pay Ranges table entries have all attributes entered (no blanks). See this blog.
- #5 – If one of the Foundation Objects such as Legal Entity is a key factor in determining eligibility for Comp processes then we recommend adding all comp processes as attributes of the Legal Entity to facilitate the implementation of Compensation Eligibility rules.
- #6 – Make sure Global Assignment cases have a unique field value for each situation. In simple designs the home/host field in EC Job Info is enough however when there are several types of work assignments a summary like the one here needs to be provided to the compensation consultant at the start of the implementation.
- #7 – Check that there is enough data history (one year) to run the first Variable Pay cycle.
- #8 – Start loading the Compensation Manager job relationship and hris-sync it with SECOND_MANAGER column of the UDF if Compensation approvers are different than the regular supervisor.
Conclusion and additional links
- Thanks to contributors from SAP: Christian Smith, Phil MacGovern, Anna Liebscher.
- Compensation Implementation Leading Practices is another blog related to this topic worth exploring.
- Are you a customer looking to understand the Compensation module better ? we would strongly recommend signing up for SAP’s Embedded Launch Activities program so you can get access to your own Demo environment with leading practice configuration.
All the best
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