HR850 EN Col92

SAP SuccessFactors Compensation
Project Team Orientation (PTO)

HR850
Q2 2019
About this Guide
Welcome to the Project Team Orientation (Project Team Orientation) for SAP SuccessFactors Compensation.
The overall goal for this guide is to provide a knowledge transfer on the core out-of-the box functionality of SAP
SuccessFactors Compensation. This will enable you to gain a high-level understanding of the concepts and
capabilities of the software.
Using this guide, you will learn about key elements of the SAP SuccessFactors Compensation tool and make
decisions about how you will use the Compensation tool so that your organization can work with SAP
SuccessFactors Professional Services consultants in planning and implementing an effective configuration.
© 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 2

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Agenda
 Introduction to SAP SuccessFactors Compensation

 The Structure of Compensation Planning
 The Process
 The Components
 Reports

3
Project Team Orientation
SAP SuccessFactors Compensation Project Team Orientation
What is the Project Team Orientation (PTO)?

The overall goal of this course is to demonstrate the functionality that you have available to you. There will be
additional training opportunities for you in the future.
Who is the Audience?

The Project Team Orientation is designed for the major stakeholders who are responsible for implementing SAP
SuccessFactors Compensation and provide enough information so that you understand the core out-of-the box
functionality that you have available to you.
Goals of Compensation Project Team Orientation

The overall goal is to gain understanding of SAP SuccessFactors Compensation. This guide will review all core
system functionality to prepare you for the upcoming functional workshop and business processes discussions
that you’ll be having with your SAP SuccessFactors Professional Services consultants and project team.
In addition, a review of the management model that ties together important terms and concepts as well as
discussion regarding the day-to-day activities of a system administrator are provided.
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SAP SuccessFactors HCM
SAP SuccessFactors Compensation is part of the SAP SuccessFactors HCM integrated suite of solutions.
Comprehensive Talent & Core HR Applications

• Strategy: Knowing what needs to be done
• Assets: Securing the resources to do it
• Execution: Getting people to do it
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SAP SuccessFactors Compensation
Compensation: Introduction
SAP SuccessFactors Compensation provides Human Resource (HR) managers with a tool for communicating and
reinforcing the organization’s compensation philosophy and guidelines. It enables managers to systematically
associate pay for performance across compensation programs.
The data in SAP SuccessFactors Compensation can come from multiple sources. The data can be uploaded in
CSV format via an sftp process, be directly integrated with Employee Central via field mapping, or come via an
API from an external HRMS such as SAP. Your Professional Services Consultant will either assist in the mapping
of fields for EC-Integrated customers, or provide detailed integration specifications if using a flat file approach or
other integration.

8
Overview
The SAP SuccessFactors Compensation tool provides managers with relevant information for making planning
decisions on salary, promotions, equity and stock adjustments according to individual, group, or company-wide
guidelines. It is intuitive to use and highly configurable, allowing your organization to tailor it to your own business
processes.
The SAP SuccessFactors Compensation tool can be used with Performance Management to effectively link job
performance with compensation awards. Performance information can be made readily available to planners
when making compensation decisions.
Automated merit increases based on guideline calculations such as job level, pay grade, performance rating,
compa-ratio, and range penetration can be implemented. You can also automate lumpsum disbursements and
automatic rollovers of merit to lumpsum if over.

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The Compensation Cycle and Forms
SAP SuccessFactors Compensation is a form-based system. For every compensation cycle, a compensation plan
template is created. The template pulls together all the elements necessary for compensation planning, such as
functional currency, exchange rates, benchmarks, rating sources, eligibility rules, guidelines, and budgets.
The template is given a name that quickly identifies it. For example, you might call a template “20xx Compensation
Plan”. This template is then used to generate the compensation planning forms.
When a form is launched, it is routed to the person responsible for planning the compensation for a specific group
of people. The form contains compensation data and links to employee profile or Employee Central data only for
that group. The form is named for the person who is responsible for the planning. For example, “20xx
Compensation Plan for Carla Grant (cgrant)”.

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The Compensation Cycle and Forms
In order to maintain data integrity, it is essential that with each new compensation cycle, a new template is
created. In SAP SuccessFactors, this template may be cloned from a previous template. Cloning maintains all the
earlier configuration decisions and simplifies the process. Other supporting items such as currency conversion
rates, lookup tables and pay ranges may also need to be copied and modified.
Once a compensation form is completed, it is approved according to a process that has been configured in the
system through the route map.

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Permissions
Role-based permissions allow you to control

access to applications in the SAP SuccessFactors
suite via permission groups and permission roles.
Roles define what is allowed; the groups define
who is allowed to do it (granted users) and for
whom (target users).
Granular permissions can be provided according

to administrative needs and appropriate
population. Most rights can also be restricted by
target population, allowing for distributed
administration of the process.
A separate permission feature called Field Based

Permission is available if you wish to control the
visibility to compensation information at the column level. For example, there may be a column that you wish HR
to be able to edit, but that a manager would only have “read only” permission.

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The Compensation Planning Interface
The interface displays information that you, as the client, has determined is most relevant to the planner, providing
easily available links to more in-depth information. An individual compensation planning form contains a list of the
manager’s employees and other information, including performance, compensation, merit increase guideline, and
budget data (information that you deem necessary for managers to make recommendations for their team
members).
As the planner decides on compensation awards for an individual, the system will calculate the total compensation
package and the remaining budget allocation.
If your configuration allows, planners may add notes and activate a promotion. Depending on your business
process, additional configuration options include requiring notes, executing promotions, requiring managers to be
within budget or within guidelines, and adjustments to most column labels and form text.

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The Compensation Planning Interface

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Worksheets
On the compensation planning worksheet, you

will find links located in the upper left corner.
Many configurations have a Summary and/or
Reports link.
If your configuration has additional worksheets,
such as Stock , or SAP SuccessFactors Variable
Pay, these will also be listed here.
The names of these links are configurable.

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Salary Worksheets
Salary: This is the default worksheet for most

implementations. The Salary sheet displays
information pertaining to an employee’s current
salary, performance rating, and various other
fields of information as configured by your
organization.
The main purpose of this sheet is to provide

managers with the information they need to
make informed merit, adjustment, lump sum,
and other decisions.

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Stock Worksheets
Stock: The Stock worksheet is for

organizations where long term incentives
are part of a compensation package.
The Stock tab is typically only used when

stock planning is conducted in units versus
currency amounts. For example 100 RSUs
versus 10,000 USD.

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Worksheets
There are also tabs to display Budget,

Metrics, and Route Map views as well as
instructions on how to use the
worksheet. The Functional Currency
drop-down menu allows you to choose
the currency to be displayed on the
worksheet.
After a recommendation has been

entered, planners send the form to the
next step on the route map. A dialogue
window allows for adding comments on
the compensation plan for the next
person to review (provided routing e-mail
notifications have been enabled for the
instance).

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The Structure of Compensation Planning
The Compensation Planner
The compensation planner has the key role and

responsibility for recommending compensation
changes for employees.
SAP SuccessFactors has three different methods for

designating the role of compensation planning:
 Standard Suite Hierarchy
 Rollup Hierarchy
 Compensation Hierarchy

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Standard Suite Hierarchy
Standard Suite Hierarchy

designates every employee with
direct reports as the
compensation planner for those
that they manage.
This method is the simplest of

the three methods as it requires
no additional work. This system
is not open to alterations of the
manager/planner if there are
special scenarios, except for one
off manual interventions by an
administrator.

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Rollup Hierarchy
In this scenario, not every manager becomes a compensation planner. Planning can be rolled-up to next level
manager. The designation is done through the administrator interface or through import file. Planners are
responsible down the line of their hierarchy. This system allows for easy assignment of planners and can reduce
the complexity and number of forms in use. It has the disadvantage of requiring defined communication and will
not automatically designate a manager as a compensation planner.
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Compensation Hierarchy
In the Compensation Hierarchy, the

hierarchy for compensation planning is
created and can be 100% customized.
Employees are assigned to be

designated compensation planners who
may or may not be direct or indirect
supervisors in the standard managerial
hierarchy. This method provides the
greatest degree of flexibility in assigning
compensation managers.
The Compensation Hierarchy is most

often used for organizations that want
the hierarchy to remain frozen during
planning or those where not all
employees with direct reports conduct Note: The disadvantage with using the Compensation Hierarchy is that it
compensation planning. will require separate maintenance from the standard Manager Hierarchy.
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The Components
Introduction
Every company has a compensation

structure that is unique. SAP
SuccessFactors can be configured to
manage many different scenarios.
You may want to implement SAP

SuccessFactors Compensation to
duplicate the system you have. As you
gain experience and understanding of
how SAP SuccessFactors can
streamline conformance with
compensation best practices, your
system may change. For instance, the
rules to guide compensation are
defined in the Compensation Planning
Template. Therefore, the more broadly
a set of rules can be applied, the easier
it will be to implement in the system.
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Importing Data Into SAP SuccessFactors Compensation
Data integration between SAP SuccessFactors and your Human Resource Information System (HRIS) or payroll
system allows single source updates for your employee data. During implementation, you will decide how to map
SAP SuccessFactors fields with your current database.
User Data File

The User Data File (UDF) must be configured to upload into SAP SuccessFactors. This file contains the data for
compensation planning. A full list of the standard fields available appears in the Appendix. However,
compensation data requirements vary widely. Your PS consultant will review the standard fields with you to
determine which fields are relevant for your requirements.
Note: Customers using Employee Central or an API, the data will be mapped to fields in a different manner.

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Importing Data Into SAP SuccessFactors Compensation
Currency Conversion
SAP SuccessFactors can display compensation information in local currencies. The exchange rate is set through
currency conversion tables that are imported into the system.
There are three different currency views, a ‘functional’ currency (i.e., all forms will be displayed in the same
currency for all users), local currency (i.e. a form will display salary and other information for an employee in that
employee’s currency) or ‘planner’ currency (i.e. all employees’ salary and other information will appear in the local
currency of the compensation planner).
Exchange rates must be included for all possible currency combinations. For instance, a manager in Great Britain
(GBP) who is planning for a team in the Eurozone (EUR), must have the exchange rate for the pound sterling and
the euro. Use only one rate for each pair of currencies – the system will calculate the inverse rate as needed.
Pay Matrix
The salary pay matrix is a table that defines ranges of pay based on grade level and up to three optional attributes
(Example: country, city, and/or job level). Pay matrices define the minimum, midpoint, and maximum pay levels for
each grade and are required for compa-ratio and range penetration calculations.
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Proration
SAP SuccessFactors has a set of standard functions that support the majority of implementations. Complex
configuration is possible, if required.
Proration
Paying proportionate employee increases correctly from their hire date or from the last review date can be done.
Prorating can be applied to a single component increase or to the aggregate. The two prorating types are Salary
Prorating and Raise Prorating.
Salary Prorating: Can be applied to single increase component, e.g. prorate merit, but not adjustment. Proration
percentage can also be applied to budget.
Raise Prorating: This will prorate the aggregate increase to salary, proration percentage will be applied to Merit,
Adjustment and Promotion.
Note: You will work with your consultant to determine the proration option that works best for your organization.

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Proration Types
Option 1: Raise Proration
- Planner enters full amount. System calculates the prorated total amount at end. Totals rows and
budget not affected
Ex: Proration = 50%
Without Proration With Raise Proration
Merit Guideline: 4-6% 4-6%
Planner enters increase Amt: 2,000 2,000
Total Increase: 2,00 1,000 (system calculates at end)
Option 2: Salary Proration

 Planner enters prorated amount. System prorates guidelines.
Ex: Proration = 50%
Without Proration With Salary Proration
Merit Guideline: 4-6% 2-3%
Planner enters increase Amt: 2,000 1,000
Total Increase:
© 2016 SAP SE or an SAP affiliate company. All rights reserved.
2,000 1,000 (based on planner Internal
entry) 29
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Proration Options
Option 1: Date calculation

 With date-based proration, SAP SuccessFactors Compensation calculates the proration percentage based
on what was specified as the start and end dates of the compensation planning period and the start date and
end date of the employee in the role.
 Example: Review period as 1/1/2017 – 12/31/2017 or 365 days
Option 2: Enter percent on employee import file

 Calculate percentage outside of system and import

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Benchmarks for Salaries
SAP SuccessFactors offers the Compa-ratio: Comparison of employee’s salary to midpoint

following benchmarks, which are both Formula: salary / target
calculated using the employee data and
Example: Salary of 105,000
the pay matrix data: Grade Min, Target, Max : 90k, 100k, 110k
Compa-ratio = 105,000 / 100,000 = 105% (or 1.05)
Compa-ratio: defines the employee’s
pay as a percentage of the midpoint in Range Penetration: Comparison of employee’s salary to minimum
the salary range. and maximum
Range Penetration: The level of an Formula: salary – min / max – min
individual’s pay compared to the total Example: Salary of 105,000
pay range, rather than compared with Grade Min, Target, Max : 90k, 100k, 110k
the midpoint. Range penetration = (105,000 – 90,000) / (110,000 – 90,000) = 75%
Either or both of these can be displayed

on the compensation form. A choice of
one of these may optionally be used as
part of the criteria for guidelines.
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Budgets
Companies use a variety of factors to determine the overall budget for each employee. Some organizations have
very formal procedures for establishing the compensation budget and others have simple, flat percentage
increases.
SAP SuccessFactors Compensation has the ability to mirror the calculation in order for planners to see the
allocated amount for their teams. The team budget is displayed in the form. The budget can also be a soft budget
where overspending is allowed but would be displayed in red text so those in approval levels could see.
Conversely, the budget can be enforced by forbidding entries outside of budget parameters.
There are multiple ways to handle budgets. Your consultant will work with you on the best approach based on
your requirements.

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Budgets

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Guidelines
Guidelines provide planners with rules on how much of an

increase to give to employees based on certain criteria.
For example, such criteria can be based on performance
ratings, job level, budget group, where they are in the
range, and so on.
Guidelines are available for the following compensation
components, such as:
 Merit
 Promo
 Lump sum
 Stock
Your consultant will discuss with you the complete
component list.
Guidelines can be configured to have a hard stop (so that
planners will not go beyond the maximum allowed
recommendation) or can be configured to allow planners
to exceed the maximum (but they will be forced to add a
comment and
© 2016 SAP SE or an SAPjustify the Alladditional
affiliate company. rights reserved. increase). Internal 34
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Eligibility
To determine who is eligible for merit raises, salary increases, promotions, and so on, you can define eligibility
rules that work as filters. But first, the starting point of eligibility should first be decided. Options include:
 All active employees are eligible
 No employees are eligible
Rules can be defined at three levels:

 Compensation plan template level
At this level, rules define who should be included (or excluded) in the planning cycle.
 Component level
At this level, rules define who should be included (or excluded) in the Salary, Bonus, and Stock tabs. If users
appear on the worksheet but are ineligible for one of the components, their names will appear on the
worksheet, but all data will be grayed out for that component.
 Field level
At this level, rules can be applied to: promo, merit, extra, extra2, lumpSum, lumpSum2, stock, options,
stockUnits, stockOther1, stockOther2, and stockOther3. If a user is ineligible for one of these fields, the field
will be grayed out so the compensation planner can't edit the field.
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Eligibility

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Tips and Best Practices
1. Document your process prior to the kick-off. This does not need to be a detailed document, but you should
have a high-level overview that may be passed along to the consultant.
2. Keep your workflow simple. This is especially true for your first year. Consider the many level of approvals,
which can lead to higher level managers getting numerous emails. Complex approval process such as iterative
and steps requiring signatures for certain exceptions which could lead to prolonged process.
3. Provide a dedicated resource. Compensation Department may be small relative to the overall organization
and compensation analysts and managers are normally taxed with numerous high-level projects which
prevents them from fully comprehending what they expected to learn during implementation.
4. Identify the system admin before or during project kick off. This allows the consultant time to have the
admin practice and demonstrate their knowledge.
5. Ensure that the implementation team has easy access to key stakeholders. Ideally these stakeholders
should be involved in the project and have the authorization to make any necessary decisions when needed.
6. Have your own (internal) discussions to map out current processes and roles. Taking the time for this
first step helps ensure that these roles will be translated into Role Based Permissions (RBP) accordingly.

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Tips and Best Practices
7. Keep the repurposing of system fields and functionality to a minimum. SAP SuccessFactors is very
flexible and allows for the repurposing of many items to meet a client’s needs. However, overuse of this
flexibility may cause problems with future implementations because other modules may require the use of
certain functionality. When there is no other option, these changes should be well documented and easily
accessible by future consultants.
8. Review the latest release information as upgrades and enhancements occur quarterly. However, future
functionality is not in scope during an implementation.

38
Decisions Checklist
• In your organization, who are currently the • Who is eligible for what types of compensation?
compensation planners?
• Can eligibility be defined by a formula with data
• Which of the three structures will you use: standard contained in your HRIS? Are there exceptions? If
suite hierarchy, rollup hierarchy, or custom yes, what are these exceptions?
hierarchy?
• What compensation-related components are
• Does the compensation planner differ by planning relevant to you (merit, promotion, adjustment, lump
element? For example: Is merit conducted by the sum, etc.)?
direct manager, but stock planning only performed
by employees of a certain level? • Is proration used for any of the components? If so,
what are the proration rules?
• Is your current plan a global program?
• Is everyone in agreement on how to proceed

globally?
• If so, do they have common

processes/approaches?
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Decisions Checklist
• Are performance ratings used to drive any of the • Who will be responsible for insuring pay matrices
components? If so, where do they come from? are correct and formatted for SAP SuccessFactors
Compensation?
• What are the guidelines for each component? Are
guideline limits hard or soft? • Is there a budget for any/all of these compensation
components? If so, how is the budget determined?
• If a compensation planner’s entry is out of Is it the same globally or does it differ by
guidelines, should a comment be required or organizational unit? Are budget limits hard or soft?
forced? If so, for which components?
• What benchmark is used? Compa-ratio or range

penetration?
• Do you use multiple currencies? If so, how will the

rate table be managed? Will the plan be defaulted
to local or functional currency?

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The Process
Introduction
Once the Compensation Form Template is configured for the compensation cycle, the forms are launched. The
route map determines the chain of approvals and reviews.
While Executive Review offers an alternative method of reviewing, compensation planners are notified in their To
Do lists that they have compensation planning to complete.

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Route Maps
A route map determines the workflow a compensation worksheet will follow. When recommendations are entered,
the form is routed through a configurable approval process. The worksheet continues to move from planner(s) to
approver(s), sometimes going back and forth a couple of times between two employees, until it is complete.

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Executive Review
Planning in SAP SuccessFactors Compensation centers around a Compensation Planner’s team. However,
visibility into the entire process and all planning can be gained through Executive Review.
Managers with Executive Review privileges can review compensation recommendations across their areas of
responsibility and down the hierarchy without having to open individual forms. In this way, they can have
knowledge of the compensation planning but not necessarily have to be part of the route map approval process.
Managers can use Executive Review to ensure equity among employees and teams and to review budget
allocations.
Executive Review can be configured as read-only or with edit privileges. Edit privileges allow adjustments to
individual employee compensation recommendations.

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Executive Review

45
Hierarchy-Based Approvals
Hierarchy-Based Approvals is an alternative method

for managing the compensation planning approval
process that does not use a route map. This method
allows the compensation manager to drill down
through an organization to view the decisions that
have been made. Once the manager is satisfied, a
single button allows him/ her to “approve all” for
his/her entire organization.
It is important to note that hierarchy-based approvals

is not valid for Variable Pay configuration, and if
planning on using Variable Pay, this may not be
recommended in order to prevent confusion to end
users of having two separate approval mechanisms.
Be sure to discuss fully with your implementation
consultant if you think this method is one your
company should consider using.

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Decisions Checklist
In your organization, what timeframes are optimal for compensation planning?
In your organization, what is the compensation process? Who has approval and review responsibility?
Is there a possibility that this process should change? Who would make that decision? What other
considerations do you have?
Who in your organization will have Executive Review privileges? Will they also have edit privileges?

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Reward Statements and Reporting
Personal Reward Statement
Standard Compensation statement templates can be downloaded from Admin center to create reward statements
for employees. These are very simple statements and many organizations decide to invest in having statements
with more detail.
A standard combined statement template is available in SuccessStore if there is a need to pull information from
both SAP SuccessFactors Compensation and SAP SuccessFactors Variable Pay plans.
More complex compensation statements requiring multiple currencies, languages, custom layouts, formatting,
conditional logic, etc., need to be scoped and priced separately. They are implemented in consultation with your
PS Consultant.
Note: The text of a Reward Statement letter and fields can be configured, but the general layout is set. If your
company requires more complex statements, be sure to discuss with your sales representative or professional
services consultant prior to kickoff as this is not included in an SOW as part of a standard configuration.

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Personal Reward Statement
Generated reward statements

are available for administrators
and managers to bulk print.
Employees can also download

their statements from People
Profile.
Once statements are available,

email notification can be
generated to inform employees
of their reward statements.

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Reports
Introduction
Compensation reports are readily available to provide summarized information on various data.
Compensation reports include:
• Rollup Report
• Compensation Aggregate Export
• Live Metrics
• Executive Review
• Ad-hoc Reports
• Custom Reports

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Compensation Reports
• Compensation Rollup Report:

Selecting the Reports tab within a compensation plan displays the aggregate total values of all users in the
hierarchy below the user in view. Drill down capabilities allow for viewing forms in the hierarchy. This report is
exportable as an Excel workbook.
• Compensation Aggregate Export: This report can be exported via Admin Tools and shows the total
compensation planning data for everyone involved in a compensation planning process.
• Live Metrics: Displays live charts on standard measurements directly within a form or Executive Review.
• Executive Review: Those with Executive Review permission can view compensation data for employees in the
hierarchy below themselves according to selections set by that user’s choice of filters.
• Ad Hoc Reports: Can be created and/or generated by users with the appropriate permissions through the
Analytics/Reporting section of SAP SuccessFactors.
• Custom Reports: The above listed standard reports are available for all compensation implementations. If
your organization would like to develop additional custom reports, you should inform your sales account
manager and/or PS consultant right away. Custom report development adds complexity, scope, and cost to
your implementation. In order to meet your organization’s Go Live date, you should start scoping custom
report requirements as soon as possible. 53
Decisions Checklist
What reporting requirements do you have?
What would you like to see in the reward statements?

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Rewards and Recognition (Spot Awards)
Rewards and Recognition
Rewards and Recognition are events that take place outside the regular compensation planning period. They are
often subject to the same budget, eligibility, guidelines and approval process as focal events, but since
participation is limited, they do not lend themselves well to worksheet tools. As a result, effectively managing
Reward and Recognition and compensation changes is a major challenge for a compensation team.
The popularity of Reward and Recognition programs has been growing. In addition to recognizing years of
service, companies are allocating larger financial budgets and encouraging users to provide timely recognition for
outstanding company contributions or participation in special projects.
SAP SuccessFactors Rewards and Recognition is a fully integrated product within the SAP SuccessFactors suite.
It supports a non-recurring compensation event that is based on a specific contribution or performance. It can be
cash or non-cash and is generally subject to budget and guidelines. It can be peer-to-peer, or delivered within a
manager hierarchy. The award nomination and approval processes can be completed from either a desktop or a
mobile device.
Note: Spot Awards, while included in an SAP SuccessFactors Compensation license, is only a part of a
professional services implementation if called out in the Statement of Work for your company’s implementation
project. If your company is not implementing the Spot Awards feature, you may skip over this section.Internal
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 56
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Key Features
• Reward and recognition can be implemented without

partner or professional services by using the Upgrade
Center.
• Eligibility can be defined using dynamic groups or
Business rules.
• Award categories can be aligned with behaviors that
you want to encourage across your organization.
• Award levels can be specified in accordance with the
level of effort or contribution.
• Guidelines can be defined in different currencies based
on category and level.
• A different approval process or workflow can be used
based on the award amount. For example, all rewards
above $100 would need an additional approval from an
L1 manager.

57
Key Features
• Overall view of the budget and its utilization across the program
• Able to create multiple concurrent programs
• In addition, customers using SAP SuccessFactors Employee Central can have award amounts automatically
published, upon approval. SAP SuccessFactors Intelligent Services provides a vehicle for consuming the spot
award event in real-time and building an integration to an external HR System or your intranet.

58
Total Compensation
Total Compensation
Total Compensation enables Salary and

Bonus planning to be completed in one
worksheet. Previously, Compensation
and Variable Pay were administered in
separate templates resulting in planners
opening two different forms to enter their
recommendations. With Total
Compensation, administrators can
manage both Compensation and
Variable pay using a single template and
planners are provided a holistic view of
employee’s total rewards in one form.
Total Compensation is relevant ONLY when companies:
1. Have Variable Pay implemented
2. When Variable pay approval process is the same as Compensation
3. When Compensation is NOT using Hierarchy-Based Approval
4. When Variable Pay is NOT using Assignment Based ratings
Note: You
© 2016 SAP can
SE or an skipcompany.
SAP affiliate thisAllsection
rights reserved. if your company doesn’t satisfy the prerequisites stated above. Internal 60
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Key Features
• Tools for SAP SuccessFactors Compensation and

Variable Pay are combined to increase admin
efficiency.
• Recommendation is completed in one form.
• Fields from Variable Pay tab can be cross-
referenced in Salary tab.
• Planner can view an employee’s full Variable Pay
calculation without leaving Salary tab.
• A new Total Compensation template can be created
using existing Compensation and Variable pay plans
as baseline.

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Data Protection and Privacy Features
Data Protection and Privacy Features
With recent releases, several new data protection and privacy features have been made available to our
customers and some existing features have been enhanced.
The data protection and privacy features include, for instance, the ability to report on personal data changes and
the capacity to report on all the data subject’s personal data available in the application. Customers will also have
options to configure data retention rules at country level for active and inactive employees that will permanently
purge personal data from SAP SuccessFactors applications.
It is the customer’s responsibility to adopt the features that they deem appropriate. More information can be found
on the SAP Help Portal: http://help.sap.com/cloud4hr

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Next Steps
Now that you have learned about the basic functionality of the SAP SuccessFactors Compensation
solution, review the decision checklists that appear throughout this course and compile your answers
so that you may prepare for the next steps in the implementation process. Be sure to document key
dates, contact information and any questions you want to ask your SAP SuccessFactors Professional
Services Consultant. This will help you make sound decisions as you work toward your business
execution needs.
Key Dates:
Contact Information:
Questions:

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Additional Resources
For more information about SAP SuccessFactors, refer to these resources:
Company Website https://www.successfactors.com
Customer Community https://community.successfactors.com
HCM Suite Help Portal https://help.sap.com/cloud4hr
Training Webshop https://training.sap.com

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SAP SuccessFactors Compensation

Project Team Orientation (PTO)

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 Introduction to SAP SuccessFactors Compensation

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What is the Project Team Orientation (PTO)?

Who is the Audience?

Goals of Compensation Project Team Orientation

Comprehensive Talent & Core HR Applications

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 8

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 9

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 10

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 11

Role-based permissions allow you to control

Granular permissions can be provided according

A separate permission feature called Field Based

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 14

On the compensation planning worksheet, you

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Salary: This is the default worksheet for most

The main purpose of this sheet is to provide

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Stock: The Stock worksheet is for

The Stock tab is typically only used when

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There are also tabs to display Budget,

After a recommendation has been

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The compensation planner has the key role and

SAP SuccessFactors has three different methods for

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Standard Suite Hierarchy

This method is the simplest of

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In the Compensation Hierarchy, the

Employees are assigned to be

The Compensation Hierarchy is most

Every company has a compensation

You may want to implement SAP

User Data File

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Option 1: Raise Proration

Option 2: Salary Proration

Option 1: Date calculation

Option 2: Enter percent on employee import file

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SAP SuccessFactors offers the Compa-ratio: Comparison of employee’s salary to midpoint

Either or both of these can be displayed

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 32

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 33

Guidelines provide planners with rules on how much of an

Rules can be defined at three levels:

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• Is everyone in agreement on how to proceed

• If so, do they have common

• What benchmark is used? Compa-ratio or range

• Do you use multiple currencies? If so, how will the

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 40