The Compensation Management component is new and available as of release 4.0A. This completely new functionality offers a comprehensive method for planning and administering your organization's compensation policies.
The Compensation Management component incorporates the following:
Job Pricing
Used to store results from external job evaluation systems and
marketing surveys. This data is used to build salary structures.
The salary structures can be currency-specific, handle multiple
frequencies, for example, hourly, monthly, annually. You can also
define multiple reference points along the range.
Budgeting
Provides a means of defining and distributing budget amounts for
all compensation plans. You can define organizational units that
are financed by budgets that can then be used by the compensation
administration tool.
Plan Definition
Used to identify all compensation plans within your organization
that can be categorized as Fixed, Variable, or Stock. You can use
this function to define the calculation rules in processing. There
is also a new infotype that allows you to store stock participation
at employee level.
Processing
Enables you to freely define the process steps required to
administer compensation policies. This function identifies
eligibility criteria as well as budget constraints during the
administration process. You can process both single or multiple
compensation plans.
For further information on how to implement this component, refer to the Compensation Management Implementation Guide.