Compensation Management

Description

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.

Installation information

For further information on how to implement this component, refer to the Compensation Management Implementation Guide.