Introduction

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 ?

Recommendations

• 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 base on a business rule to be determined with Comp leads).

• 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).

• Make sure FO Pay Ranges table entries have all attributes entered (no blanks). See this blog.

• 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.

• Make sure Global Assignment cases have a unique field value for each situation (usually home/host in EC Job Info controlled by different work assignment values).

• Check that there is enough data history (one year) to run the first Variable Pay cycle.

• 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.

Thanks to contributors from SAP: Christian Smith, Phil MacGovern, Anna Liebscher.

Additional ideas welcome in comments.

Links to similar topics:

• Compensation Implementation Leading Practices

All the best
Xavier