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The Administrative Clerk performs all types of administrative tasks and data entry. The
compensation data typically covered in their user role would include maintaining personnel
records, maintaining compensation data, performing pay scale changes and running
compensation related reports.
Compensation Management uses information from different Human Resources components.
Budgeting and compensation administration is performed for organizational units as well as
for employees.
Compensation
The
Definition
Job Evaluation Results Infotype (1050)
This infotype stores the results of the job evaluation for the jobs/positions in your organization.
Use
Use the job evaluation results to determine the relative worth of each job and position in your
organization. You can also use this infotype to indicate whether the job is a benchmark job
Structure
This infotype is divided into subtypes. Use the subtypes to represent different job evaluation
systems. This allows you to store different sets of job evaluation results.
Subtype EV01 = Hay System
Definition
Salary Survey Results (infotype 1051)
This infotype stores the results of the surveys. This includes information such as the average
base salary and average bonus. Salary surveys allow you to convert the worth of jobs and
positions in your organization into dollars, pounds, euros, etc.
Use
Use surveys to compare salaries in your organization to salaries paid for similar jobs in similar
organizations.
Structure
This infotype is divided into subtypes. Use the subtypes to represent different types of salary
surveys. This allows you to store different sets of survey results.
Subtype SV01 = Survey comparing your organization with organizations in the same
or related business
Subtype SV02 = Survey comparing your organization with organizations in the same
geographical area
Subtype SV03 = Survey comparing your organization with organizations of a similar
Size
Prerequisites
Before you can store job evaluation results and salary survey data at the job level, you must
have:
_ Jobs in the SAP R/3 System
_ Salary surveys and job evaluation results
Process Flow
1. Select the jobs you want to edit.
2. Store the compensation-related at the job level, that is, create infotype records for the jobs
and positions using the infotypes provided.
3. Determine the internal worth of the jobs and positions in your organization based on internal
and external data available.
4. Associate the jobs and positions to pay grades.
5. Generate your salary structures based on this data.
Job Pricing
Prerequisites
To perform job pricing, the following must exist in the SAP R/3 System:
_ Jobs and positions
_ Organizational units, if you want to perform job pricing over the organizational unit
Procedure
1. From the Compensation Management screen, choose Administration _ Job pricing
The Compensation Management - Job Pricing screen appears
2. Decide whether you want to perform job pricing for all your jobs at once or per
organizational unit.
3. Enter data as required and choose
The system displays a list of jobs together with the following information per job:
_ Job name
_ Number of positions associated with the job
_ Evaluation group
_ Benchmark job indicator
_ Evaluation points
_ Job code
_ Average basic salary
4. To create and change the job pricing data, select the relevant jobs and choose
The Compensation Management - Job Pricing dialog box appears. Each tab in the tab
Result
You have now successfully completed job pricing and have entered all the necessary
compensation-related data for each job. You can now use this data to generate your salary
buy. There are also special incentives that the survey provider gives if your company participates in the
survey itself.
ECM allows us to create and maintain as many survey providers as we want by selecting the Provider
Data link.
Once we click on Import Data, we must select our Survey provider from our list. We can search all the
survey providers by entering * in the Search for field and hit Go. All the available survey providers will
be displayed and we can click on the one we want.
The survey job catalog allows loading all the jobs related to the survey provider.
The Survey description allows loading all the job descriptions from the survey provider.
The survey market data allows loading all the market survey information from the survey provider.
Each of the file loading activity follows a process
Upload the file
Map the fields from the vendor to SAP
Import the data
4.1.5
Job Matching
Each survey has their job titles. They have to be deliberately matched to the job titles in the company. Same
titles dont guarantee that the jobs are the same. There has to be a due diligence that needs to be done
before the mapping exercise is completed and approved. After the data import is complete, the jobs from
company are matched to the jobs from the survey.
Eligibility
.
Path
Easy Access
Menu
Description
Using the grouping define earlier, you will now link them through a decision tree.
Example: The employee record has to be in Compensation Area US, with
employee group 1 Regular in their organizational assignment (infotype 0001),
to be pass in the eligibility grouping called SALR Salaried Employees.
You could base your decision tree upon various decision factors. Such as
Personnel Area, Personnel Sub-Area, Employee Group, Employee Sub Group,
MOLGA, Pay Type, Pay Area, etc. To keep it simple, most will use the first 5
from the
When you create a compensation adjustment such as a merit increase, you can then specify who
qualifies to participate in the adjustment. If everyone in your company qualifies for the
adjustment you do not need to set up any qualifying rules.
If
the compensation adjustment specifies qualifying criteria such as 3 months service you need
to set up a rule.
Qualifying criteria includes data such as hire date or length of service, number of hours
worked and ranges for pay scale, pay grade, job, salary and performance details.
For individual employees for whom you make an exception concerning qualifying criteria, you
can use the Compensation: employee eligibility infotype (0381). For example you may
overlook the 3 months length of service for some new employees.
You can use eligibility groups if you have differing criteria for some groups of employees. For
example to qualify for a bonus let us suppose that everyone must have 12 months service, with
the exception of Executive employees who only need to have 6 months service. In this case
you set up 2 rules, one for the group Executive and one for the rest of the company.
When you define a group you use a feature to link the group to your employees. You can use
the organizational assignment details such as employee subgroup.
You can also employ user-defined criteria with a user exit.
Guidelines
Definition
Guidelines determine how compensation adjustments are calculated. Guidelines are values of a
range for compensation. Ranges can be a percentage, an amount, or a unit.
Use
Compensation adjustments are decided by the manager. Compensation Management allows you
to set guidelines for compensation calculations, or set limits for the managers recommendations.
Structure
SAP R/3 System contains three types of guidelines:
_ fixed
_ Matrix
_ User-defined
Fixed Guidelines
Compensation adjustments are calculated using a fixed percentage, fixed amount, or a fixed
number.
Matrix
Compensation adjustments are calculated using matrices, or one or more criteria. Matrix
Path
Easy Access
Menu
Description
Similar to define eligibility grouping feature, you are defining the decision
tree to associate the grouping for guidelines
When guidelines are applied to an individual, the proration rules will prevent
them from being able to receive full amount.
Example: The guideline suggest 5% increase. One employee was hired into
the company, but only worked 6 months. The system will prorate and suggest
only 2.5%
Matrix Guidelines
- Length of service
- Position in the salary grade
- Performance appraisal results
- Age
User-defined methods are allowed.
Error control and monitoring are flexible
Calculation of individual salary adjustments are based on multiple criteria
Example:
1.An employee who is with the company for less than 6 months and who has a performance
result of more than 80 points will get a merit increase of 3%.
2.An employee who is with the company for more than 6 but less than 12 months and has also
a performance result of more than 80 points will get a merit increase of 4%.
configure. The basic version uses infotype 0025. The configuration for it is
located at
IMG > Personnel Management > Personnel Administration > Payroll Data >
Appraisals
At each of the Method of Dimensions youve identified earlier, you will link those
to the matrix dimension you are creating here. Usually, you will use the same
description between the two.
In order to establish a matrix guideline, segments have to be defined for each dimension.
Using each of the matrix dimensions youve created, you are now defining the
values for that dimension.
For example, If the person performance appraisal was a C, from a system
perspective, he falls between 2.002 and 3.001 value.
Note: Segment field is a four characters alphanumeric field