This post was originally published on this site
A special Thank You to the many contacts across the board at SAP who made this blog possible by connecting with us and providing insights on leading market practices.
Introduction
The reason for this blog comes from the dreaded comment/requirement by customers to Compensation implementation partners in workshops : “We understand your leading practice of loading a budget % based on attributes (for example: attribute 1=country / attribute 2=state) but all we get from Finance each year is a maximum amount to be spent so we’d like to be able to assign a flat amount to each planner worksheet”. In this blog we try to give tools to understand the bottom-up logic that facilitates the creation of budget percentages based on attributes that stick to SAP SuccessFactors leading practices (see budget section).
Walkthrough of the Budget Design Process before it gets loaded as a % in SAP SuccessFactors Compensation Module.
With the example of a January salary review cycle start.
The budget design process for salary increases involves different approaches across countries and roles. While some companies apply a flat dollar increase to all employees across the board, most companies use a percentage-based or bottom-up approach, breaking down the overall budget into percentages by attributes based
