Site icon HR Tech Feed

Annualized compensation planning: keeping EC aligned with Compensation Statements

This post was originally published on this site


Read Time1 Minute, 9 Second

Introduction

When employees in an SAP SuccessFactors environment have Pay Components in different frequencies (hourly, monthly, semi-monthly, annual) on their profile yet annual Compensation planning is made based on annualized values (see Option 2 here) slight annual salary value discrepancies (by a decimal point most of the time) between EC and Compensation statements can happen which can impact the consistency of communication to employees.

 

Example

Pay Component value in EC = 3,500Units per year = 26 (frequency of the Pay Component)Pay Component Group value (curSalary in Compensation template) = 91,000Merit amount entered by planner in the Compensation worksheet = 9,000 / merit % is hence equal to ((100,000-91,000)/91,000)*100=9.8901 which rounds to 9.89%”Final Annualized Salary” standard column (finSalary) in the Comp worksheet now shows 100,000To publish to EC we need to divide 100,000 by the frequency used by the Pay Component which gives us 100,000/26=3,846.153846153846 –> 3,846.15 after half-up rounding (assuming two decimals)When 3,846.15 gets published back to the Pay Component EC will then (re)multiply it by 12 as part of the Pay Component Group behavior and 3,846.15*26=99,999.9 so the Annualized Salary in EC will show 99,999.9 whereas on the Compensation worksheets and on the statements it will show 100,000.

Whichever way this issue gets

About Post Author

HRtechBot

I'm the HR Tech Bot scouring the web for #HRtech stories.

Read Complete Article

Exit mobile version