ENTERPRISE COMPENSATION MANAGEMENT WITH SAP ERP HUMAN CAPITAL MANAGEMENT

SAP Solution in DetailSAP ERP HCM

2 Copyright 2007 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.

IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, xSeries, zSeries, System i, System i5, System p, System p5, System x, System z, System z9, z/OS, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, Informix, i5/OS, POWER, POWER5, POWER5+, OpenPower and PowerPC are trademarks or registered trademarks of IBM Corporation.

Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.

Oracle is a registered trademark of Oracle Corporation.

UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.

Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.

HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology.

Java is a registered trademark of Sun Microsystems, Inc.

JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.

MaxDB is a trademark of MySQL AB, Sweden.

SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, PartnerEdge, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (SAP Group) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

3CONTENTS

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Building an Enterprise Compensation Management Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Complete Enterprise Compensation with SAP ERP HCM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Budgeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Compensation Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

The Compensation Plan Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7The Back-End Flow of the Compensation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Compensation Planning for Front-End User Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Long-Term Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

LTI Interfaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Job Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

At-A-Glance Enterprise Compensation Management Infotypes and Architecture Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

SAP Employee Self-Service and the Total Compensation Statement . . . . . . . . . . . . . . . . . . . . . 15

Complete Reporting Functionalities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

The Advantages of Integrated Enterprise Compensation Management . . . . . . . . . . . . . . . . . . 16

4BUILDING AN ENTERPRISE COMPENSATION MANAGEMENT STRATEGY

In an expanding economy, human resources are scarce, and its important to attract and retain the best people. In a recessionary economy, human capital is a major expense that needs to be controlled effectively. But no matter what the global economic situation may be, you need maximum insight and flexibility to manage enterprise compensation. You also need the ability to adapt dynamically to ever-changing circumstances.

With a comprehensive compensation management solution, you can define a strategic compensation policy that applies through-out your enterprise one that motivates employees to support business goals, allows you to respond to change, and improves your companys bottom line. And one that enables you to track, monitor, plan, simulate, and execute that strategy precisely. A comprehensive compensation management solution achieves this by integrating all relevant human resources processes, including the administration of fixed and variable pay, long-term incentives (LTIs), performance management, compensation budgeting, personnel cost planning, salary benchmarking, and payroll.

An enterprise compensation management strategy is crucial for dealing with a rapidly changing business climate and making the most of human resources in the best and worst of economic times. The SAP ERP Human Capital Management (SAP ERP HCM) solution provides a complete solution for enterprise com-pensation management, budget handling, compensation admin-istration, long-term incentives, job pricing, and reporting.

EXECUTIVE SUMMARY

5With SAP ERP HCM, you can maximize the value of your employees and align employee skills, activities, and incentives with business objectives and strategies. SAP ERP HCM also pro-vides the tools to manage, measure, and reward individual and team contributions.

By leveraging integrated HCM tools, youll gain insight into and control over increasingly virtual workforces. Adapt your workforce and IT investments quickly and easily. And significant-ly improve productivity as employees focus more time on value-added activities.

SAP ERP HCM supports processes for recruiting, deploying, developing, motivating, and retaining valuable employees, improving these processes from end to end.

SAP ERP HCM offers a complete, integrated compensation man-agement software solution that helps enterprises of all industries, sizes, and complexities to implement strategic compensation

techniques and achieve their strategic goals. The solution can help you build effective employee compensation programs and support your companys compensation management processes. With numerous integration points, SAP ERP HCM is a true end-to-end solution that powers a fully integrated enterprise compensation management process. SAP ERP HCM supports the major areas in enterprise compensation management: budgeting, compensation administration and planning, long-term incentive administration, and job pricing.

To implement all SAP enterprise compensation management functionality of SAP ERP HCM, you must implement some of its personnel administration and organizational management functionality. SAP ERP HCM provides basic reporting functio n-alities, but for complete HCM analytics, you must install the SAP NetWeaver Business Intelligence component as well.

COMPLETE ENTERPRISE COMPENSATION WITH SAP ERP HCM

Figure 1: Overview of the Fully Integrated SAP Enterprise Compensation Management Solution

SAP Strategic Enterprise Management

Personnel Cost Planning and Simulation Plan costs and generate compensation budgets

Compensation Budgeting Create and distribute compensation budgets

Compensation Administration/Planning/Review Process Perform compensation reviews and LTI granting

Payroll Update payroll and master data

SAP NetWeaver Business Intelligence Analysis and reporting

Balanced Scorecard De ne enterprise goals

Salary Benchmarking Participate in salary surveys Perform job pricing Maintain salary structures

LTI Administration Grant and administer LTIs

Objective Setting and Appraisals

De ne team and individual goals Monitor and evaluate goals

achievement

Incentive and Commission Management (ICM) Calculate sales commissions

and incentives

SAP ERP Operations

SAP NetWeaver

SAP ERP HCM

6To take advantage of SAP ERP HCMs extended enterprise com-pensation management functionality and implement the most robust enterprise compensation management solution that SAP has to offer, you should implement the following functions and applications available with SAP ERP HCM: The objective setting and appraisals functionality of SAP ERP

HCM The personnel cost planning and simulation functionality of

SAP ERP HCM The payroll functionality of SAP ERP HCM The SAP Employee Self-Service and SAP Manager Self-Service

applications The SAP Incentive and Commission Management application The SAP Strategic Enterprise Management (SAP SEM)

application

Compensation management is closely linked with the solutions objective setting and appraisals functionality, so you can auto-matically determine the appropriate rewards when employees achieve particular goals.

Personnel cost planning and simulation functions help you ini-tially structure and compose compensation budgets. You can directly transfer the results of sales commissions from SAP Incentive and Commission Management to your payroll system for distribution to your employees. The results can also be displayed in the compensation planning tool in SAP Manager Self-Service, so managers have a complete picture of the remu-neration their employees receive.

For detailed compensation-related analysis and decision support, SAP NetWeaver Business Intelligence provides specific compen-sation data sets. The reports and analyses you need are based on these data sets.

BUDGETING

With SAP ERP HCM, your compensation specialists can create budget structures for merit increases, performance bonuses, and long-term incentives (LTIs). You can then allocate the budget pool of money (or the number of awards in the case of LTIs) among the different budget units in your company.

Compensation specialists can automatically generate budget structures that are representative of your organizational struc-ture. When required, they can manually edit the structure. When line managers plan and execute their employees perfor-mance awards, they can view these compensation budgets. As they make changes, SAP ERP HCM increments the spent value of the budget against the original distributed budget. This ensures managers follow budget policy and allows you to monitor com-pliance. You can configure SAP ERP HCM to allow or to prevent line managers from exceeding their budgets.

The controlling unit of an organization usually manages com-pensation budgets. You can obtain planned HR expenses by using the personnel cost planning and simulation tool in SAP ERP HCM. Because compensation budgeting and personnel cost planning and simulation are integrated, SAP ERP HCM can auto-matically generate compensation budgets with data that comes directly from the respective cost items defined in forecasts of HR expenses. Implementing this functionality saves valuable time and effort when you create compensation budgets. It also allows for detailed, bottom-up budgeting in addition to traditional top-down budgeting.

7Figure 2: Compensation Budget Maintenance with SAP ERP HCM

You can manage the status of compensation budget structures, ensuring that the pool of money assigned can be used by line managers only after final approval and release.

You can also reassign budget amounts during organizational changes from the time the budget is released to its total deple-tion. This function allows you to reassign the total distributed and spent budgeted amount to another organizational unit.

You can keep track of budget distribution and usage across all levels of your organizational structure using the budget auditing report.

COMPENSATION

Compensation Administration

With SAP ERP HCM, you can define and configure compensa-tion plans that adhere to your corporate policies. You can also flexibly handle exceptions, when applicable.

Line managers access compensation plan information via the compensation planning front-end tool in SAP Manager Self-Service. Within this Web-based tool, managers can simulate, plan, and adjust compensation for their employees. Line managers and approving managers can collaborate on proposed rewards and adjustments using built-in approval functions.

The Compensation Plan Structure

The central entity of compensation administration is the compensation plan, which is part of a compensation program. Employees are assigned to compensation programs via the Compensation Program Infotype (0758). A compensation plan describes the rules and structure of conditions of your employees compensation and how it is treated in the compensa-tion administration process. Rules include eligibility, guidelines, and proration.

For payroll integration, each compensation plan is assigned to a compensation category, and the payment (or number of LTI awards) is stored in the corresponding payroll and compensation infotypes. The compensation categories are: Salary adjustment: Basic Pay Infotype (0008) Regular bonus: Additional Payments Infotype (0015) Off-cycle bonus: One-Time Payments Off-Cycle Infotype (0267) LTI grant: LTI Grant Infotype (0761)

In addition, you can apply company-specific infotypes by using a business add-in.

With SAP ERP HCM, you can review compensation information, including the attributes stored, the review period, and the selec-tion period. You can also define intervals during which a manag-er is allowed to process a compensation plan, which is referred to as compensation review.

8The combination of compensation review and compensation plan forms a new compensation review item. An example of a compensation review item is an award that has to be presented within a certain time frame and takes into account employees who have been with the company for a specified time period. A manager can only select a given review during that valid period of time. The selection period dates define the time period on which the selection of employees is based.

If a review is flagged as an anytime review, then you can process a compensation plan several times throughout the year and more than once within a certain time frame. This approach is typically used to implement spot bonus programs.

You can also define compensation plans globally. Depending on the country, you can assign specific employee attributes. The main attributes of a compensation plan are the following: Eligibility Eligibility rules determine whether an employee can receive a

reward against a certain compensation plan. If an employee fulfills the detailed criteria defined for eligibility, such as service requirements, job, pay scale and grade, appraisals, and target achievements, that employee is considered to be eligible. You can override the evaluation of this criterion using a special infotype, Eligibility Override Infotype (0760), which manages exceptions handling. The evaluation of eligibility can be both time period and date specific.

Guidelines Guidelines determine default values that should be given to an

employee according to your compensation policy and regula-tions. You can use amounts, percentages, or numbers of LTI awards. Guideline values can be based on different criteria, such as an appraisal rating, specific target achievements, or, for example, the compa-ratio of an employee. You can combine up to three criteria when you define a guideline, which allows you to build a multidimensional matrix for the guidelines. You can configure guidelines to allow managers to overwrite the default values. The solution can also suggest default ranges, and managers can choose final values within those ranges. You can also define whether managers should be allowed to go beyond those ranges or not.

Proration If an employee has fulfilled the eligibility requirements for a

particular compensation plan during only a part of the evalua-tion period, you can reduce the suggested guideline value based on the fraction of time during which the requirement was fulfilled. This reduction is called proration and is enabled by applying a proration rule to an existing guideline rule. The evaluation period is a time interval upon which eligibility and proration evaluations are based. Its beginning and ending dates are attributes of the compensation review item.

Rounding You can configure the rounding type and amount for each

compensation plan, after which rounding takes place automatically.

Cost item You can assign cost items from the personnel cost planning

and simulation tool of SAP ERP HCM to a compensation plan. This integrates values from the compensation guidelines for the data collection in cost planning and forecasting.

9The Back-End Flow of the Compensation Process

The Compensation Process Infotype (0759) serves as a common source to store and administer the compensation process flow for all adjustments. The solution automatically creates this info-type when a manager saves a proposed reward using the com-pensation planning sheet in SAP Manager Self-Service. You can create or change a secondary infotype record only after it is activated, which is carried out centrally by the HR department. The infotype that is updated depends on the category for pay-ment defined in the compensation plan. The infotype can be Salary Adjustment (0008), Regular Bonus (0015), Off-Cycle Bonus (0267), or LTI Grant (0761), which is to be sent to the bank for further processing. The LTI Exercising Infotype (0762) is needed to store exercising data coming back from the bank. More details of the LTI design are described in the following discussion of long-term incentives. Figure 3 gives an overview of this compensation process.

Compensation Planning for Front-End User Processes

The solution includes two different user interfaces to support compensation processes for line managers and HR administra-tors. Managers can access a new version of SAP Manager Self-Service. By using the HR master data maintenance transaction, compensation specialists can maintain compensation transac-tions directly on the Compensation Process Infotype (0759). Mass processing of rewards is also available.

The line managers user interface captures information on employee performance, jobs, salary guidelines, budgets, and much more. It provides expert knowledge and situation-specific guidance in an intuitive, user-friendly format and enables more efficient salary planning across the enterprise. It includes every-thing managers need for visibility and control over compensa-tion budgets. Line managers can access expert information and resources to make strategic, equitable, policy-based compensa-tion decisions.

For employees eligible for a specific compensation plan, manag-ers can change the compensation data, such as the amount or percentage for monetary plans, or the number of grants for LTI plans and the effective date provided that you allow this. In addi-tion, they can perform any of the following functions: Enter compensation data Apply percentage Clear entries Apply guideline Raise employees to minimum of salary range Select a new currency Create and store notes for each employee Save compensation data Submit compensation data Exit

Saving

MSS User InterfaceSalary/Bonus/LTI

Business LogicCompensation Process

IT 0759Compensation Process

Activation

IT 0008Basic Pay

IT 0267Off-Cycle Payments

IT 0015AddI Payments

IT 0761LTI Grant

IT 0762LTI Exercising

Figure 3: Architecture of the Compensation Process and Infotypes

10

SAP Manager Self-Service fully supports the approval process. The following functions are available: Approve Reject Check planned compensation Store notes for each employee Exit

There are two ways to determine which columns of information appear on the SAP Manager Self-Service screen. You can config-ure the columns in the back end through configuration, and managers can easily personalize the columns provided after implementation. The main standard SAP-delivered columns contain the following data: Appraisal data Commissions Infotype (0579) Compa-ratio (current) Percent in range (current) Guideline Hire date Job Name Position New salary New compa-ratio New percent in range Notes

Special function modules fill the columns dynamically. Custom-ers can easily define and fill columns with customer-specific data if required.

Figure 4: Sample Column Setup for a Salary Adjustment Plan Within SAP Manager Self-Service

You can display any kind of compensation-related information on an employee just by clicking on the employees name. You can also graphically display comparisons of planned, actual, and survey salary data, the distribution of planned compensation changes, and compensation histories.

11

LONG-TERM INCENTIVES

With SAP ERP HCM, you can create and manage long-term incentives.

LTI administration is integrated with compensation administra-tion functions, which delivers several advantages: You can grant and approve LTI awards from SAP Manager

Self-Service. You can budget for LTIs as you can for salary increases and

bonuses. You can use the guidelines and eligibility requirements used

for compensation administration to grant LTIs.

The LTI plan is one possible type of compensation plan. LTI plans have the following primary attributes: Vesting schedule Determines when awards are vested so employees can exercise

them. This vesting schedule is valid for an entire LTI plan and can also be overwritten at the individual level in the LTI Grant Infotype (0761). The vesting schedule is sent to accounting.

Exercise windows Describe periods of time during which employees can exercise

their awards. The exercise window rule is assigned to an LTI plan. The exercising window rules from customization can be overwritten on the LTI Grant Infotype (0761) to handle excep-tions at the employee level.

Exercise price The exercise price flag determines whether the exercise price is

determined at the date of exercise or is to be maintained in the LTI Grant Infotype (0761) at the time of granting.

LTI Infotypes 0761 and 0762 are for granting and exercising, respectively. As mentioned above, the LTI Grant Infotype is filled when you activate the Compensation Process Infotype (0759), which is created automatically when LTIs are granted by a man-ager in SAP Manager Self-Service. The LTI Exercising Infotype (0762) contains the data about the exercising of LTIs.

The Participant Data Infotype (0763) contains LTI plan partici-pant information. You can store the following information: Insider Director Owner percentage

Life events can influence the expiration date and the vesting schedule of an LTI plan for an employee. The HR administrator can maintain the life event and its effects by running the appro-priate report provided for life event processing, for example, the vesting schedule changes on the LTI Grant Infotype (0761).

LineManager

Activation of Infotype (0759)

Figure 5: Integration Points and Infotypes Affected by the LTI Process

Grantingin MSS

CompensationProcess

Infotype (0759)

ConvertStock Unit

CompensationSpecialist

LTI GrantInfotype (0761)

AccountingInterface

AccountingDepartment

PayrollPayrollResults

ReportingHRAdministrator

SAP NetWeaver BI

Extractor

HRExecutive

CancelLTI Plan

HRAdministrator

LTI ExercisingInfotype (0762)

LTI ParticipantData Infotype

(0763)

Data Flow Diagram of the LTI Functions

12

LTI INTERFACES

SAP ERP HCM has LTI interfaces to the following areas: Accounting The solution provides a function module to the accounting

features of the SAP ERP application. The accrual engine needs LTI data to compute provisions for awards.

Budgeting Allocated and spent budgets can be converted as a conse-

quence of a stock split. Therefore, budgeting needs to use an LTI function module to convert budgets from one stock unit into another.

SAP NetWeaver Business Intelligence (SAP NetWeaver BI) SAP NetWeaver BI handles granting, exercising, and vesting

data. You call the appropriate extractors from SAP NetWeaver BI and adjust them to the new data model.

Compensation administration LTI functions are closely connected to compensation adminis-

tration. An important program interface between the two functions is the activation process of the Compensation Pro-cess Infotype (0759). The LTI function provides a function module as part of the activation. Compensation administra-tion uses LTI function modules to convert the number of awards from one stock unit to another.

Payroll Payroll evaluates the LTI Exercising Infotype (0762). You define

the wage types for the respective amounts, and the payroll engine can calculate the appropriate tax. The tax calculation is delivered in the international payroll engine, along with specifics for German and U. S. regulations.

Total compensation statement The total compensation statement shows the number of

granted awards and the granting date. This data is read from the LTI Grant Infotype (0761).

JOB PRICING

SAP ERP HCM delivers extensive salary benchmarking functions so your compensation professionals can analyze your companys pay policy and pay structure for market competitiveness. They can also determine the best possible compensation strategy revi-sions, quickly and accurately.

SAP has developed a new job pricing tool for compensation spe-cialists. With this tool they can: Create and maintain an unlimited number of salary survey

providers Import and store salary survey data from any number of pro-

viders, update data as needed, and maintain a history of previ-ous market data

Age salary survey market data Match internal benchmark jobs to survey jobs from multiple

salary survey providers Apply a weighting factor against various matched jobs from

different providers Establish market composite results for jobs and compare inter-

nal salaries against blended market data supported by graphical tools

Adjust internal salary structures based on market findings, including performing regression analyses supported by graphi-cal tools

Extract company compensation data to participate in salary surveys

Link to SAP NetWeaver Business Intelligence to run sophisti-cated analytics and reports

Figure 6 shows the job pricing business process, including all the steps involved and supported by SAP ERP HCM.

13

Once you have imported market data from the survey providers, you create market composite results. This information is stored in the composite Survey Result Infotype (1271) for each internal benchmark job. You can then compare market pay and your company pay for employees, positions, or jobs. You can create multiple composite results, so you can compare different market movement assumptions, provider weightings, and market data aging factors. Figure 6: Overview of the Salary Benchmarking Business Process

Figure 7: Comparison of Market Composite Result to Employees Payments

Business Process of Market Pricing Overview (General)

Select Survey Provider

Organization decides which salary surveys to participate in

Receive Survey Data Submission Form (Online, Disk, Excel,Etc.) from Survey Providers

Job Analysis

Create internal jobs and job descriptions

Job Matching

Match internal jobs to survey jobs

Import Data

Upload job catalog, descriptions, and market data to the system

Age Data

Age market data to evaluation date

Compile Market Data

Create market composite result for internal jobs from matched survey jobs

Weight Data

Weight market data from di erent providers

Data Analysis

Evaluate and compare to current internal compensation

Philosophy

Determine or create compensation philosophy

Determine Market Gap

Identify which jobs or job families require adjustments

Identify Targets

Create market targets for certain jobs or job families

Activate Adjustments

Adjust the current salary structure with the new structure

Adjust Salary Structure

Create proposal for salary structure ad-justments to lead or lag the market

14

AT-A-GLANCE ENTERPRISE COMPENSATION MANAGEMENT INFOTYPES AND ARCHITECTURE OVERVIEW

You can access and maintain all Infotypes using the SAP ERP HCM master data maintenance function. The solution includes the following infotypes for enterprise compensation management: Compensation Programs Infotype (0758) Compensation Process Infotype (0759) Compensation Eligibility Override Infotype (0760) LTI Grant Infotype (0761) LTI Exercising Infotype (0762) LTI Participant Data Infotype (0763) Composite Survey Result Infotype (1271)

Figure 8: Overview of the Enterprise Compensation Management Architecture Including User Roles and User Interfaces

UsersEmployee HRAdministrator ManagerCompensation

SpecialistHR

Executive

Front EndJob Pricing User Interface

Back End

Total Compensation

Statement

LTI Administration Compensation Administration

Budgeting

ExercisingInfotype (0762)

GrantingInfotype (0761)

Compensation Process

Infotype (0759) Budgets

Database

Other SAP ComponentsPayroll Accrual Treasury

MBOAppraisals

Personnel Cost Planning

BWReporting

External ComponentsSurvey Providers

Job Pricing

SurveyResults

Infotype (1271)

ESS MSSMaster Data User InterfaceBudgeting User

Interface

Pay DataInfotypes

(0008, etc.)

Salary Structures

15

SAP EMPLOYEE SELF-SERVICE AND THE TOTAL COMPENSATION STATEMENT

Using SAP Employee Self-Service, employees can always see a total compensation statement the compensation they received from their employer during certain time periods. This statement, which can be customized, can be in multiple formats, including Smart Forms and Adobe Acrobat Reader. The statement can be printed individually or in bulk.

The total compensation statement can include sales commission from SAP Incentive and Commission Management. It lists data from four different areas within SAP ERP HCM: Payroll, including salary and bonus Benefits, including health plans, insurance plans, savings

plans, flexible spending accounts, miscellaneous plans, stock purchase plans, and credit plans

Other compensation, including LTIs Personnel development, including additional education and

training and individual development plans

COMPLETE REPORTING FUNCTIONALITIES

SAP ERP HCM provides basic reporting functionalities. You can view and format tabular report results in the SAP list viewer tool. Using this tool you can: Filter data Total and subtotal data Sort data Display data in Microsoft Excel and Crystal Reports Define your own report layouts Export data to Microsoft Word and Microsoft Excel

By implementing SAP NetWeaver Business Intelligence, you can execute more sophisticated reports that go far beyond these functions. SAP NetWeaver Business Intelligence contains a special enterprise compensation management InfoCube (a type of SAP data set) and queries that you can use to analyze all of your com-pensation data in detail. SAP NetWeaver Business Intelligence delivers more than 30 standard queries with enterprise compen-sation management content.

16

THE ADVANTAGES OF INTEGRATED ENTERPRISE COMPENSATION MANAGEMENT

SAP ERP HCM offers an integrated solution for enterprise com-pensation management that delivers the following advantages: Broad, real-time, and reliable information availability and

exchange for decision making Strategic personnel management and support for your overall

enterprise strategy Integration with all vital SAP components inside and outside

SAP ERP HCM ensuring communication with all parties involved and full support of the entire enterprise compensa-tion management process

Improved productivity through user-centric applications that ensure HR professionals and managers have the right tools and an easy-to-use interface

Unlimited reporting functionalities through standard reports, extensive SAP NetWeaver Business Intelligence reports, and ad hoc query functionalities so you can take immediate action when required

Flexible customizing to ensure that you can set up all possible compensation plans according to your specific needs

And the advantages just keep coming. To help you cope with change, SAP continuously improves SAP ERP HCM. Enhance-ments to the solutions enterprise compensation management features and functions will ensure an even greater ability for your company to implement a flexible strategic compensation policy, supported by a comprehensive compensation management solu-tion that helps you achieve your goals.

To learn more about SAP ERP HCM, visit the SAP Web site at www.sap.com/hcm.

www.sap.com/contactsap

50 070 704 (07/11)