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Compensation Management Improves Overall ProductivitySuccessful Companies Use CompensationPay for performance is the #1 tool for achieving financial results accord-ing to 64% of senior executives, based ona Management Global Results Survey conducted by Bain & Company. Through pay-for-performance, successfulcompanies signal their commitment to high performance. Tying compensation to the successful completion ofgoals that are aligned to corporate objective shifts company performancecurve to the right, and rewarding topperformers increases their engagement and retention. In fact, based on astudy by the Giga Information group,employee compensation management may improve employee retention by as much as 27%.

Companies with higher standard deviations in compensation have 15 – 20 % greaterperformance when measured by revenue and profit growth.

Bersin and AssociatesThe Next Wave in Integrated Talent Management, Jan 2009

SuccessFactors Compensation Customers see a 3.68% improvement in productivity

SuccessFactors customers have seen real business results that have helped improve the top and bottom line. Based on a survey with over 500 customers, they found they were almost 2.9% more productive, with customers using Compensation seeing greater productivity improvements.

BUSINESS IMPACT AVERAGE COMPENSATION CUSTOMERS

Productivity improvement 2.9% 3.68%

Faster communication of strategy change 1 week 1.5 weeks

Increased time spent on strategic priorities 5.5% 5.65%

Increase in high performers 4.9% 11%

Decrease in low performers 13.9% 16.5%

Decrease in turnover rate 8.9% 12.67%

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SuccessFactors has the most Powerful CompensationSuccessFactors comprehensive Compensation Management is a component of the Integrated Performance and Talent Management Suite. The solution is easy to use for managers and has powerful and flexible self-service capabili-ties for compensation administrators. With SuccessFactors Compensation Management companies can:

Create a high performance cultureThrough pay-for-performance, signal your commitment to highperformance, reward top performers that increases engagementand retention

Optimize the budget and maintain complianceDetermine compensation based on company performancemetrics, ensure managers stay within their budgets and stopoverpaying low performers

Save time and cost, and eliminate errorsThrough an easy-to-use automated system, comp administratorsand managers save time and costs as well as reducing errors.

Easy to Use for Managers

Auto-calculated increases incorporate several elements like performance

rating, pay grade, or compa-ratio to make the process more objective and

enforce company policies

Manager adjustments Managers can view detailed employee information and performance reviews that are inputs to compensation decisions and adjust the auto-calculated merit increases

Budget Optimization Managers can perform real-time “what-if” scenario

analysis by allocating higher merit increases to top performers and instantly

seeing the budget impact

International support allows compensation forms to display the manager’s

local language and show monetary amounts in thecurrency of choiceCom-pensation seeing greater productivity improvements

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Managers can use centralized location to access all the information they need to make compensation decisions

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SuccessFactors has the most Powerful CompensationPowerful Self-Service Administration

SuccessFactors powerful self-service administrators saves time and costs, avoids errors and can support complex compensation rules to support your organiza-tion’s compensation strategy. SuccessFactors Compensation provides maximumflexibility for all aspects of compensation including supporting compensation guidelines, budgets, currency exchanges, user information uploads, employee changes, and -

Configurable workflow and approval rules meet thespecific needs of virtually any compensation process,regardless of complexity

Powerful Rules and Calculation Engine setup implementation specific formulas including basic arithmetic calculation, lookup table support and various custom variables

Powerful Eligibility Engine defines which employee or group is eligible for stocks, promotion, bonus, merit increases.

Powerful Self-Service AdministrationSuccessFactors has Strongest Integrated Performance and Talent Management Suite

• 2800+ customers, majority have multiple modules including goal and performance

• Positioned in Leaders Quadrant for the Gartner’s Magic Quadrant for EPM Software

• Single code-base organically built resulting in tight integration and consistent user experience

Insights from Suite drive Powerful Compensation

• Overall performance ratings by managers and peers, or performance on specific goals and competencies

• How critical the position or role is to organization

• Similar roles in organization

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About SuccessFactors SuccessFactors is the global leader in business execution software. Our suite of on-demand applications is relied upon by companies of all sizes around the world to align their businesses to their strategies, arm their organizations for success and incite their employees to greatness – every day. For more information, visit www.successfactors.com or call 1-800-809-