Strategically managing compensation is a key human capital management initiative that can greatly impact your company's success, and with SAP ERP HCM Enterprise Compensation Management you have the tools you need for an effective and consistent strategy. So if you're an HR professional, IT professional, or SAP ERP HCM consultant who needs to know how to deliver and support a successful enterprise compensation implementation using SAP, you'll find exactly what you need in this detailed, practical book.

Quickly learn the configuration and development strategies needed for a successful implementation and find out which tools are available to effectively manage and support both monetary and nonmonetary budgets, as you explore the budgeting cycle from preparation, initialization, and maintenance to closure. Then, discover how effectively ECM integrates with other SAP ERP HCM modules, including personnel administration, organizational management, personnel cost planning, performance management, and payroll.

The authors go well beyond the basics to explore job pricing functionality, including the process of setting up vendors, participating in salary surveys, importing market data from surveys, analyzing market data, and updating pay structures. Plus, they provide you with unparalled insight into advanced issues in a typical ECM implementation such as on-cycle growth and/or organizational promotions during the compensation cycle, off-cycle increases, and second level approval of compensation.

Highlights

• Business Add-Ins (BAdIs)
• InfoTypes
• Reporting
• Authorizations
• Global Implementation Considerations
• Self-Service Functionality
• Process Administration

About the Author(s)

Jeremy Masters is an author, speaker, and SAP Human Capital Management subject matter expert. He is also the co-founder and Managing Partner of Worklogix, which provides SAP HR professional services and software solutions. Christos Kotsakis is an author, speaker, and a subject matter expert on Human Capital Management and self-service applications. He has been delivering complex enterprise solutions for more than twelve years.

Table of Contents

• 1 ... Introduction ... 21
• 1.1 ... Target Audience ... 22
• 1.2 ... Book Layout ... 22
• 1.3 ... Product Releases ... 24
• 1.4 ... Summary ... 24
• 2 ... Compensation Management Overview ... 25
• 2.1 ... Compensation Planning Overview ... 26
• 2.2 ... Salary Benchmarking ... 28
• 2.2.1 ... Determining Which Jobs to Evaluate ... 29
• 2.2.2 ... Update and Extract Job Data ... 29
• 2.2.3 ... Selecting Providers for Survey Participation and Analysis ... 30
• 2.2.4 ... Updating Salary Structures and Developing the Budget ... 30
• 2.3 ... Budgeting ... 31
• 2.4 ... Compensation Planning ... 32
• 2.4.1 ... Eligibility ... 33
• 2.4.2 ... Guidelines ... 34
• 2.4.3 ... Proration ... 35
• 2.4.4 ... Planning and Review ... 36
• 2.5 ... Calibration ... 37
• 2.5.1 ... Realizing Calibration Objectives ... 39
• 2.5.2 ... Revising Proposed Recommendations ... 39
• 2.6 ... Payroll ... 39
• 2.7 ... Employee and Manager Review ... 40
• 2.8 ... Off-Cycle Increases ... 40
• 2.9 ... Summary ... 41
• 3 ... Baseline Configuration and Infotypes ... 43
• 3.1 ... Building Blocks ... 43
• 3.1.1 ... ECM Activation ... 44
• 3.1.2 ... Compensation Area ... 45
• 3.1.3 ... Compensation Plan ... 48
• 3.1.4 ... Compensation Review ... 49
• 3.1.5 ... Compensation Review Item ... 51
• 3.2 ... Eligibility ... 57
• 3.2.1 ... Compensation Program ... 58
• 3.2.2 ... Eligibility Variant ... 63
• 3.2.3 ... Eligibility Grouping ... 64
• 3.2.4 ... Appraisal Rule ... 67
• 3.2.5 ... Eligibility Rules ... 68
• 3.2.6 ... Eligibility Override ... 70
• 3.3 ... Guidelines ... 71
• 3.3.1 ... Guideline Variant ... 71
• 3.3.2 ... Guideline Grouping ... 72
• 3.3.3 ... Proration ... 74
• 3.3.4 ... Guideline Matrix ... 76
• 3.3.5 ... Guidelines ... 81
• 3.4 ... Compensation Plan Attributes ... 83
• 3.4.1 ... Plan Attributes ... 83
• 3.4.2 ... Plan Payroll Data ... 84
• 3.5 ... Long Term Incentives (LTIs ... 88
• 3.5.1 ... Stock Unit ... 89
• 3.5.2 ... Vesting ... 90
• 3.5.3 ... Exercising ... 91
• 3.5.4 ... LTI Plan Attributes ... 92
• 3.5.5 ... Life Events ... 96
• 3.6 ... LTI Infotypes ... 98
• 3.7 ... Summary ... 101
• 4 ... Compensation Budgeting ... 103
• 4.1 ... Budgeting Overview ... 103
• 4.2 ... Life Cycle ... 105
• 4.2.1 ... Preparation ... 105
• 4.2.2 ... Initialization ... 114
• 4.2.3 ... Maintenance ... 128
• 4.2.4 ... Closure ... 131
• 4.3 ... Locking ... 132
• 4.4 ... Infotypes ... 134
• 4.4.1 ... Infotype 1000 (Object ... 134
• 4.4.2 ... Infotype 1001 (Relationships) ... 134
• 4.4.3 ... Infotype 1500 (BS Element Management ... 135
• 4.4.4 ... Infotype 1520 (Original Budget) ... 135
• 4.5 ... Configuration ... 136
• 4.5.1 ... Defining Reference Currency ... 137
• 4.5.2 ... Defining Budget Types ... 137
• 4.5.3 ... Define Budget Periods ... 138
• 4.5.4 ... Set Budget Control Parameters ... 140
• 4.6 ... Summary ... 141
• 5 ... Process Administration ... 143
• 5.1 ... Process Overview ... 143
• 5.2 ... Prepare ... 145
• 5.2.1 ... Eligibility Rules ... 146
• 5.2.2 ... Budgets ... 149
• 5.2.3 ... Salary Ranges ... 149
• 5.2.4 ... Guidelines ... 151
• 5.2.5 ... Compensation Worksheet Proofing ... 153
• 5.2.6 ... Prerequisites for Multilevel Approvals ... 154
• 5.3 ... Plan and Review ... 156
• 5.4 ... Calibrate ... 157
• 5.5 ... Activate and Communicate ... 159
• 5.6 ... LTI-Specific Processes ... 163
• 5.6.1 ... Process Life Events ... 164
• 5.6.2 ... Handling Stock Splits ... 166
• 5.7 ... Summary ... 168
• 6 ... Self-Service ... 169
• 6.1 ... Delivered Compensation iViews ... 170
• 6.1.1 ... Compensation Planning ... 171
• 6.1.2 ... Compensation Approval ... 181
• 6.1.3 ... Compensation Review iView in Enhancement Package 4 ... 182
• 6.1.4 ... Salary Development ... 185
• 6.1.5 ... Salary Data ... 187
• 6.1.6 ... Long Terms Incentives ... 189
• 6.1.7 ... Compensation Eligibility ... 190
• 6.1.8 ... Compensation Guidelines ... 192
• 6.1.9 ... Compensation Adjustments ... 193
• 6.1.10 ... Salary Survey Data ... 194
• 6.1.11 ... TCS ... 197
• 6.2 ... Summary ... 199
• 7 ... Business Add-Ins (BAdIs ... 201
• 7.1 ... BAdI Overview ... 202
• 7.2 ... BAdI Group: Compensation Planning and Administration ... 206
• 7.2.1 ... HRECM00_GUIDELINE (Determine Guidelines ... 207
• 7.2.2 ... HRECM00_GDEGP (Determines Guideline Grouping ... 208
• 7.2.3 ... HRECM00_MATRIX_SEGM (Method for Matrix Dimensions ... 209
• 7.2.4 ... HRECM00_CARGP (Default Compensation Area ... 211
• 7.2.5 ... HRECM00_CP1GP (Default First Program Grouping ... 212
• 7.2.6 ... HRECM00_CP2GP (Default Second Program Grouping ... 213