sap erp hcm enterprise compensation management

SAP ERP HCM Enterprise Compensation ManagementOverview: What‘s New In Enterprise Compensation Management

Ramp-Up Knowledge Transfer

SAP enhancement package 5 for SAP ERP 6.0

© 2010 SAP AG. All rights reserved. /

Agenda

1. Overview

2. What’s New In Enterprise Compensation Management (SAP enhancement package5 for SAP ERP 6.0)

Process Types and Process SupportBudgetingCompensation PlanningPlanning OverviewApproval ServicesPower User ModeCompensation ProfileCompensation StatementsGlobal EmploymentNotificationsMessage Mapper

3. Wrap-Up


SAP ERP HCMOne integrated platform for the Best People & Talent

Performance, Compensationand Succession

Management ClassroomTraining andE-Learning

Recruiting

Planning andAnalytics

HCM ServiceDelivery

Talent Management

Scheduling andDeployment

Global HRand PayrollAdministration

Employee DataOrganizational DataCompetency Data

One integrated, organic platformWide breadth of functionality across the whole HCM spectrumUnmatched global capabilities

Key Features


Enterprise Compensation Management

Tie compensation toperformanceImplement innovativereward strategies, suchas performance- andcompetency-based pay,variable pay plans, andlong-term incentivesreward programsAnalyze and comparecompensation packagesusing internal and externalsalary data to ensurecompetitiveness in themarketplace

SAP ERPHumanCapitalManagement


Enterprise Compensation ManagementAvailable Components

The SAP ERP HCM Enterprise Compensation Management module offers thefollowing main components:

Compensation Administration - Perform compensation reviews including fixed pay,variable pay, and LTIs. Apply eligibility rules and guidelines based on different criteriasuch as performance ratings. Implement approval cycles if required.

Long-Term Incentives - Administer LTI processes such as granting, vesting, life events,and taxation.

Budgeting - Create and maintain monetary and non-monetary budgets for thecompensation planning and LTI granting process.

Job Pricing - Export employee salary data for participation in salary surveys. Importsalary survey data and create market composite results. Age and weight market data,compare internal and external pay and adjust company pay structure if required.


Agenda

1. Overview

2. What’s New In Enterprise Compensation Management (SAP enhancementpackage 5 for SAP ERP 6.0)


3. Wrap-Up


Mandatory

SAP Enhancement Packages

PreambleSAP enhancement packages are shipped as a delta shipment to SAP ERP 6.0

Selective InstallationEach SAP enhancement package containsnew versions of existing software componentsYou only update software components, whichare related to the functionality you want to use.After installation:

No UI or process change until a Business Function is activatedHowever SAP enhancement packages require defined ERP Support Package Stack

Selective ActivationNew functionality must be explicitly switched onto become active in the system.If activated:

Changes are predictable, only well described changes in the activated areas.Testing is simplified with templates, provided for every Business FunctionMandatory

Optional

SupportPackages

EnhancementPackages

Selective Update - Example


Enterprise Compensation ManagementQuick Overview - SAP enhancement package 5 for SAP ERP 6.0

Process Types and Process SupportBudgetingPower User ModeMessage Mapper

Enhancements for compensation specialist

Enhancements for (higher-level) managersCompensation PlanningPlanning OverviewCompensation ProfileCompensation StatementsGlobal EmploymentNotifications


Enterprise Compensation ManagementDetailed Overview - SAP enhancement package 5 for SAP ERP 6.0

New Features Description Target Users for this BusinessFunction

Compensation Planning andPlanning Overview UserInterfaces

Enhanced WD ABAP user interfaces support the manager with the compensation planning processand higher level managers with the review and approval process.Features include improved budget display, embedded analytics, flexible setup and definition ofcustomer tabs in the planning table, dependent plan support, Microsoft Excel download capability,single employee planning, power user mode, and more.

Compensation Planning andApproving ManagersHigher-Level ManagersCompensation Administrators

Compensation Profile The enhanced compensation profile provides key data and analytics about an employee'scompensation, history, critical organization, and talent data.Managers are able to leverage the profile to gain insight into previous compensation adjustments,organizational movement, and overall trends.There is also the ability to compare multiple short profiles of employees side by side.

Compensation Planning andApproving Managers

Additional Enhancements Enhancements to the budgeting process support bottom-up (employee level) budgeting.Additional functionality enables ability to maintain and change the budget and address organizationalchanges (i.e. employee moves) during the planning process.Database enhancements increase performance of the application for end users as well as enhanceprocess support.Global employment support identifies the source of the data for compensation processing (forexample, home, or host country).

Compensation Planning andApproving ManagersCompensation Administrators

BenefitsIncreased functionality and ease of use for planning and approving managers during the compensation process. Enhanced data and analytics available tosupport key decisions and serve as critical reference information throughout the year. Compensation administrators and HR business partners benefit fromadditional configuration possibilities as well as power user mode, enabling them to better align with internal compensation programs and effectively assistmanagers during the planning processes.

Enhanced Enterprise Compensation Management user interface and functional enhancementsto support managers and HR in their compensation processes

Business Function: HCM_ECM_CI_2


Enterprise Compensation ManagementOverview Process Steps

Approving Manager

Compensation Administrator Planning Manager

New or updated functionality in SAP enhancement package 5 for SAP ERP 6.0

Budget Process& Calculation

Definition

BudgetStructureCreation

BudgetCreation,

Process ChangeSupport

CompensationPlanning

CompensationApproval

Activation ofCompensation

Records

Transfer of Datato Payroll

Review ofCompensation

Profile &Statements

...

...

Planning ManagerCompensation Administrator

Compensation Administrator Compensation Administrator


Agenda

1. Overview



3. Wrap-Up


Process Types and Process Support

Customer requirements:

Availability of different process types for compensation reviews

Process efficiency


Process Types and Process SupportOverview

Upon activating the functionality incustomizing, the following processes areavailable:

Organizational unit-based process:– Multilevel approval*– One-level approval– No approvalEmployee-based process– Individual-level approval– No approval

Configuration per Compensation Review

*Customizing standard delivery


Available Process TypesCustomizing


Process Support ReportReport PECM_PROCESS_SUPPORT


Organizational Unit-Based ProcessExample: MSS Compensation Planning User Interface

2010 Comp Review isan organizational

unit-based processand thus, no single

employee selectoptions in table


Employee-Based ProcessExample: MSS Compensation Planning User Interface

Discretionary Reviewis an employee-

based process andthus, single

employee can beselected in tableand processed in

compensationplanning


Agenda

1. Overview



3. Wrap-Up


Budgeting


Budget on employee level

Display of employee budget in compensation planning

Transfer of budget along with employee’s transfer

TransparencyProcess efficiency


BudgetingOverview

Upon activating the functionality incustomizing, the following two approaches tocalculate the budgets are available:

Bottom-up approach– Budgets are determined and saved at

employee level– Employee level budget gets added up to obtain

the organizational unit budget– Calculation methods for employee budget:

– Import from Personnel Cost Planning– Guidelines– Customer exit

Top-down approach*– Budgets are determined at organizational unit

level

The user can decide per budget type and budgetperiod which approach to take.

*Customizing standard delivery if noentry is made in Customizing.


BudgetingCustomizing

New functionality in SAP enhancement package 5 for SAP ERP 6.0


Process Support ReportReport PECM_PROCESS_SUPPORT


BudgetingMonitor & Maintain Employee Budgets

Maintain & lockemployee budget


Agenda

1. Overview



3. Wrap-Up


Compensation Planning


More intuitive and enhanced functionality to support managersduring compensation planning decisions

Enhanced layout in Web Dynpro ABAPAdditional critical compensation data and analytics


Compensation PlanningOverview

Upon activating the functionality incustomizing, the following new features areavailable:

Improved performanceEnhanced employee selectionDisplay of ineligible employeesShortened & removable roadmapImproved budget displayEmbedded analyticsCustomer-specific tabsPrint & Excel downloadCompensation profileSingle-employee planningMessages on employee-level via check columnHandling of zero recordsEditable customer columnsDependent plans


Compensation Planning: Select EmployeesExample: MSS Compensation Planning User Interface


Compensation Planning: Plan Compensation DataExample: MSS Compensation Planning User Interface


Compensation Planning: Embedded AnalyticsExample: MSS Compensation Planning User Interface

In each chart, valuescan be directlychanged by clickingon an employee‘sbar, line etc.; valuesare directly updatedin chart and planningtable.


Compensation Planning: Single-Employee PlanningExample: MSS Compensation Planning User Interface

Display of…

• current planning

• historical values


Compensation PlanningCustomizing



Agenda

1. Overview



3. Wrap-Up


Planning Overview


Intuitive capabilities for higher level manager to identifyorganizational status and conduct follow up actions

Traffic lights enable quick identification of status


Planning OverviewOverview


Traffic Light status icons with mouse overcapabilityEmployee count columnCompare functionalityPlan functionality with direct access to new MSScompensation planning user interfaceApproval/rejection for all process types


Planning Overview: Status & Employee CountExample: MSS Planning Overview User Interface

• Traffic light status icons withmouse over capability

• Employee count column


Planning Overview: CompareExample: MSS Planning Overview User Interface


Planning Overview: PlanExample: MSS Planning Overview User Interface


Planning OverviewCustomizing



Agenda

1. Overview



3. Wrap-Up


Approval Services


Availability of different process types for compensation reviews

Different kind of approval processes need to be supported

Process efficiency


Approval ServicesOverview

Upon activating the approval functionality, thefollowing approval services are available:

MSS Compensation Approval– This user interface is used for employee-based

process only.MSS Planning Overview– Can be used for approval of both employee-

based and organizational unit-basedprocesses.

– In case Planning Overview user interface isused for employee-based process, then theMSS Compensation Approval user interface iscalled once the user clicks on thecorresponding Approve/Reject button.

– Please keep in mind that this user interface isnot just used for approval processes; it is muchmore (see RKT material for planning overview).


Approval ServicesCompensation Approval: Employee-Based Process

Only one selection option isavailable (Employees forApproval).

Select employees since this isan employee-based processcompensation review.


Approval ServicesPlanning Overview: Employee-Based Process (1/2)

If there is an employee-based process, then the user can select a row/organizational unitand then click on Approve/Reject button. Once this is done, a new window opens (see nextslide).


Approval ServicesPlanning Overview: Employee-Based Process (2/2)

Coming from the Planning Overview, the Compensation Approval service is opened. This isexactly the same Compensation Approval service as it will be shown before (see slide

Compensation Approval: Employee-Based Process ).


Agenda

1. Overview



3. Wrap-Up


Power User Mode


HR tool needed to support end-users during compensationplanning cycle

HR tool shall be similar to end-user tool

Time and cost savingsTransparency


Power User ModeOverview

Upon activating the power user modefunctionality (via adding in URL-parameter&poweruser_mode=X ), access is available for:

MSS Compensation PlanningMSS Planning Overview


Power User ModeExample: MSS Compensation Planning User Interface

Manager name can be selected(example: Compensation

Planning of Timmy Tabascocan be seen)


Power User ModeExample: MSS Planning Overview User Interface

Manager name can be selected(example: Planning Overview of

Mark Taylor can be seen)


Agenda

1. Overview



3. Wrap-Up


Compensation Profile


More intuitive and comprehensive profile to support managersduring compensation planning decisions

Access to profile outside compensation planning cycles

Enhanced layout in Web Dynpro ABAPAdditional critical compensation data and analyticsYear round access to profile


Compensation ProfileOverview

Upon activating the compensation profilefunctionality in customizing, the profile can beaccessed via:

MSS Compensation PlanningMSS Compensation Information


Compensation ProfileExample: MSS Compensation Profile User Interface


Compensation ProfileExample: MSS Compensation Planning User Interface


Compensation ProfileExample: MSS Compensation Information User Interface


Compensation ProfileCustomizing



Agenda

1. Overview



3. Wrap-Up


Compensation Statements


Additional configuration possibilities for Total CompensationStatement and Compensation Review Statement

Consolidated access for critical compensation information

Enhanced configuration possibilitiesWeb Dynpro ABAP access to forms and other

compensation information


Compensation StatementsOverview


Possibility to create country-dependent forms(Total Compensation Statement & CompensationReview Statement)Option to decide which subcategory to show tomanager and/or employee (Total CompensationStatement)


Compensation StatementsExample: MSS Compensation Information User Interface


Compensation StatementsExample: Total Compensation Statement


Compensation StatementsCustomizing



Agenda

1. Overview



3. Wrap-Up


Global Employment


Being able to plan compensation for employees of a companyor company group with multiple personnel assignments indifferent countries

Possibility to choose where to plan the employee andbased on which criteria (Home or Host)

Process efficiencyTransparency


Global EmploymentOverview

Upon activating the global employmentfunctionality in customizing, the following ispossible:

Customer can decide where employee isplanned; either in host by host manager or homeby home manager.Customer can decide on which datacompensation planning is done – i.e.compensation process aspects can be used tooverwrite settings (e.g. host manager planscompensation for his/her global employee basedon home guidelines).– Available compensation process aspects:

– Eligibility– Calculation base– Guideline (general)– Guideline (dimension)– Effective date– Activation


In the example Nicole Westenberger is a Global Employee transferred from Germany to US;host manager is responsible for compensation planning. Home manager is not able to seeNicole in compensation planning screen.

Global EmploymentExample: MSS Compensation Planning


If host manager opens thecompensation profile of aglobal employee in his/herteam, then the employee’shome manager name isdisplayed.

Global EmploymentExample: MSS Compensation Profile – Short Profile (Host)


Global EmploymentCustomizing



Agenda

1. Overview



3. Wrap-Up


Notifications


Notifications as part of the compensation planning process tosupport approval/rejection of planned compensation

Notifications in SAP Business Workplace or mail inbox

Process simplificationTime savings via easier process monitoring


NotificationsOverview

Upon activating the functionality incustomizing, the following actions willgenerate notifications:

The report Notify Managers has been executedfor a specific compensation review (managersare notified to begin the planning process).A manager completes the planning (allemployees are submitted and all subordinateplanning units are approved). His/her one-level-up manager is notified that the planning is readyfor approval.A higher-level manager approves the planning ofone of his/her subordinate managers. Thesubordinate manager is notified.A higher-level manager rejects the planning ofone of his/her subordinate managers. Thesubordinate manager is notified.


NotificationsTechnical Details

Available notifications (object type: CL_HRECM00_WORKFLOW_EVENT):Organizational unit-based process:

Initialize Planning / Notify Managers (event: CREATED, receiver type: WS04000025)

Notification for “Submit Planning” (event: SUBMITTED, receiver type: WS04000022)

Notification for “Reject Planning” (event: REJECTED, receiver type: WS04000024)

Notification for “Approve Planning” (event: APPROVED, receiver type: WS04000023)

Employee-based process:Initialize Planning / Notify Managers (event: CREATED, receiver type: WS04000025)

Notification for "Submit Planning" of a single employee (event: SUBMITTED_SINGLE_EMPLOYEE,receiver type: WS77900114)

Notification for "Reject Planning" of a single employee (event: REJECTED_SINGLE_EMPLOYEE,receiver type: WS77900115)

Notification for "Approve Planning" of a single employee (event: APPROVED_SINGLE_EMPLOYEE,receiver type: WS77900111)

Notification is sent for each employee!

Notifications can be sent to manager’s ...Business Workplace/UWLMail inbox (e-mail with generated link to open the application)



NotificationsExample: Mail-Inbox – Planning Submitted for Approval

Donald King receives an e-mail notification in his mailinbox that the compensation planning for Carol

Green has been submitted for approval.

Via click on Execute Work Item, the MSSCompensation Planning screen (roadmap step 2) gets

displayed.


NotificationsCustomizing



Agenda

1. Overview



3. Wrap-Up


Message Mapper


Intuitive display of messages for end-users

Process simplification


Message MapperOverview


Possibility to assign the system message that thesystem is currently showing the user to othermessages.You can use alternative customer-orientedmessage for all message classes and themessages they contain for the user interfaces inthe Web Dynpro application for:– Compensation Planning– Employee Compensation Profile– Compensation Information


Message MapperCustomizing



Agenda

1. Overview

2. What’s New In Enterprise Compensation Management (SAP enhancement package5 for SAP ERP 6.0)


3. Wrap-Up


Summary7 Key Points to Take Away

Customers can choose between five different process typesSupport of bottom-up (employee level) budgeting enables budget transfer along withemployee transferEnhanced WD ABAP user interfaces support the manager with the compensationplanning process and higher level managers with the review and approval processEnhanced data and analytics available to support key decisions and serve as criticalreference information throughout the yearThe enhanced compensation profile provides key data and analytics about an employee'scompensation, history, critical organization, and talent data.Compensation administrators and HR business partners benefit from additionalconfiguration possibilities as well as power user accessGlobal employment support identifies the source of the data for compensation processing(for example, home, or host country)


Technical PrerequisitesSAP enhancement package 5 for SAP ERP 6.0

SAP ECC 6.0SAP enhancement package 5 for SAP ERP 6.0Activation of business functions:

HCM_ECM_CI_1 (new with Enhancement Package 4, prerequisite for HCM_ECM_CI_2)

HCM_ECM_CI_2 (new with Enhancement Package 5)

Related switches:HRECM_SFWS_UI_ENH_01 (for HCM_ECM_CI_1)

HRECM_SFWS_UI_ENH_02 (for HCM_ECM_CI_2)

SAP NetWeaver 7.02 SP01SAP NetWeaver 04s Portal 7.0Business Package for Manager Self-Service 1.51


Further Information

Resources on Enterprise Compensation Management:

http://service.sap.com/erp SAP ERP Human Capital Management Talent ManagementCompensation Management

Information regarding SAP Enhancement Packages:

http://service.sap.com/erp-ehp

Ramp Up Knowledge Transfer Information:

http://service.sap.com/rkt

http://service.sap.com/rkt-erp

Online Help: http://help.sap.com

Documentation SAP ERP SAP ERP Enhancement Packages ERP Central ComponentEnhancement Package 5

– Open document in your language– Choose SAP ERP Central Component Human Resources Talent Management Enterprise

Compensation Management

http://service.sap.com/erp

http://service.sap.com/erp-ehp

http://service.sap.com/rkt

http://service.sap.com/rkt-erp

http://help.sap.com/


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sap erp hcm enterprise compensation management

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