SAP ERP HCM Enterprise Compensation ManagementOverview: Whats New In Enterprise Compensation Management
Ramp-Up Knowledge Transfer
SAP enhancement package 5 for SAP ERP 6.0
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancement package5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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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 platform? Wide breadth of functionality across the whole HCM spectrum? Unmatched global capabilities
Key Features
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Enterprise Compensation Management
? Tie compensation toperformance
? Implement innovativereward strategies, suchas performance- andcompetency-based pay,variable pay plans, andlong-term incentivesreward programs
? Analyze and comparecompensation packagesusing internal and externalsalary data to ensurecompetitiveness in themarketplace
SAP ERPHumanCapitalManagement
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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.
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancementpackage 5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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Mandatory
SAP Enhancement Packages
PreambleSAP enhancement packages are shipped as a delta shipment to SAP ERP 6.0
Selective Installation? Each SAP enhancement package contains
new versions of existing software components? You only update software components, which
are related to the functionality you want to use.? After installation:
? No UI or process change until a Business Function is activated? However SAP enhancement packages require defined ERP Support Package Stack
Selective Activation? New functionality must be explicitly switched on
to 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
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Enterprise Compensation ManagementQuick Overview - SAP enhancement package 5 for SAP ERP 6.0
? Process Types and Process Support? Budgeting? Power User Mode? Message Mapper
Enhancements for compensation specialist
Enhancements for (higher-level) managers? Compensation Planning? Planning Overview? Compensation Profile? Compensation Statements? Global Employment? Notifications
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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 Managers
? Higher-Level Managers? Compensation 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 organizational
changes (i.e. employee moves) during the planning process.? Database enhancements increase performance of the application for end users as well as enhance
process support.? Global employment support identifies the source of the data for compensation processing (for
example, home, or host country).
? Compensation Planning andApproving Managers
? Compensation 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
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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
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancementpackage 5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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Process Types and Process Support
Customer requirements:
? Availability of different process types for compensation reviews
? Process efficiency
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Process Types and Process SupportOverview
? Upon activating the functionality incustomizing, the following processes areavailable:
? Organizational unit-based process: Multilevel approval* One-level approval No approval
? Employee-based process Individual-level approval No approval
? Configuration per Compensation Review
*Customizing standard delivery
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Available Process TypesCustomizing
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Process Support ReportReport PECM_PROCESS_SUPPORT
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Organizational Unit-Based ProcessExample: MSS Compensation Planning User Interface
2010 Comp Review isan organizational
unit-based processand thus, no single
employee selectoptions in table
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Employee-Based ProcessExample: MSS Compensation Planning User Interface
Discretionary Reviewis an employee-
based process andthus, single
employee can beselected in tableand processed in
compensationplanning
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancementpackage 5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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Budgeting
Customer requirements:
? Budget on employee level
? Display of employee budget in compensation planning
? Transfer of budget along with employees transfer
? Transparency? Process efficiency
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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.
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BudgetingCustomizing
New functionality in SAP enhancement package 5 for SAP ERP 6.0
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Process Support ReportReport PECM_PROCESS_SUPPORT
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BudgetingMonitor & Maintain Employee Budgets
Maintain & lockemployee budget
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancementpackage 5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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Compensation Planning
Customer requirements:
? More intuitive and enhanced functionality to support managersduring compensation planning decisions
? Enhanced layout in Web Dynpro ABAP? Additional critical compensation data and analytics
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Compensation PlanningOverview
? Upon activating the functionality incustomizing, the following new features areavailable:
? Improved performance? Enhanced employee selection? Display of ineligible employees? Shortened & removable roadmap? Improved budget display? Embedded analytics? Customer-specific tabs? Print & Excel download? Compensation profile? Single-employee planning? Messages on employee-level via check column? Handling of zero records? Editable customer columns? Dependent plans
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Compensation Planning: Select EmployeesExample: MSS Compensation Planning User Interface
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Compensation Planning: Plan Compensation DataExample: MSS Compensation Planning User Interface
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Compensation Planning: Embedded AnalyticsExample: MSS Compensation Planning User Interface
In each chart, valuescan be directlychanged by clickingon an employeesbar, line etc.; valuesare directly updatedin chart and planningtable.
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Compensation Planning: Single-Employee PlanningExample: MSS Compensation Planning User Interface
Display of
current planning
historical values
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Compensation PlanningCustomizing
New functionality in SAP enhancement package 5 for SAP ERP 6.0
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancementpackage 5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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Planning Overview
Customer requirements:
? Intuitive capabilities for higher level manager to identifyorganizational status and conduct follow up actions
? Traffic lights enable quick identification of status
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Planning OverviewOverview
? Upon activating the functionality incustomizing, the following new features areavailable:
? Traffic Light status icons with mouse overcapability
? Employee count column? Compare functionality? Plan functionality with direct access to new MSS
compensation planning user interface? Approval/rejection for all process types
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Planning Overview: Status & Employee CountExample: MSS Planning Overview User Interface
Traffic light status icons withmouse over capability
Employee count column
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Planning Overview: CompareExample: MSS Planning Overview User Interface
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Planning Overview: PlanExample: MSS Planning Overview User Interface
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Planning OverviewCustomizing
New or updated functionality in SAP enhancement package 5 for SAP ERP 6.0
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancementpackage 5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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Approval Services
Customer requirements:
? Availability of different process types for compensation reviews
? Different kind of approval processes need to be supported
? Process efficiency
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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).
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Approval ServicesCompensation Approval: Employee-Based Process
Only one selection option isavailable (Employees forApproval).
Select employees since this isan employee-based processcompensation review.
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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).
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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 slideCompensation Approval: Employee-Based Process ).
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancementpackage 5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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Power User Mode
Customer requirements:
? HR tool needed to support end-users during compensationplanning cycle
? HR tool shall be similar to end-user tool
? Time and cost savings? Transparency
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Power User ModeOverview
? Upon activating the power user modefunctionality (via adding in URL-parameter&poweruser_mode=X ), access is available for:
? MSS Compensation Planning? MSS Planning Overview
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Power User ModeExample: MSS Compensation Planning User Interface
Manager name can be selected(example: Compensation
Planning of Timmy Tabascocan be seen)
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Power User ModeExample: MSS Planning Overview User Interface
Manager name can be selected(example: Planning Overview of
Mark Taylor can be seen)
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancementpackage 5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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Compensation Profile
Customer requirements:
? More intuitive and comprehensive profile to support managersduring compensation planning decisions
? Access to profile outside compensation planning cycles
? Enhanced layout in Web Dynpro ABAP? Additional critical compensation data and analytics? Year round access to profile
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Compensation ProfileOverview
? Upon activating the compensation profilefunctionality in customizing, the profile can beaccessed via:
? MSS Compensation Planning? MSS Compensation Information
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Compensation ProfileExample: MSS Compensation Profile User Interface
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Compensation ProfileExample: MSS Compensation Planning User Interface
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Compensation ProfileExample: MSS Compensation Information User Interface
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Compensation ProfileCustomizing
New functionality in SAP enhancement package 5 for SAP ERP 6.0
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancementpackage 5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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Compensation Statements
Customer requirements:
? Additional configuration possibilities for Total CompensationStatement and Compensation Review Statement
? Consolidated access for critical compensation information
? Enhanced configuration possibilities?Web Dynpro ABAP access to forms and othercompensation information
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Compensation StatementsOverview
? Upon activating the functionality incustomizing, the following new features areavailable:
? Possibility to create country-dependent forms(Total Compensation Statement & CompensationReview Statement)
? Option to decide which subcategory to show tomanager and/or employee (Total CompensationStatement)
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Compensation StatementsExample: MSS Compensation Information User Interface
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Compensation StatementsExample: Total Compensation Statement
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Compensation StatementsCustomizing
New or updated functionality in SAP enhancement package 5 for SAP ERP 6.0
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancementpackage 5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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Global Employment
Customer requirements:
? 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 efficiency? Transparency
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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
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? 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
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If host manager opens thecompensation profile of aglobal employee in his/herteam, then the employeeshome manager name isdisplayed.
Global EmploymentExample: MSS Compensation Profile Short Profile (Host)
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Global EmploymentCustomizing
New functionality in SAP enhancement package 5 for SAP ERP 6.0
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancementpackage 5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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Notifications
Customer requirements:
? Notifications as part of the compensation planning process tosupport approval/rejection of planned compensation
? Notifications in SAP Business Workplace or mail inbox
? Process simplification? Time savings via easier process monitoring
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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.
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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 managers ...? Business Workplace/UWL? Mail inbox (e-mail with generated link to open the application)
? New functionality in SAP enhancement package 5 for SAP ERP 6.0
?
?
?
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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.
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NotificationsCustomizing
New or updated functionality in SAP enhancement package 5 for SAP ERP 6.0
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancementpackage 5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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Message Mapper
Customer requirements:
? Intuitive display of messages for end-users
? Process simplification
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Message MapperOverview
? Upon activating the functionality incustomizing, the following new features areavailable:
? 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
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Message MapperCustomizing
New functionality in SAP enhancement package 5 for SAP ERP 6.0
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Agenda
1. Overview
2. Whats New In Enterprise Compensation Management (SAP enhancement package5 for SAP ERP 6.0)? Process Types and Process Support? Budgeting? Compensation Planning? Planning Overview? Approval Services? Power User Mode? Compensation Profile? Compensation Statements? Global Employment? Notifications? Message Mapper
3. Wrap-Up
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Summary7 Key Points to Take Away
? Customers can choose between five different process types? Support of bottom-up (employee level) budgeting enables budget transfer along with
employee transfer? Enhanced WD ABAP user interfaces support the manager with the compensation
planning process and higher level managers with the review and approval process? Enhanced data and analytics available to support key decisions and serve as critical
reference information throughout the year? The enhanced compensation profile provides key data and analytics about an employee's
compensation, history, critical organization, and talent data.? Compensation administrators and HR business partners benefit from additional
configuration possibilities as well as power user access? Global employment support identifies the source of the data for compensation processing
(for example, home, or host country)
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Technical PrerequisitesSAP enhancement package 5 for SAP ERP 6.0
? SAP ECC 6.0? SAP enhancement package 5 for SAP ERP 6.0? Activation 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 SP01? SAP NetWeaver 04s Portal 7.0? Business Package for Manager Self-Service 1.51
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Further Information
? Resources on Enterprise Compensation Management:
? http://service.sap.com/erp ? SAP ERP Human Capital Management ?Talent Management ?Compensation 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
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