SAP HR Unit 9 Enterprise Compensation Management (ECM)

Integration of ECM with different SAP components

 

The mySAP HR Enterprise Compensation Management (ECM) module supports companies in defining, streamlining, and putting into practice a strategic performance-based compensation program throughout the enterprise. The system offers the following main components to a complete compensation management solution:

Compensation Administration

Perform compensation reviews including fixed pay, variable pay, and LTIs. Apply eligibility rules and guidelines based on different criteria such as performance ratings. Implement approval cycles if required feedback, and compensation administration.

Long-Term Incentives

Administer LTI processes such as granting, vesting, life events, and taxation.

Budgeting

Create and maintain monetary and non-monetary budgets for the compensation planning and LTI granting process.

Job Pricing

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

Compensation Administration

1.      Compensation programs, plans and reviews

-          Unlimited number of plans supporting fixed, variable pay and stock options

-          Complex business rules, time dependencies supported

2.      Eligibility

-          Defined at compensation program and plan level

-          Multiple employee, organizational and performance review attributes

3.      Guidelines and proration

-          Proration rules for compensation plans proportional to employee’s eligibility

-          Multi-dimensional matrix, e.g. service, performance, compa-ratio

4.      Flexible data maintenance

-          Exception handling supported

-          Salary changes tracked on payroll records (reason code on IT0008)

Compensation Administration II

·         Compensation planning tool for managers via Manager Self Service (MSS)

-          Configurable frontend for planning and execution of compensation changes

-          Employee compensation profile including job salary elements

-          Historical reference through notes functionality

-          Salaried and hourly-paid employees

-          Standard approval scenario

·         Total compensation statement

-          ESS enabled

·         Compensation review statement

-          Communication on compensation changes

Long-Term Incentives

·         LTI Administration

-          Granting process included in MSS

-          Vesting rules and exercise windows

-          Life event processing, stock splits, cancellations and forfeitures

·         Approval process

-          Standard approval scenario in MSS

·         Taxation in payroll

-          Payroll function delivered to support taxation of exercised option