Salary Structure Adjustment 

Purpose

In this workset, you can compare your internal salary structure to the market salary structure, based on a market composite result that you have created.

You can also create a plan structure with changes to adapt to the market.

Prerequisites

You must have:

·        Created a composite result

·        Maintained the Planned Compensation infotype for the internal jobs in your structure.

Process

There are three tab sections within this workset:

• Current Salary Structure: The system displays the current salary structure, for review purposes.
• Market Data: Select the market data you wish to compare to the internal salary structure. To make the comparison, select a composite result you created in the previous workset (along with other variables — currency, percentile, etc.).
• Planned Salary Structure: In this tab you can either select an existing plan structure from the corresponding dropdown box or you can get the result created in the Market Data tab by selecting Create from Market Data. You can overwrite the values of this plan structure. You can either change the values directly or change the Difference % columns and select Recalculate.

Result

Once you have saved this updated salary structure, it has the status “Planned”. While all other worksets within the Job Pricing component run in your productive system, changes to the salary structures are generally dependent upon upper management/board approval. For this reason, the follow-up processes for this workset must be run in a customizing system. Once the approval has been granted for this updated salary structure, you must run the report Update of Pay Grade Amounts from Market Data to activate the new structure. To access this report, go to your SAP R/3 IMG and select the following path: Enterprise Compensation Management ® Job Pricing ® Pay Grades and Levels ® Update Pay Grade Amounts from Market Data.

The report selects planned values from the productive system and transfers them to the salary structure of the customizing system and creates a transport. After releasing the transport, the values are updated in the productive system.

You can review the salary structure you have created in a graphic format by selecting Show Graphic.