Compensation Administration Process

Purpose

This process describes how to:

  • Award compensation adjustments for one or more organizational units or for a list of employees

  • Submit compensation adjustments for approval

  • Approve adjustments

  • Activate adjustments

Prerequisites

Before you start the compensation administration process, you must have:

  • Completed budgeting for the necessary organizational units (optional)

  • Defined compensation components and adjustment types

  • Defined adjustment reasons for distributing adjustments

  • Set up guidelines and eligibility rules (optional)

  • Created an organizational structure

  • Generated a list of employees using the employee selection function

Process Flow

  1. Select the compensation adjustment reason and decide how you want to select your employees.

  2. Generate a list of employees for the selected compensation period

  3. Apply guidelines or change the values by a percentage or an amount (optional)

  4. Award compensation adjustments to the employees in the list.

  5. When you have processed all the employees selected, save your changes.

  6. You now need to submit your adjustments for approval.

  7. Your adjustments are approved and the status is changed from approved to activated. If your adjustments are rejected, they are returned to you for further processing.

  8. Once your adjustments have the status approved, they can be activated.

Result

Once your adjustments are activated, the system creates new infotype records for your employees as of the compensation adjustment's effective date.

See also:

Adjusting Compensation Using the Adjustments Menu

Activate Adjustments