Salary Structure Generation (SAP Library - Compensation Management (PA-CM))

Salary Structure Generation

Use

The salary structure generation tools allow you to simulate and generate salary structures based on compensation-related data stored at the job level.

Integration

Once generated, the system stores the salary structures as pay grades and pay grade levels in the relevant table. You can then use the Planned Compensation infotype (1005) to assign these grades and levels to the jobs in your organization.

Features

You can display the salary structures using SAP Business Graphics.

Prerequisites

If you want to use the results of salary surveys and job evaluation systems as the basis for generating your salary structures, you must create a Job Evaluation Results Infotype (1050) record and a Survey Results Infotype (1051) record for each of your jobs.

Activities

You must decide:

How many pay grades you want in your salary structure
What percentage of the market reference salary you want to pay
What the distance between the grades should be
How many pay grade levels you want per pay grade
What the distance between the pay grade levels should be
How wide the levels should be

The system then calculates the salary ranges for all the pay grades and pay grade levels in accordance with the data that you entered, and generates the corresponding salary structure.

See also:

Generating Salary Structures

Salary Structure Maintenance

Display Salary Structure