SAP SuccessFactors Compensation

What is SAP SuccessFactors Compensation?

SAP SuccessFactors Compensation is a cloud-based solution designed to manage employee pay effectively. Compensation deals with a fixed salary paid to employees, typically known as the annual salary review, and simple one-time lump sums. From fixed salaries to one-time bonuses, it empowers HR leaders to simplify the annual salary review process while ensuring fairness and transparency.

Strategic Compensation Programs

The SAP SuccessFactors Compensation module helps you build and manage strategic compensation programs that align with the needs of your employees, your business, and your budget.

Fixed Salary and Long-Term Incentives

Compensation is also used for long-term incentives. This includes stocks, options, and RSUs (Restricted Stock Units). Unlike personal productivity tools or other solutions that simply automate and streamline compensation planning, SAP SuccessFactors Compensation focuses on delivering meaningful rewards experiences that are personalized, relevant, frequent, and timely for your employees across the globe.

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Key Features

Secure Workflows

The system leverages calculation and eligibility engines to ensure accuracy, eliminate errors, and protect sensitive data.

Data-Driven Strategies

Create and communicate a compensation strategy based on objective data, clearly linking performance metrics to pay outcomes.

Self-Service Tools

Save time with self-service capabilities, allowing employees to access bonus statements and pay-related information easily and transparently.

What is SAP SuccessFactors Variable Pay?

Variable Pay deals with variable pay bonus programs, typically known as corporate bonus programs or short-term incentives (STI). By rewarding individual, team, and business goal achievement, you’ll retain top talent and drive organizational performance. Plus, enjoy clearer visibility into individual employee performance when making critical compensation planning decisions.

Why Choose SuccessFactors Compensation?

Retain Top Talent

Reward high-performing employees with strategic, fair compensation that makes them feel valued and motivated to stay. Gain clear insights into employee performance to make informed compensation planning decisions.

Optimize Budget

Optimize your budget by running “what-if” scenarios to instantly see how increasing merit pay to your best employees will impact your budget. The easy-to-use automated system will save compensation managers time and money. With audit compliance data stored automatically, you’ll experience a significantly reduced risk of loss, eliminating this burden for compensation administrators.

See what our customers are saying about SAP SuccessFactors Compensation

Case study: DHI Ensures Fair Compensation Management with SAP SuccessFactors

Learn how DHI transformed its manual compensation processes into a transparent, performance-based system.

Read case study

Frequently Asked Questions

What is the difference between Compensation and Variable Pay in SAP SuccessFactors?

The Compensation Module and Variable Pay Module are components of the SAP SuccessFactors Compensation Management suite:

• The Compensation Module helps manage the salary review process and long-term incentives such as stock awards.

• The Variable Pay Module is designed to manage short-term incentives, such as performance-based bonus programs.

In summary, Compensation manages salaries, while Variable Pay handles bonuses.

What are the benefits of the SAP SuccessFactors Compensation Module?

• Strategic Alignment: Align compensation programs with business objectives to drive performance.

• Employee Engagement: Motivate and retain top talent with fair and performance-based rewards.

• Cost Efficiency: Increase employee retention, reducing recruitment and onboarding costs.

• Simplified Planning: Streamline compensation planning for efficiency and accuracy.

• Informed Decision-Making: Gain data-driven insights to make equitable pay decisions.

• Centralized Management: Manage all aspects of employee compensation in one unified system.

What is an example of compensation management?

An organization can use SAP SuccessFactors Compensation to implement a recognition program allowing employees to easily nominate their peers for rewards anytime and from anywhere. This enhances the visibility and transparency of employee rewards, fostering greater engagement among employees across various work environments.

Read our full FAQ on compensation management here.