A Guide to Configuring the SAP SuccessFactors Compensation Solution with Employee Central Integration

  • by Malle Alam, Certified SAP SuccessFactors Consultant
  • February 22, 2017
Learn the step-by-step process for integrating SAP SuccessFactors Employee Central and the SAP SuccessFactors Compensation solution. Learn an in-depth configuration solution.
Learning Objectives

By reading this article, you will learn:

  • The various steps involved in the integration of SAP SuccessFactors Employee Central and the SAP SuccessFactors Compensation module
  • The scope and activities involved in an integration of SAP SuccessFactors Employee Central and SAP SuccessFactors Compensation
  • Describe the role of the SAP SuccessFactors Employee Central consultant in a project to integrate Employee Central and SAP SuccessFactors Compensation
  • How to efficiently configure the SAP SuccessFactors Compensation solution in an SAP SuccessFactors Employee Central-integrated system
Key Concept

SAP SuccessFactors Employee Central is a cloud-based application that stores and processes employee information (job, time, employment, and job relationships) throughout the employee’s life cycle in an organization, from hire to termination. This is the HR system of record. The SAP SuccessFactors Compensation solution, also a cloud-based application, enables managers and business leaders to align compensation to the business goals. This helps managers to set up compensation planning programs to engage, reward, and motivate employees.

Enabling integration with SAP SuccessFactors Employee Central and the SAP SuccessFactors Compensation solution streamlines an organization’s compensation process by minimizing manual administration tasks. The integration also provides compensation planners with more time to make informed pay-for-performance decisions on a day-to-day basis.

This article provides a deep dive into the integration of SAP SuccessFactors Employee Central and the SAP SuccessFactors Compensation solution. Currently, a lot of companies are already live with SAP SuccessFactors Compensation or SAP SuccessFactors Employee Central. I have worked with some companies that implemented the SAP SuccessFactors Compensation solution and then decided to go live with SAP SuccessFactors Employee Central more recently. This requires revisiting the implemented compensation solution to ensure it fits the SAP SuccessFactors Employee Central integration model as-is or if it requires modification.

For example:

  • Any changes implemented in Employee Central, such as salary ranges or the addition of new countries, must be re-considered for re-configuration for the SAP SuccessFactors Compensation solution.
  • When the integration between the SAP SuccessFactors Compensation solution and SAP SuccessFactors Employee Central is turned on, you must decide if the integration is to be a full or partial (hybrid) integration. If it is a full integration, then you must choose the data source for the employee data as SAP SuccessFactors Employee Central. If it is a partial (hybrid) integration, then the data sources for employee data are both SAP SuccessFactors Employee Central and a user data file (UDF).
  • Make sure that the SAP SuccessFactors Employee Central implementation project team considers the compensation module requirements, such as recurring and non-recurring pay components.

If the SAP SuccessFactors Employee Central integration is turned on after the SAP SuccessFactors Compensation solution is already implemented, I would consider this to be a re-implementation of SAP SuccessFactors Compensation and would make the stakeholders aware of the actual time and effort that this seemingly simple integration requires. Some basic steps that must be taken that add to the timeline, including:

  • Validating every field used in SAP SuccessFactors Compensation
  • Reviewing the eligibility rules setup. Determine if the eligibility rules will read from business objects (which are in SAP SuccessFactors Employee Central) or if there will be a non-Employee Central rule that is created manually. (I have had situations in which companies needed rules from both SAP SuccessFactors Employee Central and non-Employee Central systems.)
  • Spending time at the outset to consider the limitations of the integration switch. Things that worked standalone may fail with integration. For example, formulas must be re-calculated.
  • Factoring in adequate testing time and resources at the start of the project

Standard Employee Central and Compensation Integration Steps (as of Release Q3 2016)

The SAP SuccessFactors Employee Central system holds Employee Profile information and talent information. For the SAP SuccessFactors Compensation solution to access this information and leverage the SAP SuccessFactors Employee Central data, certain integration steps must be performed, as follows.

Malle Alam

Malle Alam is a certified SAP SuccessFactors consultant, certified in Compensation, Variable Pay, Succession Management, Performance and Goals Management, and SAP HR v4.7). She has over 16 years of experience working on SAP ERP HCM/SuccessFactors implementations. Malle has a strong passion for technology and the HCM domain.

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