How to Configure the SAP SuccessFactors Calibration Module for Setting Fair Compensation

  • by Malle Alam, Senior Consultant
  • December 15, 2017
Follow the steps to integrate the calibration and compensation modules in SAP SuccessFactors. These steps enable you to calibrate ratings and pay across your organization and to view, compare, and adjust all ratings and pay.
Learning Objectives

Reading this article, you’ll learn:

●     The various steps involved in calibration-compensation integration

●     The scope and activities involved in a calibration-compensation integration

●     The role of a compensation functional expert on a calibration-compensation integration project

●     How to efficiently configure a compensation solution in an integrated system

 

Key Concept

Calibration is the process organizations use to compare and potentially adjust the ratings of their team members to ensure that performance levels are standardized across the organization. Calibration can be part of a performance review process, a talent review process, or a compensation review process.

 

The SAP SuccessFactors calibration module allows managers to allocate ratings that are fair and objectively distributed across the organization. It provides one system that gathers performance, compensation, succession, and talent profile data. The module ties employee performance with rewards and uses calibration to help ensure decisions that align performance goal achievement with bonus payouts to instill a true pay-for-performance culture. It also highlights where bias exists. Calibration can be a standalone activity or it can be embedded in talent management cycles. You can select from four different data sources to calibrate ratings and configure sessions with dynamic groups of individuals:

  1. Performance: Performance calibration includes the evaluation of performance, goals, potential, or other customer-defined elements
  2. Compensation: Compensation calibration allows you to calibrate employees' compensation ratios
  3. Employee Profile: Allows access and modification to a subject’s Employee Profile and/or custom ratings (if any) during the session
  4. Talent Flag: Allows access and modification to a subject’s Talent Flag during the session
I show how to integrate the calibration and compensation modules in SAP SuccessFactors to ensure ratings and pay are standardized across your organization.

Malle Alam

Malle Alam is a senior consultant at a Global Professional Services firm in the SAP/SuccessFactors practice. She is a certified SAP SuccessFactors consultant, certified in Compensation, Variable Pay, Succession Management, Performance and Goals Management, and SAP HR v4.7. She has more than 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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