How to Configure the SAP SuccessFactors Variable Pay Module with SAP SuccessFactors Employee Central Integration

  • by Malle Alam, Senior Consultant
  • February 14, 2017
Learn the step-by-step process for integrating SAP SuccessFactors Employee Central and the SAP SuccessFactors Variable Pay module. Learn an in-depth configuration solution.
Learning Objectives

By reading this article, you will learn:

  • The various steps involved in the integration of Employee Central and the SAP SuccessFactors Variable Pay module
  • The scope and activities involved in an integration of Employee Central and SAP SuccessFactors Variable Pay
  • How to describe the role of the Employee Central and Variable Pay system administrators in a project to integrate Employee Central and SuccessFactors Variable Pay
  • How to efficiently configure the SAP SuccessFactors Variable Pay solution in an 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 Variable Pay solution is also a cloud-based application that enables managers and business leaders to recognize and reward employees’ contributions toward company productivity and profitability. This module processes employee history data to determine and calculate eligibility for variable pay of employees.

In a standalone SAP SuccessFactors Variable Pay module, you spend a lot of time and effort manually downloading and uploading employee data files, validating these files, and manipulating them. There are many benefits to having an Employee Central integration in place, including saving time and reducing errors.

Employee history data files contain job information and compensation information, such as currency code, base salary, annual salary, target bonus percentage, and employee bonus plans. With an Employee Central–Variable Pay integration enabled, all this data can now come directly from the Employee Central employee files into the Variable Pay module. In addition, minimal manual updates are required to be made to employees’ history files as most of the Variable Pay employee information now comes directly from Employee Central.

Eligibility rules, which are built using business rules, determine which employees are eligible for the variable pay program and which employees are eligible for a specific bonus. The key to an effective integration is ensuring that the employee data that is read by the Variable Pay module first exists in Employee Central.

I provide detailed step-by-step directions for setting up the SuccessFactors Variable Pay module and Employee Central integration, from updating Employee Central-specific settings to publishing the variable pay results or final incentive amounts to Employee Central. I also offer some helpful quick tips and workarounds as well as details for how the hybrid model works. The concept of a hybrid template in Employee Central is to support both Employee Central and non-Employee Central users. Data for Employee Central users still comes from the Employee Central system, whereas the data for non-Employee Central users comes from a user data file (UDF).

Employee Central Integration Setup

The first integration step is to go to Admin Center > Compensation > Compensation Home > Plan Setup > Settings > Employee Central Integration Settings, to turn on the integration.

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.

See more by this author


No comments have been submitted on this article. 

Please log in to post a comment.

To learn more about subscription access to premium content, click here.