How to Design an SAP Compensation Administration Plan

  • by Janet McClurg, SAP HCM Platinum Consultant, SAP
  • January 15, 2004
This second article in a series on the Compensation Administration (CA) application explains how to design a compensation plan. It takes you through the conditions and rules you need to create to control who is eligible for what awards, under what conditions the employee is eligible, what attributes of the employee or the job must be present to receive an award, and the factors that influence the amount.

Using the Compensation Administration (CA) application, you can link employees’ performance to their compensation. In the first part of this series, published in the December 2003 issue, I showed you how to budget for a compensation/award plan. With this step completed, you can now go on to design the plan.

When designing monetary reward plans, you create conditions and rules to control who is eligible for what awards, under what conditions the employee is eligible, what attributes of the employee or his job must be present to receive an award, and factors that influence the award amount. These conditions are configurable within the CA application.

Janet McClurg

Janet McClurg is an SAP Platinum consultant specializing in the Human Capital Management application. She has worked for SAP for 12 years, the last eight in the platinum consultant role. Janet’s areas of specialization include Enterprise Compensation Management, Performance Management, Organizational Management, Personnel Administration and Succession/Career Planning.

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