Remunerating Multi-Rated Employees

  • by Deepankar Maitra, Senior Manager, Accenture
  • May 15, 2003
The problem of employees who are remunerated at multiple rates is not new. To deal with it, the author proposes a model using R/3's standard HR Personnel Administration (PA), Cross Application Time Sheet system (CATS), and Organizational Management (OM).

You are part of the HR/payroll department of a large manufacturing/service organization. You have people in the company who must be paid at a different rate because they have temporarily filled a position that attracts higher pay. Or, in another situation, an employee has been “reorganized” to work in another unit because of capacity and demand issues. This new unit has a lesser rate of pay, and the union representative just reminded you that, according to the union-negotiated contract, he is entitled to the higher pay for at least four months.

You have R/3 HR and you can pay at a different rate by using a different pay scale group and level for these cases. However, if you have to intervene and modify time cards, you won’t get other things done, potentially risking the timeliness of pay processing. You can ask the clerical support department to take care of this extra workload, but how would it know who is qualified for what rate? How would you prevent errors in data entry that may result in incorrect pay?

The problem of employees who are remunerated at multiple rates is not new (HR departments refer to such employees as "multi-rated"). To deal with it, I propose a model using R/3’s standard HR Personnel Administration (PA), Cross Application Time Sheet system (CATS), and Organizational Management (OM). The model I developed has resulted in significant improved accuracy when entering rates, reduced time for validating rates, and the provision of a single-point repository for variable rate information for an employee.

Deepankar Maitra

Deepankar Maitra has more than 25 years of consulting experience specializing in SAP-based solutions for human resources, supply chain, and reporting in multi-national companies around the world. He has successfully directed large implementation projects as solution architect, delivery manager, global lead, and country lead. His expertise lies in pragmatic harmonization of data and synthesis of processes using tools that improve process execution through quantum leaps in productivity.

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