SAP Job Pricing Part 1: Set Up the Foundation for Market Data Analysis

  • by Jeremy Masters, SAP HCM Consultant, Worklogix
  • November 15, 2006
Beginning with SAP R/3 Enterprise 4.7, SAP offers a comprehensive way to compare your salaries with market rates. You can set up vendors and import survey jobs and market data with SAP’s Job Pricing functionality.
Key Concept

SAP’s Job Pricing functionality is available as of SAP Enterprise 4.7 Extension Set 1.1. It is a new module within Enterprise Compensation Management (application area PA-EC). Many companies that have deployed or are in the process of deploying EC are considering using the Job Pricing functionality to market price internal jobs. By using this new module, companies can expect to leverage the latest market analysis functionality from SAP as well as increase the ROI of their systems.

To retain key talent, champion morale, and maintain competitive advantage in a tight job market, paying your employees at or above the market rate is one the most important functions of compensation professionals. With SAP’s Job Pricing functionality, assessing your salary structure is easier. It allows you to create survey providers and upload survey jobs, survey job descriptions, and market data.

Using Job Pricing, users can export detailed salary information to survey providers using standard SAP Query functionality. You can import survey jobs, survey job descriptions, and market data from external vendors into Job Pricing or match SAP internal jobs (object type C) with provider survey jobs. Job Pricing can also weight (i.e., give priority to one survey job over another) and age (i.e., date market data from the survey date to your desired effective date) jobs online. HR professionals can use Job Pricing to create job composites based on a mix of survey jobs from different vendors, and then compare internal pay structures to market data and make subsequent adjustments to pay structures to remain competitive. Finally, Job Pricing can provide pricing data to SAP Business Information Warehouse (BW).

Compensating employees efficiently and fairly is the key to retaining talent. Being competitive with your compensation in the marketplace requires a constant knowledge of what other companies are paying, including base pay, short-term incentives, long-term incentives, and perquisites. In Job Pricing, you can perform market analysis to gauge how your company measures up to the competition. By knowing how others pay, you can structure your pay levels based on your company’s remuneration philosophy. Follow these steps to set up Job Pricing in your system.

Jeremy Masters

Jeremy Masters is an author, speaker, and SAP ERP HCM subject matter expert with more than 12 years of experience. Jeremy is also the co-founder and managing partner of Worklogix, which provides SAP ERP HCM professional services and software solutions to Fortune 1000 companies. Jeremy has been involved in more than 20 projects, many of them global in scope. In addition to ECM, Jeremy has worked with the talent management functionality, including performance management, succession planning, and e-recruiting as well as the employee and manager portals in SAP ERP. For more information on Enterprise Compensation Management, you can reference his book Enterprise Compensation Management with SAP ERP HCM.

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