Wednesday, September 24, 2014

SuccessFactors Variable Pay Integration With SAP ERP HCM

The SuccessFactors Variable Pay integration with SAP ERP HCM is planned for release in November 2014. I had a look at the current design and updated the Talent Hybrid deployment model white paper with my visual interpretation of the proposed design. Please note that sometimes we make minor changes to the design and release dates. Consider this an informal update. Don't make any critical purchasing or project decisions based on this post. This is the update I made to the white paper.

SuccessFactors Variable Pay Integration with SAP ERP HCM

Variable pay is a significant element of the direct compensation package of a growing number of organizations. The trend is towards more organizations using variable pay and for these organizations to expand eligibility and to increase the prominence of variable pay in the total direct compensation package.

The Society for Human Resource Management (SHRM) defines variable pay  as “direct compensation that does not become a permanent part of base pay and which may vary in amount from period to period.” Other names for variable pay include: incentive compensation, incentives, bonuses, commissions, cash awards and lump sums.

Why “SuccessFactors Variable Pay Integration with SAP ERP HCM”?
The criteria and standard for variable pay are defined in the Core HR system and the pay is calculated in the compensation system. So, a near real time integration between the Core HR system and compensation system is essential to ensure timely and accurate execution of the variable pay strategy of an organization.

Integration Data Flow from SAP ERP HCM to SuccessFactors
The criteria and standard for variable pay are defined in the SAP ERP HCM system and send to SuccessFactors Variable Pay module.

Integration Data Flow from SuccessFactors to SAP ERP HCM
The variable pay amount, calculated in SuccessFactors is sent to SAP ERP HCM for payroll purposes.

SuccessFactors Variable Pay Integration with SAP ERP HCM

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