SuccessFactors Sam talks about Variable Pay and Compensation Management

SamPayrollQuestion_300At the client site, SuccessFactors Sam often gets asked about the differences between Compensation Planning in SAP HCM and Variable Pay in SuccessFactors.

SuccessFactors Sam says, “Compensation Planning facilitates pay-for-performance initiatives by empowering Managers with relevant information to help make compensation planning decisions that include salary, bonus, and/or stock.”

Example – Salary planning could be in terms of merit or promotion lump sum. Bonus is based on company, personal, and or team goals and the stock program could be based on job levels.


“Variable Pay facilitates the administration of complex variable pay programs that include quantitative business performance and employee performance measures.”

Example – Variable Pay comparatively calculates bonus based on individual performance, and/or company and team performance.


SuccessFactors Sam notes that the major differences between Variable Pay to Compensation Management are that Variable Pay:


About SuccessFactors Sam

SuccessFactors Sam is clever and quirky and works here at AspireHR. He’s super stoked that we implement SuccessFactors and will highlight an aspect of SuccessFactors that he thinks is useful.
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