Define Compensation Areas
In this step, you define your compensation areas.
Compensation areas group employees for compensation administration purposes.
The attributes used for grouping employees can be geographical, for example, country and region, or they can be organizational, for example, department and subsidiary.
Example
Compensation area Country grouping
01 Northeast region 10 USA
02 Central region 10 USA
03 Subsid. 1 99 International
04 Subsid. 2 08 Great Britain
Compensation components and adjustments have wage types, therefore a compensation area can only be assigned to one country grouping.
Activities
1. Determine the different compensation areas that you need within your organization.
2. Choose New entries.
3. Enter a two-character identifier for each compensation area.
4. Enter a description and a country grouping for each of your areas.
5. Save your entries.
