Topic 61: Compensation Management

[welcomewiki]

[welcomewiki]

Define Long-Term Incentive Plans

In this step, you define your long-term incentive plans. To do this, you define a plan and associate a fixed block of shares that are available to be granted to it.

The wage types for long-term incentives are stored on the Awards (0382) infotype.



Activities
1. Choose New entries
2. Enter one of the compensation components categorized as Long-term incentives that you defined in the Define Compensation Components step.
3. Enter a validity period
4. Enter the number of shares that the shareholders have allowed to be distributed
5. Save your entries

[welcomewiki]

Define Compensation Packages

In this step, you define your compensation groups and your compensation packages.

A compensation package is a list of compensation components that can be awarded to employees belonging to a particular compensation group.

Example
The compensation package for the compensation group EXEC (Executive package) includes the compensation components BASE, BONS, PROF and STCK. The compensation package for the compensation group LABOR (Standard labor package) only includes the components BASE and BONS

Note
Compensation packages are used to support total compensation. This functionality is currently not available. In future releases, you will be able to assign compensation packages to jobs/positions.

Requirements
You must have already defined your compensation components in the step Define Compensation Components.

[welcomewiki]

Activities

1. Determine which compensation groups you require in your organization and then determine which components should be available to which group of employees.
2. First create your compensation groups by choosing Compensation group in the navigation area and then New entries
Examples of compensation groups are:
EXEC = Managerial
ADMIN = Administrative staff
LABOR = Manual workers
3. Save your entries
4. Select a compensation group and choose Compensation Package in the navigation area
5. Enter the appropriate components for the compensation group selected
6. Repeat steps 4 and 5 until you have assigned components to all your compensation groups

[welcomewiki]