Main components of ECM
Compensation Administration
Perform compensation reviews including
fixed pay, variable pay, and LTIs. Apply eligibility rules and guidelines
based on different criteria such as performance ratings. Implement approval
cycles if required.
Long-Term Incentives
Administer LTI processes such as
granting, vesting, life events,and taxation. Transfer granting data to
banks/brokers for exercising and retrieve data back for payroll processing
by means of standard xml interfaces.
Budgeting
Create and maintain monetary and
non-monetary budgets for the compensation planning and LTI granting process.
Job Pricing
Export employee salary data for
participation in salary surveys.Import salary survey data and create market
composite results. Age and weight market data, compare internal and external
pay and adjust company pay structure if required.
Self Test Questions
What are the main areas of Compensation Management?
a. Job Pricing
b. Job Evaluations
c. Budgeting
d. Compensation Administration
e. Travel Management
The following Infotypes are used in Compensation Management:
a. Basic Pay
b. Salary Survey Results
c. Planned Compensation
d. Job Evaluation Results
e. Additional Payments
The use of Quota Compensation Infotype (IT-0416):
a. You can compensate the employee while availing an Absence
from the particular Absence Quota.
b. You can compensate employees for absence entitlements
that were not deducted by absences.
c. Records from Quota Compensation Infotype are
directly valuated in the gross part of payroll.
d. The absence entitlements of the employees get increased
based on the Increment percentage specified in the Infotype.
e. None of the above.
