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Variable Pay

Variable Pay Planning

Transform your organization with integrated HR cloud solutions that fit your business needs. Whether implementing one module or the entire SuccessFactors suite, having an experienced partner is key to a successful go-live. SAP SuccessFactors Compensation and Variable Pay and Reward & Recognition are all a part of the Compensation management package in SuccessFactors and are available under the same license.

  • Compensation deals with fixed salary paid to the employees, typically known as the annual salary review. Compensation is also used for stocks and options (LTI) and simple one time lump sums as part of the annual salary review.

  • Reward & Recognition deals with ad hoc payments paid to the employees, sometimes called one time ad hoc payments not tied to salary or bonus programs.

  • Variable Pay deals with variable pay bonus programs, typically known as the corporate bonus programme or STI.

With experienced and certified consultants, GP Strategies helps you implement a powerful bonus process with SuccessFactors Variable Pay.

Business Values of Variable Pay

Some of the key business values of implementing and using SAP SuccessFactors Variable Pay include:

  • Improve employee retention: Employees who outperform their peers will be rewarded appropriately, feel valued and happy-and more likely to stay with your company.

  • Be open, honest and accountable: Design your Variable Pay and Bonus strategy with objective data and communicate it company-wide showing a clear link between company, team and individual bonus targets.

  • Save time and money: Eliminate thousands of budget spending by making sure you are not overpaying low performers. Also, the easy-to-use automated system will save compensation managers time and money.

  • Assurance that budgets are used wisely. Automated monitoring of compliance with variable pay guidelines, keeps payouts in line with budgets. Plus, save time as bonus and merit recommendations are automated from employee performance data. Run “what-if” scenarios to instantly see how increasing merit pay to top performers will impact budgets.

  • Eliminate human error: Manage your bonus processes in a secure environment with streamlined workflows where your data is determined via calculation and eligibility engines-eliminating privacy breaches and human calculation errors.

  • Significantly reduced risk with improved audit compliance. Data for audits is automatically stored, reducing this burden for compensation administrators.

  • Tightly linked to your goal and performance management processes when relevant.

  • Prepare forward looking bonus assignment letters for easy self service access within People Profile.

  • Prepare end of year bonus statements for easy self service access within People Profile.

By rewarding goal achievement and great execution, you will retain more of your top talent and drive organizational performance. Plus, you will enjoy clearer visibility into individual employee performance when it comes time to make critical compensation planning decisions.

GP Strategies helps companies establish powerful, engaging bonus calculation processes, supported by user-friendly solutions.

How to get started?

GP Strategies SuccessFactors EMEA Practice has completed more than 650 SAP SuccessFactors projects in more than 80 countries worldwide during the last 15 years. We are covering all major industries and we provide continued operational support and maintenance for more than 75 companies. We are a SAP Gold partner, and we have been awarded SAP Recognized Expertise in all SAP SuccessFactors areas. Together with our customers we have won 11 Quality Awards in three years. Contact us for expert guidance on Variable Pay.