Compensation - Process Diagrams

SAP SuccessFactors Process Library

SAP
September, 2019

CUSTOMER
 Legend
Process Diagrams
Roles Each activity gets a task type assigned: Events Artifacts

Roles characterize process participants, and • Manual: no system There are three types of events, and they are Artifacts are additional ways to represent
are depicted in models as pools and lanes support categorized by how they affect the process flow: information, which are directly linked and
which encompass the content of process associated with other elements. Following
diagrams. • Start event artifacts are used:
• User: user interacts with
A pool is used to define the process (e.g. the system
• Intermediate event • Text Annotation: used
Candidate Selection). Lanes are used to define to provide additional
the roles within pools (e.g. recruiter, line • Service: fully automated context to an element in
manager, etc.). system task • End event the process diagram.

Additionally, these special types of events are

Gateways used:

Gateways are used in processes when • Timer event: event is

alternative paths need to be modeled. They split started/continued at a certain
Activities the procedure in two (or more) ways, and merge point in time or after a certain
the paths later in the process: time span
Activities describe the different steps in
processes. An activity is an action, a unit of • Exclusive gateways (XOR- • Message event: event is
work performed. They are labeled by the action Gateways) are used if only started/continued when a
describing the task (e.g. interview applicant). one condition can be chosen. message is received. In case of
• Simple activity, which is a The XOR gateway awaits one an end event, a message is
task in the process incoming branch before sent at the end of the process.
triggering the outgoing flow.

• Collapsed sub process, • Parallel gateways (OR-

where more than one activity Gateways) activate all
is modeled in a separate outgoing flows, and the
process diagram and linked junction awaits all incoming
to a task in the parent flows before the process flow
process. can continue.
© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 1
MHR-90 Compensation

MHR-90 Compensation
MHR-90-10 MHR-90-20 MHR-90-30 MHR-90-40
Manage Long-
Manage Salary Manage Short- Term Incentive Manage Rewards
Review Term Incentives and Recognition
Granting
MHR-90-10 Manage Salary Review

MHR-90-10 Manage Salary Review

MHR-90-10 Manage Salary Review

MHR-90-10-10 MHR-90-10-20 MHR-90-10-30
Prepare Budgets Prepare Salary Execute Salary
for Salary Review Review
New Salary Review Cycle
Review Salary Review Completed
to be Started
MHR-90-10-10 Prepare Budgets for Salary Review

Compensation Specialist

Company Company Eligibility Budget for Budget for Budget for

Economic Workforce Eligibility Salary Surveys Salary Review
Indicators Indicators Criteria Budget Criteria Merit Increases Promotions Adjustments
Plans
Previous Cycle Initial Initial Initial
Compensation Specialist
MHR-90-10-10 Prepare Budgets for Salary Review

Analyze
Economic
Define Eligibility Propose Maintain
Trends and Criteria and Create Cost Budgets for
Survey Input to Approved Salary
Collect Data Plans Approval
Define Salary Review Budget
New Salary Review Cycle Used for Salary Budget for Salary Review
to be Started Review Budget Increases and Lump Approved
Sum Payments in lieu

Salary Review Eligibility Budget for Budget for Budget for Budget for Budget for Budget for
Budget Criteria Merit Increases Promotions Adjustments Merit Increases Promotions Adjustments

Initial Initial Initial Approved Approved Approved

Compensation Committee
Compensation Committee

Review and
Approve
Budgets
MHR-90-10-20 Prepare Salary Review
Compensation Administrator Compensation Administrator

Compensation Combined Reward Compensation Employee -

Framework and Statement for Salary Salary Review Employee - Job Performance
Framework and Template Information Compensation Review
Guidelines Review, STI and LTI Guidelines Information
Compensation Administrator

Initial Final

Compensation ... Compensation ... Compensation ... Compensation ...

Create Update
Compensation Create Reward Compensation Create
Template for Statement Template for Compensation
Salary Review Template Salary Review Worksheets

Salary Review Reward Salary Review Compensation

Template Statement Template Worksheet
Template
Compensation
Specialist
MHR-90-10-20 Prepare Salary Review

Compensation Specialist Compensation Specialist

Verification using a
download of the
Compensation Budget for Budget for Budget for Using Compensation Compensation Executive Review to
Framework and Merit Increases Promotions Adjustments Compensation Framework and Models check completeness
Guidelines Modelling Guidelines and correctness of
Approved worksheets Salary Review Started
Previous Cycle Approved Approved Initial
Compensation Specialist

Compensation ... Compensation ...

No
Verify the Effect Maintain Maintain Verify and
Prepare of the Framework and Yes Present Framework and Run Information Release
Framework and Framework and Guidelines with Framework and Guidelines with Session for
Guidelines Guidelines on Changes if Guidelines Changes if Salary Review Compensation
Budgets Necessary Necessary Worksheets
Budget for Salary Review This comprises:
Approved - Guideline Matrix (increases per rating) Framework and
- Eligibility Guidelines OK?
- Budgets
- Salary Pay Matrix (per job, location, paygrade)
- Currency Conversion Planning Managers Notified
- Optional look-up tables
Compensation Compensation Compensation
Compensation Compensation
Framework and Models Framework and Framework and Worksheet
Guidelines Guidelines Guidelines
Ready for Planning

Start of Salary Review Notification

Initial Validation Final Manager

Information Session
Compensation Committee Compensation Committee
Compensation Committee

Review and
Approve
Framework and
Guidelines

HR Business Partner Line Manager

MHR-90-10-30 Execute Salary Review

Employee

Next Level Planning Manager Next Level Planning Manager

Compensation Next level manager can

Worksheet send it back to line
manager with comments,
Approval if necessary
Next Level Planning Manager

Compensation ... Compensation ...

Review Planning
Manager
Submit Proposal

Compensation Statement
Proposal and for Approval
Update if
Necessary
MHR-90-10-30 Execute Salary Review (Plan and Approve)

Compensation
Worksheet
Compensation
Specialist

Planning Manager Planning Manager

Compensation
Worksheet
- Including Promotions Managers to handover and
Planning - Predefined guidelines explain Reward Statements to
Manager are applied their Employees

Compensation ... Compensation ...

Planning Manager

Salary Review Compensation Statements

Completion Notification Release Notification
Create Proposal Submit Proposal Discuss Reward
for Team for Review Statement with
Employee
Planning Managers Notified Closing Date for Employees Informed on
Manager Proposals Outcome of Salary Review

Compensation
Worksheet
Next Level
Manager

Compensation Administrator Compensation Administrator Compensation ...

Message on Completion of Salary Review

Compensation Release Reward
Worksheet Statements to
Employees
Message on Release of
Completed
Completion Statements
Compensation Administrator

Compensation ... Compensation ... Compensation ... Compensation ...

Monitor Release Reward

Generate and Statements to Publish
Progress of Check Reward Compensation
Planning Planning
Statements Managers Adjustments
Salary Review Started After 2 - 3 weeks, Salary Review
to Allow Time for Completed
Planning Managers
to Communicate
to their Employees In Case Promotions are
Part of the Salary
MHR-90-10-30 Execute Salary Review (Review and Complete)

Review Process
Reward Employee - Employee - Job
Compensation
Statement Information Information

Updated Updated

Compensation Specialist Compensation Specialist

Compensation
Worksheet Executive
Flag exceptions, e.g. out Compensation Compensation
of guidelines, low vs. high- Specialist Review Meeting
performers, etc.
Compensation Specialist

Executive Revie... Compensation ...

Final Validation
Prepare Review Review of Proposals
with Management (incl.
Compensation Proposals Adjustments if
Commitee Needed)
Closing Date for In case of changes,
Manager Proposals
a notification can be
triggered to the
original planner

Compensation Compensation
Reports Worksheet

Completed

Compensation Committee Compensation Committee

Compensation
Committee

Review
Management
Proposals
MHR-90-20 Manage Short-Term Incentives

MHR-90-20 Manage Short-Term Incentives

MHR-90-20 Manage Short-Term Incentives

MHR-90-20-20
MHR-90-20-10 MHR-90-20-15
Calculation and
Design and Set- Forecast
Communication
Up Incentive Incentive
of Incentive
Plan Payments
Annual Update of Payments Incentive Payments Calculated
Incentive Program is Due and Communicated
MHR-90-20-10 Design and Set-Up Incentive Plan
Employee

Incentive Plan Assignment Letter

Line Manager

Compensation Administrator Compensation Administrator

Assignment Letters
must use a loaded XSL Incentive Plan Assignment Letter
Combined Reward Employee - Employee - stylesheet. Editing is
Incentive Plan Statement for Salary Business Goals Employee - Job Compensation Incentive Plan Business Goals Employee - Job Compensation Release Notification
Design Information Design Information not currently available
Review, STI and LTI Information Information within the
In Process Forecast History History Final Target History History SuccessFactors UI
Compensation Administrator

Compensation ... Compensation ... Compensation ... Compensation ... Compensation ... Compensation ... Compensation ...

Create Reward Create and Provide Incentive

Create Variable Statement Calculate Update Variable Calculate Check Incentive Assignment
Pay Program Incentive Payout Pay Program Incentive Payout Plan Assignment Letters to Line
Template
Letters Managers Incentive Plan
Set-Up Completed

Includes Variable Pay

Plan template + 5 files
Reward Incentive Incentive Incentive Incentive Incentive Plan
Statement Payout - Payout - Payout - Payout - Assignment
MHR-90-20-10 Design and Set-Up Incentive Plan

Template Business Goals Individual Goals Business Goals Individual Goals Letter
Forecast Forecast Target Target

Compensation Specialist Compensation Specialist

Corporate
Incentive Plan Short-Term Business Goals Incentive Plan
Design Incentive Policy Design
Ready for
Previous Cycle Target Validation
At Start of the
Compensation Specialist

New Period

No
Review Initiate Incentive Update Business Maintain Yes Propose Maintain
Corporate Short- Request Input Incentive Plan Incentive Plan
Term Incentive Plans Design for on Business Goals with KPI with Changes if Incentive Plan with Changes if
Policy the Year Goals KPI's Targets Necessary for Approval Necessary
Annual Update of
Incentive Program is Due Incentive Plan
Includes: OK?
- Bonus plan weights
- Business Goals
- Business Goal weights
- Eligibility
Incentive Plan - Employee history data definition Incentive Plan Incentive Plan Incentive Plan
Design Design Design Design
Ready for
Initial In Process Validation Final

Compensation Committee Compensation Committee

Compensation

Review
Committee

Corporate Short- Review and

Request Business Goals KPI's Business Goals KPI's Approve Incentive Plan
Term Incentive Incentive Plan Design Communication
Policy (Targets) (Targets)

Finance and Controlling HR Business Partner

MHR-90-20-15 Forecast Incentive Payments

Compensation Administrator

Employees Can See Updated

MHR-90-20-15 Forecast Incentive Payments

Employee -
Business Goals Employee - Job Compensation Forecast Results in Their
Information Variable Pay Individual View
E.g. Every Information

Compensation Administrator
Quarter Forecast History History

Compensation ...

Request Input Review Forecast

on Business Calculate Calculation and
Goals KPI's Incentive Payout Provide Results
Forecast of Incentive Forecast of Incentive
Payments to be Updated Payments Updated

Incentive Incentive
Payout - Payout -
Business Goals Individual Goals
Request Business Goals KPI's Business Goals KPI's Forecast Forecast
(Forecasts) (Forecasts) Forecast Results

Finance and Controlling

MHR-90-20-20 Calculation and Communication of Incentive
Payments
Employee Employee

Live Profile
Employee

Discuss Reward Access Variable

Statement with Pay Individual
View for Detailed
Manager Calculation Employees Informed about
Incentive Payment

Next Level Planning Manager Next Level Planning Manager

MHR-90-20-20 Calculation and Communication of Incentive Payout (Line Managers)

Incentive
Payout -
Individual Goals
Planned
Next Level Planning Manager

Compensation ... Compensation ...

Review Planning
Manager Submit Proposal
Proposal and
Update if for Approval
Necessary

Variable Pay
Worksheets
Compensation
Specialist

Planning Manager Planning Manager

Variable Pay Reward

Worksheet Statement
Planning
Manager
Planning Manager

Compensation ...

Review Reward Statements

Notification of Incentives - Submit Proposal Release Notification
Start of Incentive Discuss Reward
Planning Received Discretionary for Review
Component Statement with
Employee
Closing Date for
Manager Proposals

Variable Pay Message on Release of

Worksheet Reward Statements
Next Level
Manager

Compensation Administrator Compensation Administrator

Latest at
Payment Date
Notification of Start of Incentive Planning

Performance Employee - Release Reward

Business Goals Employee - Job Variable Pay
Review Information Compensation Business Goals Worksheets Statements to
Information Employees
Achievements History History Achievements Completed
Compensation Administrator

Entered manually
Compensation ... Compensation ... or through
Compensation ... Compensation ... Compensation ... Compensation ... Compensation ...
upload
Request
Business Goals Calculate Create Variable Request Final Refresh Release Reward
Monitor Business Goals Generate and Statements to Publish Incentive
KPI's Incentive Payout Pay Worksheets Progress of Calculation of Check Reward
KPI's Business Goals Planning Payouts
MHR-90-20-20 Calculation and Communication of Incentive Payout (Preparation)

Incentive Plan Deadline to Maintain

Achievements Planning Statements
Achievements Component Managers Incentive Payments Calculated
Set-Up Completed Goal Achievements Closing Date for After 2 - 3 weeks,
Manager Proposals to Allow Time for and Communicated
Planning Managers
to Communicate to
their Employees

Incentive Incentive Incentive

Variable Pay Employee -
Payout - Payout - Worksheet Payout - Reward
Business Goals Individual Goals Business Goals Statement Compensation
Compensation Information
Calculated Calculated Administrator Final
Updated

Compensation Specialist Compensation Specialist

Variable Pay
Worksheets In Case of Changes, a
Notification Can Be Triggered
Compensation to the Original Planner
Specialist
Compensation Specialist

Compensation ... Executive Revie... Compensation ...

Prepare Review Review Final Validation

Verify Variable with Management of Incentives (w/
Pay Worksheets Compensation Proposals Adjustments if
Commitee Needed)

Request Final Final

Business Goals KPI's Business Goals KPI's
Variable Pay (Achievements) (Achievements) Compensation Variable Pay
Worksheet Reports Worksheets
Planning
Manager Completed

Compensation Committee Compensation Committee

Compensation

Review
Committee

Business Goals KPI's Management

Request Business Goals KPI's Proposals
(Achievements) (Achievements)

Finance and Controlling

MHR-90-30 Manage Long-Term Incentive Granting

MHR-90-30 Manage Long-Term Incentive Granting

MHR-90-30 Manage Long-Term Incentive

Granting
MHR-90-30-10 MHR-90-30-20 MHR-90-30-30
Prepare Budgets Prepare LTI Execute LTI
for LTI Review Review
New LTI Cycle to be Started LTI Review Completed
MHR-90-30-10 Prepare Budgets for LTI

Compensation Specialist

Company Economic Company Eligibility Eligibility Budget for Budget for Budget for
Workforce Salary Surveys LTI Budget Criteria Options Stock RSU's
Indicators Indicators Criteria
Plans
Previous Cycle Initial Initial Initial
Compensation Specialist

Analyze
MHR-90-30-10 Prepare Budgets for LTI

Economic Define Eligibility Propose

Trends and Create Cost Maintain
Survey Input to Criteria and Plans Budgets for Approved LTI
Define LTI Budgets for: Collect Data Approval Budget
New LTI Cycle Budget for LTI
to be Started Budget - Options Approved
- Stock
- RSU's

Eligibility Budget for Budget for Budget for Budget for Budget for Budget for
LTI Budget Criteria Options Stock RSU's Options Stock RSU's

Initial Initial Initial Approved Approved Approved

Compensation Committee
Compensation Committee

Review and
Approve
Budgets
MHR-90-30-20 Prepare LTI Review
Compensation Administrator Compensation Administrator

LTI Framework Compensation Employee - Job Employee - Performance

and Guidelines Framework and LTI Template Compensation
Combined Reward Information Review
Guidelines Information
Statement for Salary
Compensation Administrator

Initial Review, Bonus and LTI Final

Compensation ... Compensation ... Compensation ...

Create Create Reward Update Create

Compensation Statement Compensation Compensation
Template for LTI Template Template for LTI Worksheets

Reward
LTI Template Statement LTI Template LTI Worksheet
Template
Compensation
Specialist
MHR-90-30-20 Prepare LTI Review

Compensation Specialist Compensation Specialist

Verification using a
Using download of the Executive
LTI Framework Budget for Budget for Budget for LTI Framework Review to check
Compensation and Guidelines
and Guidelines Options Stock RSU's Modelling completeness and
LTI Review Started
Ready for correctness of worksheets
Previous Cycle Approved Approved Approved Validation
Compensation Specialist

Report Center Compensation ...

No
Verify the Effect Maintain Maintain Verify and
Prepare of the Framework and Yes Present Framework and Run Information Release
Framework and Framework and Guidelines with Framework and Guidelines with Session for LTI Compensation
Guidelines Guidelines on Changes if Guidelines Changes if Review Worksheets
Budget for LTI Approved Budgets Necessary Necessary
This comprises: Framework and
- Guideline Matrix Guidelines OK?
- Eligibility
- Budgets
- Stock Values tables
- Optional look-up tables
Line Managers Notified
LTI Framework Compensation LTI Framework LTI Worksheet
and Guidelines Models and Guidelines

Initial Final Line Manager

Start of LTI Review Notification

Information Session
Compensation Committee Compensation Committee
Compensation Committee

Review and
Approve
Framework and
Guidelines

HR Business Partner Line Manager

MHR-90-30-30 Execute LTI Review

Employee

Next Level Planning Manager Next Level Planning Manager

Next Level Manager can

LTI Worksheet send it back to Planning
Manager with comments,
Next Level if necessary
Manager
Next Level Planning Manager

Compensation ... Compensation ...

Review Planning
Manager
Proposal and Submit Proposal
Update if for Review

Reward Statement
Necessary
MHR-90-30-30 Execute LTI Review (Plan and Approve)

LTI Worksheet

Compensation
Specialist

Planning Manager Planning Manager

Note: For LTI Review a LTI Worksheet

Compensation Planning Managers to handover and
Manager is determined, Planning explain Reward Statements to
as not all Line Managers Manager their Employees
will play a role

Compensation ... Compensation ...

Planning Manager

LTI Review Reward Statements

Completion Notification Release Notification
Create Proposal Submit Proposal Discuss Reward
for Team for Approval Statement with
Employee
Planning Managers Notified Closing Date for Employees Informed on
Manager Proposals Outcome of LTI Review

LTI Worksheet Reward

Message on Release of Statement
Reward Statements
Next Level
Manager

Compensation Administrator Compensation Administrator Compensation ...

Latest at Grant
Date
Release Reward

Message on Completion of LTI Review

LTI Worksheet Statements to
Employees
Completed
Compensation Administrator

Compensation ... Compensation ... Compensation ...

Monitor Generate and Release Reward Publish LTI

Progress of Check Reward Statements to Grants to LTI
Planning Statements Planning Service Provider
LTI Review Started Managers LTI Review Completed
After 2 - 3 weeks,
to Allow Time for
Planning Managers
to Communicate
to their Employees
MHR-90-30-30 Execute LTI Review (Review and Complete)

Reward
Statement

Compensation Specialist Compensation Specialist

LTI Worksheet

Compensation Executive
Specialist Compensation
Review Meeting
Compensation Specialist

Executive Revie... Compensation ...

Final Validation
Prepare Review Review of Proposals
with Management (incl.
Compensation Proposals Adjustments if
Commitee Needed)
Closing Date for In case of changes,
Manager Proposals
a notification can be
triggered to the
original planner

Flag exceptions, e.g. out

of guidelines, low vs. high- Compensation LTI Worksheet
performers, etc. Reports

Completed

Compensation Committee Compensation Committee

Compensation
Committee

Review
Management
Proposals
MHR-90-40 Manage Rewards and Recognition

MHR-90-40 Manage Rewards and

Recognition
MHR-90-40-10 MHR-90-40-20
Design and Set-
Up Rewards and Nomination and
Recognition Communication
of Reward
Annual Update of Rewards Program Employee Informed about
and Recognition Program is Due Reward Given
MHR-90-40-10 Design and Set-Up Rewards and Recognition
Program
HR Business Partner

Employee

Compensation Administrator
Peer-to-Peer
Recognition
Program Includes:
- Categories and Levels
Compensation Administrator

- Budget
- Guidelines
- Eligibility
MHR-90-40-10 Design and Set-Up Rewards and Recognition Program

- Workflow

Admin Center

Release and
Create Rewards Communicate
and Recognition Rewards and
Program Recognition
Program Rewards and Recognition
Plan Set-Up Completed

Compensation Specialist

Categories,
Levels and Budget Assigned per
At Start of the Elgibility Line Manager
Year
Compensation Specialist

Review Rewards Determine

and Recognition Budget
Program
Annual Update
of Rewards and Recognition
Program is Due
MHR-90-40-20 Nomination and Communication of Reward

Employee

Communication
Line Manager

Line Manager of
the Nominated
Employee
Reward and Re...
Line Manager

Approved?
MHR-90-40-20 Nomination and Communication of Reward

Approval Request Received

Review Reward Yes
Nomination and
Check Against Publish Reward
Budget Employee Informed
about Reward Given

No
Nominator

Select:
- Employee
- Applicable Reward Category and Level
- Reward Amount
and Write Motivation
Nominator

Reward and Re...

Nominate
Employee for
Spot Reward
Need to Nominate a Reward Nomination Rejected
Reward Occurred
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