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Best Practices for SF (salary/pay components)

CZ1
Explorer
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Hello,

Does anybody have information regarding what the best practice approach is, in SuccessFactors to setup salary/pay components in SuccessFactors.

Kind regards

Cor

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Answers (2)

Answers (2)

CZ1
Explorer
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Hello Jasper,

Thanks for the feedback

// Cor

nlgro023
Active Contributor
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Depends a bit on the company (if only 1 country is in scope, I'd define different standards than for multiple countries). Assuming the worst, for multiple countries I'd ideally have a custom field for an ID, because it's possible that different countries use the same ID for a different purpose. Hence then the regular SuccessFactors code is like NLD_0001 and the custom field is 0001 (for payroll purposes).

Always apply the right frequency for the right general purpose, indicate correctly if it should be one time or recurring and define the country and currency as well (that makes it easier for filtering purposes and for instance for calculating Compa-ratio, range penetration etc.).

With at least dutch pay components, think through correctly how you wish to understand if it's a negative or positive amount. The easiest is to always define this on the pay component, but sometimes it's a bit difficult to see what it means on the payroll side. In some cases it could be on the SuccessFactors side that for instance a pay component can be a + amount, whereas payroll actually deducts it (best example is the "bijtelling" in the Netherlands, which is a positive amount, but gets deducted on the payroll side). It's in that sense best to see how you communicate that correctly to payroll (which in NL is usually covered by just accepting it's a + amount in SuccessFactors and that in payroll it's seen as a -).

Always put a business rule for automatically taking some values when adding a pay component (i.e. currency, frequency etc.) as that makes calculating easier.

Think through well if you want pay components to be visible in the compensation part or the additional part and for what purpose. I always prefer salary (related) in the compensation part and other pay components in the other part to make it more clear.