Guidelines on Variable Pay for Rating

[Olskar]

Hello everyone.

I am trying to understand the guidelines for Variable Pay. Do they follow the same logic as Compensation? I want to exclude employees with a Performance Rating below 3, making only those with ratings of 3, 4, or 5 eligible for bonuses. This exclusion works correctly in the Compensation module, where we receive a hard warning in the merit field. How can we implement this exclusion in the Variable Pay module, specifically in the Amt field? 

thank you in advance, 

Olga

[xavierlegarrec · Accepted solution]

Hi @Olskar 

Guidelines apply on the individual component only in Varpay (not on business payout).

So rating is used as a way to say : if rating was 1 exceptional then you can bump up the individual component of this employee's bonus up to 125% of the individual section target payout for example. 

Hope this helps.

What do you mean by "exclude" ? fully remove them from the worksheet or greying them out on the worksheet ?

I think you should be able to grey them out (=preventing them from getting any sort of bump on the individual component) using the standard rules but if you want to fully exclude them you would have to build an MDF design workaround such as this one:

https://blogs.sap.com/2022/05/27/how-to-use-performance-ratings-in-compensation-eligibility-rules/

You can also keep them on the worksheet and do a design like this to make their final payout 0 , see my final comment here:

https://community.sap.com/t5/human-capital-management-q-a/variable-pay-exclusion-of-employees-with-p...

All the best,

Xavier

[Olskar · Accepted solution]

Hello @xavierlegarrec ! Thanks for your response. I mean to grey them out or mark them. Is this possible with a standard way or with a custom?

[xavierlegarrec · Accepted solution]

@Olskar I just checked and you won't be able to build the same exact logic than in Compensation in your Variable Pay template unfortunately. But you could try a workaround like the below :

or you could look at completely removing these employees from the VarPay worksheet using the workaround explained here: https://blogs.sap.com/2022/05/27/how-to-use-performance-ratings-in-compensation-eligibility-rules/

All the best,
Xavier