Variable Pay: Business Goals Assignment to Bonus Plans

[sferreira]

Hi everyone,

I have the current use case for Variable Pay: my customer wants to limit the number of Bonus Plans he needs to configure across the group. The idea would be to have generic Bonus plans, e.g. engineering, management, etc, and then be able to assign business goals per entity - see below example.

Bonus Plan	Business Goal	Goal weight
Engineering (business20% + Individual80%)	EBIT Germany	50%
Engineering (business20% + Individual80%)	Revenue Germany	50%
Engineering (business20% + Individual80%)	EBIT UK	50%
Engineering (business20% + Individual80%)	Revenue UK	50%

Is this even possible? Is the system allowing this and can then do the proper assignment of the business goals to the employees based on the eligibility criteria within the business goal?

If this is not possible, is there another way in order to avoid to have the same Bonus Plan per entity due to the business goals assignment?

Any suggestions? @xavierlegarrec 
SAP SuccessFactors Compensation

Really appreciate any help on the topic.

Best regards,

Susana Ferreira

[xavierlegarrec]

Hi @sferreira 

yes it is possible, it's actually the most standard design of variable pay and leading practice you can have. As long as you don't need different sections weightings (for example 80% business and 20% individual in one case but 50-50 in another case for different groups of engineers) then you don't need different Engineering plans.

Business goals assignment to the employee work based on the attribute and value you select when you create them (they must be tied through your admin tools mapping to the bonus plan assigned to the employee, but they have their own flexibility in being assigned by country or business unit or location or whichever other criteria).

All the best

Xavier

[sferreira]

Dear @xavierlegarrec, thank you very much for your prompt reply.

And a follow-up question: this configuration will have no issue regarding the total weight sum checked by the system? For example, in the above case the system has a warning message mentioning that the total weight is above 100%, but I assume this is simply a warning, it will still work correctly and pick the right business goals per employee and the respective weighting?

Also, is there a limit on how many different business goals we could assign to a general bonus plan? For example there might be performance issues to consider?

My customer would need business goals per country, division even location. So per Bonus Plan we could have dozens or hundreds of business goals to be assigned to one Bonus Plan.

Thank you once again for the help.

Susana 

[xavierlegarrec]

Hi @sferreira , yes it's simply a warning. As long as you don't use UserID to assign Business Goals you should be fine performance wise, and no there is no limit I know of. It's fine to have a few hundreds, it's faily common accross the customer board.