Variable Pay-Payout curves-Interpolation

[rkumar1947]

Hi Experts

Looking to seek your advice on achieving the following:

• Bonus Payout percentage against Business achievement % (using Interpolation function)

There are four scenarios that we are looking at where Bonus Payout % will be dependent on Business Achievement % with or without the Performance Min (Threshold) or Performance Max(Stretch).

Attached documents captures these scenarios.

Q1- Would like to understand if these scenarios are supported by SuccessFactors Variable Pay using Interpolation function without using Performance Min and Performance Max and using Performance Target Low and Performance Target High only?

Q2-Should we be looking at Enabling Flexible Payout Curves to achieve these scenarios?  If yes, then how should be using the column “Performance_Step” in the Flexible Payout curves import file to ensure that “Interpolation” function works for us. SAP Help document mentions that this column can be used to set up Payout curves with an unlimited number of “Interpolation” points. It is not clear how entering various points in "Performance_Step" will result in "Interpolation" for any value that falls between two points.

Q3- As the Payout percentage corresponds to Business Achievement %, how do we store Business Achievement %? Should it to stored as a simple number as a point in the Interpolation function or it needs to be stored in a different way.

Many thanks

[xavierlegarrec]

Hi @rkumar1947 

just checking if you've come across this blog I made a few years ago that explains everything we can do with each function in VarPay.

Yes it seems like whichever function you decide to go with you will need Flexible Payout Curves here indeed which allows you to simply load more values than what is offered in the Admin Center screen.

I would point to the conclusion of the blog because sometimes it's the only solution : If Interpolate or Step types Metrics don't meet customers requirements in terms of formulas then the only workaround is to switch to a Direct type where calculations are made outside the system and only the final achievement percentage is loaded for each business goal.

All the best,

Xavier

[rkumar1947]

Hi @xavierlegarrec -Thanks for coming back. I have seen your blog and want to know if Flexible Payout Curves do allow Interpolate option at all? If we cannot use PERFORMANCE_STEP for Interpolate and it is only for STEP function then how do the Flexible Payout Curves help to calculate Interpolate option as mentioned by SAP. Thanks

[xavierlegarrec]

After some more research it is indeed supported for Interpolation but once you start uploading Flexible payout curves then Min/Max/Target entered in the Business Goal Details become redundant. https://help.sap.com/docs/SAP_SUCCESSFACTORS_COMPENSATION/2db61525a45e47e2b1de119b5282c173/1d6c211e9...

Working on making an example for you that I can add to the blog. 

[rkumar1947]

@xavierlegarrec-Thanks for the clarification. Will wait to see your updated blog.