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Compensation challenges and how SAP SuccessFactors' Compensation and Variable pay solution can help

Posted on behalf of Srinivasa Rao Edara, Principal - Enterprise Applications, Infosys

Are you a busy compensation manager executive looking for a new state of the art compensation solution to help you with your compensation challenges? Or maybe you're looking for a compensation solution which is flexible, intuitive and easy to use. In either case, SAP's cloud-based SuccessFactors compensation platform, partnered with Infosys, has the tools you need to successfully roll out your short term and long term compensation plans.

Let me take you through the case of a fictional organization named Acme Corporation. Acme Corp is a global conglomerate with a diversified portfolio of business across 20+ countries. They also operate in multiple business verticals (Trading / Manufacturing / Hi-tech). Acme Corp has grown over the years largely through acquisitions and as a result most of its functions are decentralized & processes are either unconnected small country based systems or in some other cases even manual and localized.

At present Acme Corp is using SuccessFactors Employee Central as its Core HR.

HR leadership is looking for a Global Compensation Planning system for all the business units across the globe. They reached out to Infosys to provide Advisory services for selecting and implementing a Compensation planning solution for the entire company.

Acme asked Infosys to do a deep dive assessment of their current landscape, identify opportunities for improvement, future proofing the solution and propose the best compensation platform moving forward.

Infosys quickly assembled a team of certified talent and Compensation experts to meet with the Acme to understand their business challenges and future transformational aspirations. Working together, the team quickly identified current challenges and future transformational goals around compensation:

Current Challenges

• Extensive use of email & excel based Merit recommendations & Bonus payout nominations

• Non-Integrated / clustered business processes between systems leading to delays in Compensation cycles

• Less focus on Strategic Organizational objectives

• Issues in Regulatory & Organizational Compliance

• Absence of Global Reporting & Metrics

• No visibility for Leadership

Future goals

• Tying compensation to performance

• Understanding and complying with regulations

• Retaining key people

• Developing a succession plan

• Competitive pay

Having multiple compensation solutions across the globe and verticals to develop and manage compensation plans, Infosys quickly realized that Acme's compensation organization was getting tired of the manual workarounds and needed a single compensation platform that can deliver an intuitive,  flexible solution which can be easily managed by the admins, provide a great user experience, work well with their current HR systems (SuccessFactors Employee Central) and talent systems, and finally, provide greater visibility to managers and executives.

Together, Acme and Infosys chose SuccessFactors compensation and variable pay solution as the platform of choice. This solution addresses most of Acme Corp's challenges and aspirations and also offers the following industry leading approaches/functionalities which makes the solution future proof for Acme Corp:

• Consolidation of global business requirements and validation against business requirements

• Overall solution architecture, design and Integration with Employee Central & 3rd party systems

• Project Planning & Risk Management plans

• Design & configuration of Global reporting and embedded analytics

• Extended support for solution post go-live

• Salary Increase/Planning

• Bonus Calculation/Planning

• LTI (Equity) Granting

• Compensation and Total Rewards Statements 

• Salary structure

• Off-cycle transactions

• Job Pricing/Market Pricing

By leveraging the Infosys IMPACT framework, that combined Infosys 'project management methodology with SuccessFactors SAP Launch Methodology, Infosys implemented a strategic solution for:

  • Building the Acme Corp's compensation platform using the SuccessFactors compensation and variable pay platform by making use of the industry best guiding principles

  • Establishing an ideal corporate governance model to support this transformation

  • Transforming and migrating data and content from multiple 3rd party compensation platforms

  • Consolidating interfaces and building custom reports using BIRT

  • Supporting Acme during SuccessFactors upgrades, enhancements and quarterly releases

Working hand-in-hand with Infosys, Acme successfully rolled out:

  • Acme Compensation and Variable pay solution platform to over 25,000 employees in 20 countries where they have business operation.

  • Over 17 different compensation plans were implemented across the globe in a phase wise manner.

  • Dual Deployments. First deployment was for all corporate employees and second deployment was for all other employees across geographies.

Ultimately, Acme Corp. found compensation managers and users across all verticals loving the new Acme Compensation platform, admins easily able to manage compensation plans, business harmonizing many of their convoluted processes, overall lower total cost of ownership, and executives having greater control around reports and visibility. With this platform, Acme Corp can take advantage of the following business benefits:

  • Automated & Streamlined Merit Planning and Bonus Payout calculations

  • Decentralized Process Administration with defined Security

  • Integrated solution architecture

  • Multiple Bonus Plans consolidated into Bonus Programs aligning with Business objectives in different Countries & Business units

  • Global budgeting process providing real-time insights into budget spend

  • Leadership Visibility into Compensation planning & budget distribution

  • Standardized global compensation metrics & reporting to all levels of user levels

  • Compensation & Bonus Payout cycle times reduced by 65% leading to increased employee satisfaction

  • Compensation team able to focus on Strategic business objectives

Infosys can help design and implement similar compensation planning solutions for your organization as well. Do drop in at Booth 410 at this year's Sapphire and meet our experts.

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