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Whitaker-Taylor Insights

Improve Pay Planning with SuccessFactors Compensation Profile

Dec 2, 2016 12:20:00 PM / by Whitaker-Taylor

Improve Pay Planning with SuccessFactors Compensation ProfileFor almost all businesses, their biggest expense is employees, and most of that expense is salary, wages, and incentives. It makes sense to use the right tools to manage that expense.

A small organization can afford to use spreadsheets and email for compensation management. For larger businesses, juggling multiple plans requires modern tools that enable them to find the correct balance of business strategy, competitive pay, and budget constraints.

Pay for performance, when aligned to business objectives, is a primary driver of business performance. Employee engagement and the employee experience matter, but when people are concerned about pay, it seems nothing else matters. Misallocation of resources can be a drag on productivity.

Those two factors - complexity and strategic importance - make it imperative that companies have a robust compensation platform to manage employee pay.

Are You Missing Compensation Updates?

Over 3,000 organizations use SuccessFactors Compensation and Variable Pay to manage their compensation reviews. Although initial implementation can be complex, ongoing maintenance is minimal, and the software easily adapts to most changes in pay policies.

We find that because maintenance is so trouble-free, many SuccessFactors Compensation customers neglect to implement new features that can have a significant impact on the way they manage pay. In our work with clients, we find many have not yet enabled the Compensation Profile.

Most Compensation functions help manage compensation reviews of groups of employees to ensure equity, fairness, and appropriate rewards for performance. The Compensation Worksheet is the starting point for salary reviews (Figure 1).



Individual Compensation Reviews

The Compensation Profile (Figure 2) displays and analyzes comprehensive information about a single employee. Managers can use the profile to consider each person as an individual with unique abilities and aspirations. That unique viewpoint makes it easier for managers to think about compensation in relation to the employee’s individual performance and potential to create future value for the organization.

Improve Pay Planning with SuccessFactors Compensation Profile

The Compensation Profile presents employee information in three sections:

  1. 1. Employee information contains position, location, departments, hire date, and
  2. status.
  3. 2. Salary positioning displays information related to current pay, Compa-ratio and Range Penetration.
  4. 3. The planning section displays the tools a manager needs to make compensation decisions.

A better employee experience starts with managers, and busy managers need all the help they can get. Implementing the Compensation Profile will create a better planning experience for managers and strengthens their relationships with their employees.


We recommend you review each quarterly update to be sure you do not miss enhancements that can help you retain productive employees and their managers. Small changes can sometimes have a significant, long-lasting impact.


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Topics: SuccessFactors

Written by: Whitaker-Taylor